It looks like rents, particularly in the inner suburbs of Sydney and Melbourne, may fall as the number of international students is diminishing with fewer migrants expected to call Australia home.
In Melbourne’s CBD, which is dependent a great deal on the influx of international students, advertised rents are down by more than 22% since March. In neighbouring Southbank they have dropped by more than 13%.
At Sydney’s Darlinghurst rents are down by a quarter, and fallen by 15% in The Rocks and across Haymarket.
About 60% of the nation’s population growth over the past decade has been driven by net overseas migration, which totals 2.7 million residents. International students account for about 50% net overseas migration.
But with the pandemic resulting in closure of the border, as well as concern globally among people moving between nations, the number of international students flying in is likely to see a sharp decrease.
According to federal government’s National Housing Finance and Investment Corporation forecasts, the demand for housing could be cut by between 129,000 and 232,000 dwellings over the next three years.
The report also suggests that there is likely to be 214,000 fewer people in the country than if the coronavirus had not occurred, between 2019 and 2021. This would make it the biggest slowdown in population growth since 1916 and 1917 when hundreds of thousands of Australians were overseas involved in World War I.
Australia’s second wave of infections is likely to further slow population growth, hindering the pace of recovery in underlying housing demand, say experts.
It looks like #rents, particularly in the inner suburbs of #Sydney and #Melbourne, may fall as the number of international students is diminishing with fewer migrants expected to call Australia home. #TheIndianSunhttps://t.co/5QjVG1QQBR
— The Indian Sun (@The_Indian_Sun) September 23, 2020