Further pressure on rental market from Chinese students returning to Adelaide to complete degrees

Adelaide’s tight private rental market is facing further pressure from hundreds of Chinese students being ordered to return to finish their degrees.

Hundreds of Chinese students ordered to return to Adelaide to finish their education will put further pressure on the state’s stressed rental market, say property industry leaders.

South Australian universities are expecting 1800 students to come back from China after they were told their degrees would not be recognised if they were completed online.

The Chinese government decree has left 40,000 students who returned home during the pandemic scrambling to get back to Australia before universities start next month.

Property Council SA executive director Bruce Djite said the situation highlighted the need for more purpose built student accommodation within the CBD.

“We welcome the return of international students to Adelaide,” he said.

“They are valued members of our communities and contribute a great deal to our city’s culture, vibrancy and economy.

“But there are inevitably going to be challenges with housing such a sudden influx of people during an already tight rental market.”

Property Council SA executive director Bruce Djite. Picture: Tom Huntley

Mr Djite said Adelaide’s student accommodation market “is already at full capacity”.

“This means demand will be driven into the private rental accommodation market where rents have already climbed and vacancy rates tightening,” he said.

Student Accommodation Council executive director Torie Brown said there were 6700 purpose-built student accommodation beds in Adelaide.

“We would like to see that number grow,” she said. “With students scrambling to return earlier than expected, we will see student accommodation full in many markets, including Adelaide.

“This will put pressure on rental homes as students look elsewhere for places to live.”

The Chinese government announcement about students completing their degrees offshore. Source: Twitter

Ms Brown said governments at all levels needed to prioritise the development of new student accommodation.

“It provides appropriate housing exclusively for students and stops them competing with mums and dads in the rental market,” she said.

“Expedited planning approvals, removing taxes like foreign investor fees and planning systems that prioritise student accommodation close to places of study should all be a priority for policy makers.”

Ms Brown said a report released late last year showed there were 14 students for every available bed in purpose-built accommodation in Adelaide, with one quarter of students coming from China.

Adelaide’s rental vacancy rate in December was 0.4 per cent, the lowest of any capital city in the country.