The peak body for Australia’s property industry has told the Federal Government the wider property market will not recover in the short-term without an influx of international students and permanent migrants.
CEO Ken Morrison told The Australian student accommodation underpinned several markets and there was no reason why – depending on the health advice – that Australia couldn’t resume overseas migration and international student visas.
“You have student accommodation which is directly reliant on offshore student visas and then often the families will buy a unit or an apartment here for the student. That leads to other investments in property,” he said.
“A transition back into normal migration growth that’s safe for Australians will be key. It will be very hard to recover in the near term without it.”
Uncertainty in the property market damages confidence for all which will hit RADs with family homes not sold and nest eggs held firm.
Australia is expected to face an 85% fall in net overseas migration in 2021 thanks to the border closures imposed by the Government to prevent the spread of coronavirus.
But the property and construction peaks warn the resulting hit – which has already seen new homes sales drop to their lowest levels since 1991 – could lead to a significant decline in building and construction.
This in turn has flow-on effects for retirement villages and land lease communities, which rely on new residents selling the family home to move in.
But as we covered in The Source this week, demand for villages continues to grow 37% year on year.
Can village marketers tap into that demand?
