Published
August 22, 2023
Melbourne, renowned for its rich culture and vibrant lifestyle, is also home to some of the world’s top-ranking universities.
As revealed in the recent article from The Australian Financial Review, we aim to discuss how Melbourne’s top performing Universities can fuel property interest from locals and internationals alike.
Factors Driving Greater Residential Property Development
Melbourne’s property development boom can be attributed to a multitude of factors, making it an attractive investment hub for both developers and investors. These factors include:
The City’s Strong Economy
Melbourne boasts a robust economy that has consistently attracted businesses and professionals from around the globe. This economic strength provides a solid foundation for property development, as it ensures a steady demand for housing. High-income jobs and business opportunities continue to draw individuals to the city, creating a need for both rental and ownership housing options.
The Growing Population
The city’s population is steadily increasing, driven by both domestic migration and international immigration. Melbourne’s diverse and inclusive culture has made it a magnet for individuals seeking better opportunities and a high quality of life. This population growth has led to an uptick in demand for housing, further fuelling property development.
Demand for Rental Properties
Melbourne’s status as an educational and business hub has led to a growing demand for rental properties. With thousands of students and professionals flocking to the city each year, developers see an opportunity to meet this demand. This has led to the construction of purpose-built student accommodation and high-end rental apartments, catering to different segments of the market.
The Government’s Investment in Infrastructure: The government of Victoria has recognised the importance of infrastructure development in meeting the needs of a growing population. Investments in transportation, education, healthcare, and other amenities have made Melbourne an even more attractive destination. These developments not only improve the overall quality of life but also contribute to the appeal of various neighbourhoods for property investment.
Melbourne’s Surge in International Students
Melbourne’s prestigious universities, including University of Melbourne which was recently the top ranked in the country and 32 globally, as well as the likes of RMIT University, and Monash University, attract a significant number of international students and scholars. In July 2023, the city was recognised as the best international student city in the country after the release of the global rankings. It also jumped a place in the world rankings, coming in fourth, behind only London, Tokyo and Seoul.
These students require accommodation, spurring the growth of student housing facilities and rental properties. Investors recognise the potential for steady rental income, and developers are eager to meet this demand.
Leading universities also bring research institutions, businesses, and professionals to the city. This symbiotic relationship creates a thriving ecosystem that generates jobs and economic activity. As more businesses and research centres establish themselves in close proximity to these institutions, the demand for housing in nearby areas surges, driving property development.
Property developers are more likely to invest in areas with a strong university presence due to the steady influx of students and faculty members, which ensures a consistent demand for housing.
Several notable property development projects have emerged in Melbourne, both indirectly and directly due to some the city’s top-ranking universities:
University-Centric Apartments
In the heart of Melbourne’s CBD, you’ll find an array of high-rise apartments tailored to students and professionals. These apartments offer convenient access to top universities, reflecting the demand for housing close to educational institutions.
Purpose-Built Student Accommodation
Melbourne has seen a surge in purpose-built student accommodation complexes. These state-of-the-art facilities provide a secure and comfortable living environment for international and domestic students, meeting the specific needs of this demographic.
Innovation Hubs
As universities expand their research capabilities, innovation hubs and business parks are emerging in close proximity. These hubs foster research collaborations and entrepreneurial endeavours, attracting professionals who require housing nearby.
Build-to-rent apartments
Build-to-rent is a relatively new model of urban housing development. Build-to-rent apartment complexes are designed and constructed by developers who retain ownership of the building when it’s complete. The apartments are then rented out to tenants by the developer, which also manages and maintains the complex.
Melbourne already has the country’s largest number of BTR units, and according to an article by the Australian Financial Review, it is anticipated that of 52,500 completed BTR homes nationally by 2030, 30,000 would be in Melbourne.
Mixed-use precincts
Mixed-use precincts offer more than just a place to live. Instead, they are a microcosm that typically include a range of in-house amenities available exclusively to residents, retail spaces, cafes and restaurants, service-based offerings such as medical and hairdressers, as well as green spaces. These are especially appealing, as everything is within easy reach of residents, without the need to travel via car or public transport.
Read more: International students are applying for Australian visas in record numbers
Key takeaways
Melbourne’s top ranking universities have undeniably played a pivotal role in driving residential property development within the city. The strong economy, growing population, demand for rental properties, and government investments in infrastructure all contribute to the thriving property market. Moreover, the influx of international students and scholars, alongside the economic opportunities generated by universities, creates a virtuous cycle that fuels further development.
In light of this, Far East Consortium is committed to contributing to Melbourne’s property development scene. We recognise the importance of providing high-quality residential developments that cater to the diverse needs of the city’s residents, whether they are students, professionals, or families. As Melbourne continues to evolve as a global educational and economic hub, FEC remains dedicated to delivering exceptional residential properties that meet the ever-growing demand.
Join us in shaping the future of Melbourne’s real estate landscape. Register your interest today.
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