At a midweek rental assessment in inner-city Sydney, international student Livi Sduon joined about a dozen other potential tenants feeling less than upbeat.
She had a housemate in mind, but the two-bedroom apartment in Ultimo was out out of her price range.
“That’s really pricey.”
Ms. Sduon has visited a number of properties in the Camperdown area near her institution, but she recognizes the likelihood of finding a suitable apartment before the start of the semester is remote.
The fact that so many international students will be returning to Australia at this time makes it challenging to secure a rental, she said.
After China abruptly banned online education at foreign colleges a week ago, more than 40,000 Chinese students are anticipated to return to Australia for in-person instruction.
Few weeks remained until the start of the first semester when the sudden decision was made, leaving many students scurrying to get back to Australia.
Universities still anticipate the majority of impacted students to return far earlier than expected, despite China’s announcement that it will allow some students to petition for exemptions.
They will face competition from other renters in a rental market that is already competitive since student housing is at capacity in many cities.
Sydney real estate realtor Alison Chang claimed that since China’s prohibition on online learning, demand from international students had skyrocketed.
Before the open house even began, she noted, “we’ve had a lot of individuals apply for the property.”
“Due to the fact that they haven’t arrived in Australia yet, [students] have been seeking for brokers to inspect properties on their behalf.
“They are extending out, not simply looking at the areas around the colleges.”
Within two days of marketing the home, Ms. Chang claimed to have received more than 50 queries regarding the Ultimo apartment.
She remarked, “Someone offered to pay six months’ rent up front to get authorized.
According to CoreLogic data, Australia’s rental vacancy rate decreased to 1.3% in January from 2% at the same time last year.
Rents nationwide increased by a record 10.2% last year, reaching $555 per week.
The inflow of international students would increase rental pressure, according to CoreLogic’s head of research Eliza Owen, which might cause prices to increase even more.
Prices “can only go one way” when there is an ongoing demand and an already limited level of supply, she said.
“We’re really not well positioned to deal with it in terms of the housing supply,” the speaker said.
Areas close to colleges and transit hubs would be hardest hit, according to CoreLogic’s research director Tim Lawless.
According to him, there would be an immediate and direct impact on rental demand, particularly in and around inner-city markets in Melbourne and Sydney.
“In these extremely well-liked higher-density markets, rental conditions are nevertheless very tight. that is expected to worsen when migration picks up again.”
According to a report issued by the Student Accommodation Council last year, there is currently a shortage of beds for purpose-built student housing in several big cities.
According to the research, vacancy rates will be nil in Brisbane, Perth, and Adelaide by 2023.
While the return of international students was “excellent news” for providers who were badly hit during the COVID pandemic, the Council’s executive director Torie Brown warned that greater accommodations were required.
We’re currently facing a supply problem since there aren’t enough new buildings opening in the next two years, she explained.
Advocates fear that the housing situation may expose international students to exploitation.
Some students in China, according to Joy Xu of the UTS Students’ Association, pay hundreds of dollars for private rental inspection services provided by individuals on Chinese social media.
Students paid the individual to take pictures and videos of rentals, according to the woman.
“This might potentially enhance the likelihood of fraud and frauds, which worries me.
“International students don’t have a local network of friends. They are ignorant of their legal and tenancy rights.”
In order to “enable the safe return” of international students, Universities Australia announced it was collaborating with the federal government.
According to Catriona Jackson, chief executive of Universities Australia, “universities are continuing to support students by giving information on lodging possibilities before they arrive in Australia.”
We urge any student having trouble finding housing or under financial strain to ask their university for help.
Vicki Thompson, the chief executive of the Group of Eight universities, said that any students requesting exemptions from the ban will be provided with letters of support.
Although some universities had reserved student housing in advance, she conceded that this would not be sufficient to meet demand.
Given the short notice and the time of our semesters, she remarked, “We want our kids back on shore and in campuses, but that makes it incredibly tough.”
“Our kids’ return is a top priority, and when they do, we want them to have a place to actually sleep each night.”
