As an inner-Sydney rental property owner, you are most likely fully aware of the impact that the Covid-19 pandemic has had on both rental revenue and vacancies. However, this is likely to change in the not-too-distant future.
If you’ve been seriously thinking about whether to sell your inner-city apartment, we recommend that it would be more prudent to hold onto your investment as students and young professionals start to return to the city and look for both long-term and short-term accommodation in inner Sydney.
International students will return to Sydney
The New South Wales Government has announced a pilot program that will see around 250 international students returning to study in Sydney every fortnight. This was expected to start in July; however, the latest lockdown has stalled this for a few weeks.
Rest assured, though, that student accommodation will once again be in demand in inner-Sydney suburbs ‒ especially for those properties that are in close proximity to top universities.
Remember too, that many of these international students have already started their degrees and most of them will want to finish them before their visas expire.
In addition, we’re seeing confidence in the future for student accommodation, with a new 17-storey student accommodation tower in Chinatown recommended for approval.
Demand from students and young people from regional Australia
Rural students also prefer rental accommodation close to their chosen university. And despite a flight to regional from established families in the cities, many young people will still choose to seek their fortunes in the Big Smoke.
As you may be aware, the property market is currently booming and there are a lot of people from suburban neighbourhoods that are making a sea or tree change. In fact, many rural properties are being snatched up before they even hit the market.
But, what does that mean for young adults who want to start a university degree or who seek broader employment opportunities? While many of these students may have stayed in the family home in the outer suburbs and commuted on a daily basis, they certainly won’t want to commute long distances if the family has moved to a regional city or rural town. They’re going to be looking for accommodation close to the most vibrant areas of Sydney and for most, that means inner-Sydney.
Renting to students in the Inner West and the Eastern Suburbs
So, what areas will be most attractive to students returning to universities? Here are some of the areas that will be in high demand for students looking for rental accommodation:
- Ultimo, Glebe and Forest Lodge. These suburbs are close to the University of Sydney and the University of Technology.
- Apartments in Darling Harbour and Chinatown. These areas are attractive to Chinese students who will be attending Sydney University and the University of Technology. There are also many language schools in the city.
- Surry Hills and Darlinghurst. These areas are close to Charles Sturt University and Notre Dame University campuses as well as St Vincent’s teaching hospital.
- Randwick and Coogee. These suburbs are ideal for medical students who will be studying at the University of New South Wales and the Prince of Wales teaching hospital. Plus, many of the staff working in this hospital may be looking for short-term accommodation.
Inner-Sydney rental properties: hold or fold?
If you’re a rental property owner and have an apartment or other rental property in or near any of these areas, you can’t go wrong if you hold onto your property, especially if your property is suitable for students. Remember that a property with multiple bedrooms can accommodate more than one student and this could increase the rental return that you can expect.
How Vogue Property can help
If you’re concerned about the best way to get your property leased, please contact us at Vogue Property. Our property managers have plenty of experience renting to students and can take care of all the details for you. We’re confident that we can rent any property to quality tenants.