The Daily Mail reported that Australia's reopening of the border today for international students and skilled migrants, coupled with Australia's attractiveness to Chinese buyers, is expected to rise again in urban areas close to the city center.
Real estate company Juwai IQI said that international students have been admitted to Australia for the first time in the past 2 years, and it is expected that many Australian housing markets represented by Sydney will benefit from this.
Georg Chmiel, chairman and co-founder of Juwai IQI, said buyers were likely to be in high demand for Sydney's Inner West, North Shore and Inner South in 2022, with potential Chinese buyers particularly interested in apartments.
"When international students return to Australia, some urban areas that have been hit hard by housing prices during the epidemic will be re-favored. International students still value the locations they favored before the outbreak. ”
Chmiel said: "There are more students from China than any other country. 29% of foreign students are from China, which is almost the sum of the next 3 countries. ”
From 15 December, fully vaccinated international students are allowed to enter Australia. Previously, due to the impact of the Omicron epidemic, Australia's reopening of the border was delayed by two weeks.
New data from SQM Research shows that even before the return of international students, the vacancy rate for Sydney rentals fell from 3.5 per cent to 2.6 per cent, but this is still above the capital city average (1.5 per cent).
Perth, Adelaide, Darwin, Canberra and Hobart all have rental vacancy rates below 1%. Melbourne has the highest vacancy rate at 3.2 per cent, more than double Brisbane's 1.3 per cent.
Louis Christopher, general manager of SQM Research, said tenant demand for Sydney apartments would surge by next year.
"It is clear that large properties are more favored after the outbreak of the epidemic, and there is no sign of reversing this situation at present. However, I believe that in 2022, more and more people will favor apartments. This is because apartments are more affordable, and newcomers will prefer apartments as in the past. ”
Currently, rents for single-family homes in Sydney and Canberra are very close. In the week ended 12 December, the median weekly rent in Sydney was $734.4, compared to $734.5 in Canberra.
However, apartment rents in Sydney are much lower, at $475.30 per week, compared to $529.9 in Canberra. Apartments in Darwin rent $458.30 a week and Hobart $434.70. Apartments in Melbourne rent $372.70 a week.