International student migration continues to play a critical role in Australia’s economy and property market.
Mike Zorbas (pictured above), CEO of the Property Council, highlighted the importance of this connection following Federal Education Minister Jason Clare’s decision to allow 270,000 international student commencements in 2024, bringing student numbers back to around 2023 levels.
“It should not have come to this,” Zorbas said, reflecting on previous discussions of deeper cuts to student numbers.
Higher education is Australia’s fourth-largest export, valued at $48 billion.
“Universities directly boost property employment, stimulate cities, and educate our sector,” Zorbas said. “Overseas university students will likely be future leaders and business partners of ours in their own nations.”
This sector’s impact extends beyond education, directly influencing property demand, especially in areas close to universities and central business districts.
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As Australia’s international student population grows, Zorbas pointed to a critical need for more purpose-built student Accommodation (PBSA) to address the housing shortage.
“PBSA buildings across Australia were full in 2023,” Zorbas said, underscoring the importance of scaling these developments.
The Student Accommodation Council’s April report showed that international students only make up 4% of the rental market, reinforcing that the real issue is Australia’s long-term undersupply of housing.
“The debate over international students isn’t about student numbers; it’s about housing supply,” Zorbas said. “Punishing universities only distracts from the broader issue, which is the failure of successive governments to prioritise housing supply.”
To support housing demand, Zorbas called for several steps to unlock PBSA development, including:
Removing state government foreign investor taxes
Ensuring local government planning decisions are pro-PBSA
Aligning PBSA with build-to-rent policies for fairer tax and planning treatments
Updating Residential Tenancy Acts to reflect PBSA’s unique needs
Zorbas urged policymakers to shift from a populist debate on international students to a more practical “pro-supply, pro-PBSA mindset.”
He warned that failing to act could harm Australia’s $48 billion higher education industry, stating, “Our golden goose is cooked if we don’t act.”
Zorbas also encouraged members of the Property Council to actively participate in shaping policies through the PCA’s committees, which are involved in policy, advocacy, and research.
“Joining a committee is a way to expand your network, expertise, and help shape the future of the industry,” Zorbas said.
By addressing the housing challenges tied to international student migration, Australia can continue to benefit from this important sector while supporting long-term property growth.
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