OPENING BORDERS TO 200,000 INTERNATIONAL VISA HOLDERS TO INCREASE DEMAND ON ALREADY BOOMING HOUSING MARKET

Australia’s government announced last week plans to open borders to more than 200,000 skilled workers and international students, allowing them to enter the country with new exemption-free visas. These temporary measures are part of efforts to ease the current labor shortages and jumpstart the tourism industry before 2023.

The industry that has struggled the most with labor shortages is healthcare. Since the start of the Covid pandemic in February 2020, job vacancies in the healthcare industry rose 72%, with 51,200 openings reported in August of this year.

Further, there were 200,000 fewer international students studying at Australian universities than there were two years ago when it was estimated that foreign students brought $40 billion into the country. In addition to the new visa rules, the government is investing an estimated $37 million in programs to encourage international student enrollment.

Government figures show that there are about 235,000 eligible visa holders who would be free to travel to Australia under the eased restrictions, including 162,000 international students.

By comparison, there were 509,600 overseas migrant arrivals in the year before June 2020. The new reforms allow for multiple-year stays and pathways to permanent residency.

Currently, there are over 7.6 million migrants living in Australia, with nearly 29.8% of Australia's population born overseas.

Healthcare and Education visas will drive urban property prices higher

Experts predict that if the country reaches the goal of welcoming more than 250,000 new migrants by 2023, house prices could jump an additional 5% and rents would lift about 7%. (Source: ABC: Housing is expensive now, imagine a market with more migrants)

“With the focus on students and healthcare workers coming from overseas, it is likely that the population shift will be mainly concentrated in urban areas and Central Business Districts,” says Matt Sully, CEO of APFG. “Our investing clients are looking for options for apartments and co-living arrangements near hospitals and universities.”

Melbourne welcomed the most migrants in the year before the borders closed, with an annual net gain of 56,083 arrivals, followed by Sydney, 50,083.

In Melbourne, the demand for healthcare workers will reach new heights with the build and opening of the new Footscray Hospital in 2025, with more than 500 beds. It’s expected to add thousands of jobs for construction, planning, medical, and emergency staffing.

Also in Footscray, the Victoria University campus currently has 49,000 international students enrolled but remain overseas until visa restrictions are lifted. The university hopes to welcome those who meet vaccination requirements back, starting in January 2022.

“Footscray is coming up in the ranks for Melbourne property, where nearly 70% of the market is renters,” says Sully. “The new push for immigration by the government will keep the pressure on the rental market, with thousands of healthcare workers and students coming in the next few years.”

Liberty One, Footscray

Overlooking Flemington Racecourse, with unobstructed views to the North, lies the Liberty One by Bensons Property Group. Currently, the project is offering an unbeatable opportunity for investors and property buyers - a 25-year rental guarantee.

“If you had invested in a property in 1996, imagine not having a single week or month of rent not paid for the last 25 years,” says Sully. “This guarantee also eliminates all risk.”

Liberty One is an exclusive collection of 375 elegant inner-city apartments, with all the modern benefits and atmosphere of urban living.

In a neighbourhood that’s perpetually buzzing with activity, Liberty One residents can rest and recharge on the private rooftop recreation area, which includes its own open-air yoga space, meditation zone and gymnasium.

Contact the team at APFG for more information on Liberty One, and other opportunities for cash-flow positive properties and smart investment strategies.