The Australian federal government has announced that international student numbers will be capped at 270,000 in 2025, marking a significant reform in the higher education sector, the Property Council reported.
Of these, 145,000 spots will be allocated to publicly funded universities, with vocational training institutions set to accept around 95,000 new students.
The cap aims to stabilise the number of incoming students while addressing the student accommodation crisis.
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The government will encourage universities to boost student housing capacity by 2026, aiming to benefit both domestic and international students.
“Minister Clare has recognised that to grow the amount of student accommodation in Australia we need to see the higher education sector partner with the private sector to increase supply,” said Torie Brown (pictured above), executive director of the student accommodation council.
Brown stressed the need for state governments to support accommodation development.
“Ridiculously high state taxes on international investors who build PBSA continue to be a handbrake on new development,” she said.
Brown urged states like Victoria and Queensland to remove taxes on student accommodation projects to encourage further investment and expansion.
The student accommodation sector remains heavily reliant on international students, who account for 74% of residents in purpose-built accommodation.
“The PBSA sector is reliant on a strong, sustainable pipeline of international students to underpin the viability of future projects,” Brown said. Without enough beds to meet future demand, the housing shortage could worsen, impacting the broader rental market.
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