The recent influx of international students has attracted many Asian hospitality operators towards Melbourne CBD’s northern precinct, according to specialist property company The Leasing Agency.

Aside from the rising number of students, there are also the ongoing development of high-rise apartment buildings and an enormous daily visitor population in the area.

This reflects a strong level of confidence in the market, similar to that prior to the Covid pandemic, said Terence Yeh, MD of The Leasing Agency.

“As the residential vacancy rate for CBD apartments reaches new lows and student numbers grow, our business has had multiple approaches from hospitality groups looking to expand their operations into the CBD’s northern end.

“A large number of these groups held off their expansion plans for several years and this has caused a backlog that has now entered the market in full force.”

Study Australia data shows international student enrolments across Victoria numbered 182,000 in January, up 20 per cent year on year. The CBD is also estimated to have an average of more than 850,000 daily visitors.

Yeh added The Leasing Agency had negotiated seven new leases, including off-market deals, in the last three weeks across the mid-city to northern precincts of the CBD with more in the pipeline.