Increasing number of renters from overseas could boost property market

As more people begin to arrive into Australia from overseas, property investors have been watching the market carefully. Since the pandemic period, rental demand has softened in some CBDs with fewer new visitors coming to the country.

The pre-COVID rental market was strong by comparison, with Australia seeing some 1.8 million overseas arrivals per month from 2015-2020. Many new arrivals end up renting in central city locations. SQM’s data suggests that a lot of property investors now are more optimistic about the market picking up considering that now as more new people show up.

The question is, is the market likely to improve? Well, the rental market is bouncing back after a two year struggle, based on ABS data. People are coming to Australia to study, live or work temporarily. In fact, overseas arrivals totalled 195,760 through December (up from 34,670 arrivals in December 2020) and initial estimates suggest the number was higher still for January. ABS data also shows that total arrivals in the country began increasing weeks earlier. Majority of these arrivals are international students, permanent residents and Australian citizens that were welcomed back.

Looking at the rising numbers of visitors this early this 2022, there’s a chance the rental market might improve. From the 21st of February 2022, the Australian Government opened the borders and welcomed back double-vaccinated tourists and visa holders from around the world. So one might assume more arrivals could mean more renters and therefore greater demand in the market for landlords.

Popular tourism destinations like Sydney, Melbourne, Brisbane, Cairns and regional Tasmania have seen increased rental applications, meaning property owners in these areas will benefit. This should mean a lift of occupancy rates and revenue across the short-term accommodation rental market and commercial accommodations.