Student renters the key to buffering investment downturn: AC Property

Student renters the key to buffering investment downturn: AC Property
Student renters the key to buffering investment downturn: AC Property

AC Property has earmarked the sales potential of student renters from China.

It suggests developers and agents can build a database of potential sales contacts that will buffer any property market downturn.

New research from AC Property shows that 56 percent of rental enquiries from these students request property purchasing information within seven months.

Esther Yong, director of AC Property said such figures suggest most Chinese student renters are already planning to buy a property when they first make a rental enquiry and she believes these rental enquiries may not only contain your next biggest sales lead, but could build a database that will ride you out while other investors wait for further policy changes before deciding their next move. 

"More foreign investment policies and lending restrictions have recently been imposed to deter foreigners from buying Australian properties, sparking concerns on property sales within the real estate industry," she said.

"One might expect this to result in slowing interest in property investment from overseas investors in the short term. However, let’s not forget the other groups of buyers who have stronger reasons to purchase properties in Australia, beyond building a wealthy portfolio – education and migration.

"While one might question their financial capability in purchasing properties, most Chinese students would still be receiving financial support from their families. Our survey shows that, a family will spend an average of $50,000 a year to support their studying child in Australia. Of these families, more than 85 percent are interested in receiving information about new development projects near their child’s university.

"Anecdotally, owning property, rather than renting, is also one of the highest priorities for a Chinese family.

"Therefore, It is not unusual to expect a well-financed Chinese student renter looking to buy shortly after they sign their rental contract."

Tags: 
Residential Sales Chinese Students

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