The Arrival of International Students Boosts the Australian Economy

Undoubtedly, international students are a significant driver of the Australian economy. In 2019, international students contributed nearly $40 billion to the country’s GDP. Their sudden departure during the pandemic hit the Australian economy hard. With fewer international students enrolling in universities, there was less money spent on rent, tuition, and other associated costs. This had a knock-on effect on businesses in many different industries, from retail to hospitality.

However, now that international students are starting to return to Australia, these businesses are also beginning to rebound. International students tend to spend a lot of money on goods and services while they’re studying abroad. So, as more and more of them return to Australia, we can expect to see a corresponding increase in economic activity. This is good news for property investors, as a strong economy usually indicates a healthy housing market.

An Increase in International Students Could Lead to an Increase in Rental Properties

With more international students comes more demand for housing. And when demand outstrips supply, we often see an increase in rent prices. With the Australian market already in a profound housing crisis, the need for more properties to accommodate the influx of students indicates the coming years will remain vital for housing demand and returns in general for the property market.

Investing in student accommodation is one way to take advantage of the return of international students. Another way that property investors can benefit from this is already starting to happen in some parts of Australia where there has been a recent influx of international students.

The return of international students to Australia is good news for the economy as a whole. However, it’s also likely to lead to an increase in rent prices in many of the country’s major cities. For property investors, this presents both risks and opportunities. Those who own rental properties will be able to capitalize on the rising demand for housing. However, they’ll also have to contend with higher operating costs and may find it challenging to find reliable tenants going forward. As always, it’s essential to do your research before making any decisions about investing in the Australian property market.