Owners in sydney and melbourne have suffered huge losses because they don`t have foreign students. Rent alone is estimated to cost a $60 million a month.
Many students from sydney and melbourne returned to their hometowns or stayed in their homelands after the new crown crisis, and china`s real estate portal estimates that landlords in sydney and melbourne lost more than a $30 million a month each month, according to Domain.
According to data released last week by the mitchell institute (Mitchell Insititute) at the university of victoria, there were 30,291 fewer students in melbourne and 29,815 fewer in sydney in 2020 than last year.
The company`s estimates show that revenue from house leasing across Australia will fall by around A $715 million in 2020 due to a lack of tenants from overseas, said Georg Chimel, the network`s executive chairman.
Although Melbourne lost a small number of students, but Chiemer believes that Sydney`s landlord`s most serious loss, weekly rent loss of about A $7.5 million.
He further noted that "the total amount of these losses (in Sydney) is close to $390 million annually" and that "this striking figure shows how important foreign students are to the (Australian) real estate market. "
Fewer international students real estate Companies turn to attract local students
Some companies that provide student accommodation have slashed rents to attract local tenants because of lower incomes.
Furnished Property is a company that provides accommodation for foreign students. The company`s general manager, Rachel Manson, said weekly rents fell from $350 to $400 a week to a paltry $150 in places such as dalingherst (Darlinghurst), greb (Glebe) and hongfang (Redfern) in and around sydney`s inner city district, forcing the company to adjust its operations to recover some of its funds.
SQM Research data show that Sydney`s house vacancy rate soared during the new crown epidemic, with the latest data showing 29,416 properties vacant in May, including student accommodation.
"Sydney`s rental market is at its worst in 25 years ," Manson said, adding that this is because there is a huge gap between supply and demand authorities Chinese students are no longer allowed in ." Even the local student market is declining because those who usually come from other states are now studying at home. "
As soon as Australian Prime Minister Morrison (Scott Morrison) asked students to return home in early April, Manson said, the company began to receive numerous calls to terminate the lease.
In Melbourne, owners are also considering price cuts to attract tenants because many apartments are vacant.
The Belle Property Carlton director, Scott McElroy, said the "destruction" of the local rental market was not just a lack of foreign students, but also the suspension of tourism and the absence of large-scale events in cities.
Advertisements for online rental housing in Melbourne`s CBD area have doubled since the month, and furniture properties used for short-term or student accommodation are all uninhabited.
"I can`t see change ". before Christmas ," says McElroy, who expects the dismal situation to turn around this year as students continue to stay overseas
But despite the difficult situation of landlords, australia is still a strong attraction for foreign students and hopes the market will rebound next year, says mr. chimir of the network.
