As we know, universities play an enormous role in our community, economy and obviously education and everything that flows from that. The success of Australia’s universities to attract students in the global market also has a significant impact on the apartment market (outside of the traditional or purpose built student accommodation market).
A recent article in University World News stated, “Australia’s position in the international higher education market weakened significantly over the past two years. But recent demand and application data suggest Australia’s position may be strengthening since the border re-opening was announced in November.
More than 43,000 international students have arrived in Australia since 1 December.
Australia’s share of demand from international students has recovered from a low of 16.22% in October 2021 to 19.68% in January 2022, despite rising COVID-19 case numbers…”
With Melbourne and Sydney attracting the large majority of these students (especially with Perth practically closed) we have seen a spike in demand for apartment rentals in Melbourne through January from many sectors including tertiary students and we expect that to continue. Even if an apartment is not the type or style that would attract university students, the influx diminishes the weight of vacant apartment that have been retarding the market for some time. Also the demographic profile of Uni Students isn’t what it was 20 years ago with many having significant spending power.
Australian universities are highly regarded on a world stage and their sustained recovery and growth requires students to receive a world class experience and this may take time to be built and communicated.