International Students Putting Pressure on the Rental Market

A resurgence of international students arriving in Australia is predicted to cause a notable increase in rental prices by approximately 5% in the upcoming months. It’s considered that nearly 50,000 Chinese students arriving in the country for the commencement of the new academic year are the main driving force behind the demand increase.

Kent Lardner, the founder of Suburbtrends, asserts that a substantial increase in the student population will lead to heightened demand for rental properties, and create a surge in rental prices.

He further explains that the rental market typically experiences an uptick in vacancy rates in the suburbs surrounding university campuses during the Christmas break. However, as students return and new students initiate their accommodation search in the following weeks, vacancy rates are expected to plummet to below 1% in most of these areas.

Lardner believes that the arriving Chinese students will intensify the competition for available rental properties, resulting in rental prices escalating by at least 5% in a relatively short period of approximately four weeks. This increase in demand, coupled with a limited supply of rental properties, is set to make finding accommodation more challenging for students.

In locations such as Sydney and Victoria, many student housing providers are already facing a scarcity of vacancies. Education consultant Tim Winkler states that this lack of available housing may lead some students to consider deferring their studies if they are unable to secure suitable accommodation. This would be an unfortunate consequence of the competitive rental market, as it has the potential to disrupt the academic plans of hundreds of international students.

Heightened competition for living arrangements may force many students to defer their studies due to a lack of available accommodation. As a result, students must be proactive in their search for suitable housing options to ensure a smooth transition into the new academic year.

If you would like further info on the current state of the market then our property investment advisors are here to help.