Is Your Child Heading to Study in Melbourne?

09-Sep-2024

Is Your Child Heading to Study in Melbourne?

If you’re planning to send your child to study abroad, particularly in Melbourne, this article is for you. 


I know you want the best for your child: quality education, a vibrant city, and a world of opportunities. But before you make any decisions, read this first.


The Australian government has announced a cap of 270,000 international students starting in 2025.


What does this mean for you as a parent and an investor? 

How will this affect your child's education and your potential property investments in Melbourne?

In this article, we'll dive deep into what this cap means for international students, especially Singaporeans and global investors like you, who are looking for property in Melbourne. 

We'll also explore how this affects the property market and why you should consider investing now before it’s too late.

Is There Really a Need for Concern?


At first glance, hearing about a cap on international students might make you worry. 

"Will my child be able to secure a spot at a Melbourne university?" or "What about rental demand—will my investment suffer because fewer students are allowed into the country?"

Here’s the good news: there’s no immediate reason for concern

While the cap does exist, the current market conditions show minimal impact. Melbourne’s rental vacancy rate is sitting at just around 2%, which means the demand for housing is extremely high—not just from students, but from a wide range of tenants, including young professionals, families, and immigrants. 

The competition for rental properties remains fierce, and Melbourne is still very much a hotspot for real estate investment.

Why should you invest now? 

Because waiting could mean losing out. The government’s cap is intended to manage demand, not eliminate it. In fact, all the signs point to Melbourne’s property market remaining robust due to its popularity not only among students but also among other renter demographics. 

If you wait, your child might face challenges in securing accommodation while you miss out on a lucrative opportunity to lock in a property at today's prices.

The 270k Student Cap: What Does It Really Mean for Investors?


While the cap on international students may seem like a limitation, the reality is that this move is designed to ease pressure on infrastructure and housing, not to harm the property market

Students will still flock to Melbourne, but the government's goal is to ensure that demand is spread more evenly and that infrastructure keeps pace. There is no evidence suggesting that the cap will lead to a significant drop in rental demand.

Even though the number of students might be managed, other tenant groups are growing steadily.

The property market is not solely reliant on students. Families, professionals, and migrants also make up a significant portion of renters, meaning the property market is not at risk of a sudden downturn due to this cap.

In fact, properties in student-heavy suburbs continue to see strong performance, particularly as rental yields remain stable.

Historical trends show that Melbourne has weathered changes in international student numbers without substantial damage to property values. 

Furthermore, Australia’s education sector remains a global leader, ensuring that Melbourne will continue to attract international students long into the future.

Your Child Accommodation: Don't Wait Until It's Too Late


Now, let’s talk about your child’s accommodation. With the cap in place, some may delay investing in a property, thinking the market will soften. However, this may leave your child scrambling to find housing closer to their enrollment date. 

The truth is, with only 2% vacancy, rental properties are being taken up fast, and you don’t want to be in a situation where your child has to rely on temporary solutions like hotels. While hotels are an option, how long can you realistically bear the cost and inconvenience?

Wouldn’t it be better to invest in a property now, securing a long-term space for your child’s stay while also building an asset that can generate rental income when they’re not using it?


Timing is Everything:
If you’re planning to send your child to study in Melbourne, the time to act is now. The cap will make getting into universities much more competitive. 

Having a property ready for your child not only secures their accommodation but also allows you to bypass skyrocketing rental prices once the cap takes effect.


Long-Term Investment in Education and Property: Melbourne is a top-tier education city, and investing in property there kills two birds with one stone. You’ll have a place for your child to live, and after they graduate, you can either sell the property for a profit or continue renting it out to future students. 

The potential return on investment is high, particularly as competition among international students will keep rental demand strong.

Why Investing in Melbourne Properties is Still a Hot Buy?


Melbourne remains one of the most sought-after cities for property investment, not only for rental yield but also for long-term capital appreciation. The city’s infrastructure, quality of life, and its global reputation as an education hub all contribute to its appeal. With a strong history of price growth and a high level of tenant demand, property in Melbourne is still a smart buy.

Even if you’re concerned about the cap on international students, remember that Melbourne’s property market has been resilient through fluctuations in student numbers before

What’s more, the Australian government is focused on managing infrastructure pressures to ensure that the city remains attractive for all renters, not just students.

The recent price correction in Melbourne's property market offers a unique opportunity for investors. After years of rising prices, Melbourne is experiencing a brief dip, but this won’t last. 

As property becomes more affordable in the short term, now is the perfect time to enter the market.

Imagine you buy a property today at a corrected price, knowing that in a couple of years, once the cap takes effect, demand for housing will surge again, pushing property values back up. You’ll be in a prime position to benefit from both capital gains and steady rental income.

Act Now Before it's Too Late!


If you’re thinking of sending your child to study in Melbourne or considering investing in property there, the time to act is now

Don’t wait for the market to heat up further or risk your child not securing accommodation. Buy now while vacancy rates are low and rental demand remains high

As an investor, securing a property in Melbourne today guarantees a stable, long-term investment that you can rely on.

Imagine the peace of mind you’ll have, knowing your child has a place to live while also growing your wealth through a sound real estate investment. Don’t let this opportunity pass you by.

Contact me today to explore your options in Melbourne’s property market. I’m here to help you navigate this exciting investment opportunity and ensure both you and your child secure the best future possible.