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The landlord lost nearly $60 million a month in the absence of foreign students

Source: yeeyi.com
[Economic News]     30 Jun 2020
landlords in sydney and melbourne are calculating the losses caused by foreign student leave, with an estimated $60 million in lost rental income per month. According to Juwai estimates, after the outbreak, thousands of foreign students returned home, each city will lose more than $30 million a month rent. According to figures released last week by the university of virginia Mitchell, melbourne ha...

landlords in sydney and melbourne are calculating the losses caused by foreign student leave, with an estimated $60 million in lost rental income per month.

The landlord lost nearly  million a month in the absence of foreign students

According to Juwai estimates, after the outbreak, thousands of foreign students returned home, each city will lose more than $30 million a month rent.

According to figures released last week by the university of virginia Mitchell, melbourne had 30291 fewer students in 2020 than last year and sydney had 29815 fewer students.

The Juwai`s executive director Georg Chmiel said his company`s to their company`s estimates, real estate related revenue in the rental market was reduced by about A $715 million due to a decline in overseas tenants.

These rough calculations are intended to illustrate the challenges faced by landlords in the short term. "said Mr. Chmiel.

The biggest hit, he said, is Sydney, where landlords are estimated to lose about A $7.5 million a week in rental income.

"The total loss is nearly $390 million per year ," Mr. Chmiel said ." This is an alarming amount that demonstrates the importance of international students to the Australian real estate market. "

The landlord lost nearly  million a month in the absence of foreign students

As incomes fell, some student accommodation providers slashed rents to woo local tenants.

Furnished Property Group is a rental company for foreign students. The managing director Rachel Manson said rents in the inner city and Darlinghurst、Glebe and Redfern districts had fallen from A $350 to A $400 a week to A $150.

"We had to adjust our business to recover some of the losses. "said Ms. Manson.

SQM Research data showed a surge in vacancy rates in sydney during the new crown outbreak, with the latest data showing 29416 real estate vacant in may, including student apartments.

The landlord lost nearly  million a month in the absence of foreign students

"Sydney`s rental market is in its worst condition in 25 years, and a huge gap has been left after they banned Chinese students from coming to Australia. "Even the local student market is down because students in other states are studying at home ," Ms. Manson said. "

Ms. Manson said that in early april the prime minister Scott Morrison asked students to go back to their original place and called to Furnished Property Group that the default exceeded the number of reservations.

Many apartments in Melbourne are also vacant, so landlords are considering rent cuts to attract tenants.

The head of the Belle Property Carlton Scott McElroy said the local rental market was hit hard not only because of fewer students but also because of fewer tourists and because there were no big events in the city.

And since February, online CBD has more than doubled the number of rent-a-holdings available for short rentals or student apartments.

"It`s not easy to rent to others because it`s a specific market. "said Mr. McElroy. He said the problem is unlikely to improve this year as students continue to stay overseas. "I don`t think this will change until Christmas. "said Mr. McElroy.

Mr. Chmiel of Juwai IQI said Australia would remain a strong attraction for foreign students, and he believes it will improve next year. "The good news is that we can hope that most of the lost students will be back by early next year, and that Australia`s appeal to foreign students will be unprecedented. "He said.

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