Student Accommodation Investments in Victoria have become an increasingly attractive opportunity due to the state’s thriving education sector. With a high concentration of both domestic and international students choosing Melbourne, as well as regional hubs like Geelong and Ballarat, the demand for quality student housing is stronger than ever. As a result, now is the perfect time to explore this niche yet high-demand property segment for investment.
In this blog, we’ll break down the best areas in Victoria for student accommodation investments, highlight the key benefits of entering this market, and explain how Quantum Buyers Agents can help you make the right investment move.
Why Invest in Student Accommodation?
Student accommodation offers several compelling advantages for investors. First and foremost, it provides consistent demand, as international student numbers in Victoria continue to rise. For instance, in 2023, around 235,000 international students chose to study in Victoria, contributing significantly to the state’s economy.
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Moreover, student housing offers high rental yields, with returns often ranging from 5% to 8%, which is substantially higher than the yields you might expect from traditional residential properties. Thus, it becomes an appealing option for investors seeking strong returns.
Furthermore, student accommodation is recession-resilient. Even during economic downturns, education remains a top priority, and demand for student housing typically rebounds quickly after a crisis.
Lastly, properties that are purpose-built for student accommodation, or those located near campuses, experience low vacancy risk, which ensures a steady income stream for investors. In other words, the potential for long-term, stable returns is high. Smart Property Investment+3Study Melbourne+3On Property+3
Top Locations in Victoria for Student Accommodation Investments
If you’re considering entering the student housing market, here are some top-performing areas to consider for your next investment:
1. Carlton (Melbourne) – University of Melbourne & RMIT
Carlton is widely regarded as the epicentre of student life in Melbourne. It is home to the University of Melbourne and is just a short walk from RMIT. As a result, demand is consistently high, particularly for apartments, studios, and shared housing.
Why it works: The area’s proximity to universities, along with vibrant cafes, trams, and Lygon Street nightlife, ensures strong appeal for student renters year-round. Therefore, if you invest here, you’re likely to benefit from consistent rental demand.
2. Clayton – Monash University
With over 30,000 students at Monash University’s Clayton campus, this suburb presents tremendous potential for investors. In fact, multi-bedroom townhouses or co-living properties are an excellent choice for maximizing rental income. Moreover, ongoing development and infrastructure improvements ensure Clayton’s potential for long-term growth.
Hot tip: Properties within walking distance of the Monash shuttle bus stops tend to attract extra rental interest. Consequently, they’re likely to generate higher returns.
3. Footscray – Victoria University
Footscray is experiencing a major transformation, thanks to its improved transport links and the growing popularity of its diverse community. As a result, the area has become an attractive destination for students attending Victoria University. In addition, the proximity to the university makes it a desirable location for student renters.
Investor insight: To optimise your return on investment, consider dual-occupancy homes or properties with granny flats in this emerging hotspot. Such properties have the potential to generate higher yields compared to traditional single-tenancy homes.
4. Geelong – Deakin University (Waurn Ponds & Waterfront)
Regional Victoria is quickly gaining momentum, and Geelong is leading the charge. With strong enrolments at Deakin University, it’s no surprise that investors are showing great interest in the area. While property prices are generally lower than in Melbourne, rental returns remain strong, making it an attractive option for savvy investors.
What to watch: Keep an eye on properties near the Waurn Ponds campus or along key bus lines that lead into the city and waterfront areas. These locations tend to have the highest demand for student accommodation.
5. Ballarat – Federation University
As housing affordability in Melbourne continues to tighten, regional centres like Ballarat have become increasingly appealing for investors. Federation University’s growing student population and Ballarat’s easy access to Melbourne via public transport make it an attractive option for hybrid commuters.
Best property types: Consider renovated homes or low-maintenance duplexes that are located near the university and town centre, as these tend to offer the best potential returns. By investing in these properties, you’ll likely see strong demand from students seeking convenience.
What Makes Student Accommodation Investments Successful?
To ensure success in the student accommodation market, several factors should be taken into account. These include:
- Proximity to campus or transport
- Internet connectivity and utilities
- Low-maintenance, secure properties
- Furniture packages or turnkey setups
- Professional property management that understands student needs
In short, success in this market requires careful attention to property selection and consideration of the student lifestyle. Therefore, always choose properties that cater to student needs, as this will result in more consistent rental income.
How Quantum Buyers Agents Can Help
At Quantum Buyers Agents, we specialise in identifying high-yield investment opportunities, including purpose-built or strategic student accommodation. Whether you’re a first-time investor or looking to expand your portfolio, our expert team will:
- Conduct comprehensive research into student-centric suburbs based on your goals and budget
- Provide due diligence on potential properties
- Negotiate on your behalf to secure the best possible deal
- Offer insights into property management and strategies for attracting tenants
- Help you navigate financing options through our trusted broker network
Ultimately, student accommodation can be a profitable and stable addition to your investment portfolio—if you make the right decisions in terms of location and strategy.
Ready to Invest Smarter?
Let Quantum guide your next move. Schedule your free strategy session today at quantumbuyersagents.com.au, and discover how we can help you secure high-performing student accommodation in Victoria.
