Key Points
- International students from India scramble to find places to live in Australia.
- Rising rental prices and lack of properties behind Australia's accommodation crisis, says expert.
- India drives surge in student visa applications to Australia.
Prajjwal Singh is one of the thousands of Indian students looking for accommodation in the most overheated suburbs of the nation’s capital cities.
This is at a time when rents have soared by 17.6 per cent for units and 14.6 per cent for houses across capital cities over the past year, according to the latest Domain Rent Report.
The 24-year-old student from Uttar Pradesh in north India, who is flying to Melbourne to pursue a postgraduate degree in Information Systems, says he feels anxious about finding a place to stay that fits his “tight” budget.
Prajjwal Singh is an international student from India. Credit: Supplied
“I am on a tight budget and want to make sure that I get the most value for my money while still having access to the amenities and support that I need to succeed in my studies,” Mr Singh tells SBS Punjabi.
International students battle high rental prices
Prabhjot Singh, real estate agent. Credit: Supplied.
The soaring rents in Melbourne and Sydney can be attributed to a lack of available properties for rent, especially in the CBD and suburbs which house major universities. The demand is so high that properties barely stay in the market for a few days.Prabhjot Singh, real estate agent
Australia received a record number of offshore student visa applications following the removal of travel curbs imposed due to the COVID-19 pandemic, of which India emerged as the top source in the last six months of 2022.
Mr Singh says this unprecedented uptick in the student numbers from India, including the 40,000 students expected to return from China, would further squeeze the already tight rental market in Victoria and other major states.
“If you consider Indian students, they mostly look for shared homes around their universities over purpose-built student accommodation because they can divide the costs among peers. But the issue is that while shared homes are available in Melbourne, they are no longer affordable, particularly in 2023 when rents have skyrocketed,” he says.
Sambhav Lakhani Credit: Supplied
The 18-year-old, who will be living in a shared house in one of the city’s eastern suburbs, says he took whatever he could get last minute to get his foot in the door.
“I wanted to stay in an apartment over a purpose-built student accommodation (PBSA) because I could share the costs with other students. But, unfortunately, PBSA was turning out to be more expensive, plus I had little choice given there’s hardly any time left before the first semester begins,” he says.
Mr Singh says the rental crisis further deepens for international students because they have no previous rental history, have less affordability and prefer to rent properties for shorter durations, putting them at the bottom of the “preferred tenants list”.
What’s the solution?
International students are facing rental issues in Australia. Image for representation only. Source: Getty / Getty Images
She said overseas students wouldn’t have to compete in Australia’s tight rental market if they preferred to stay in PBSA.
“We would like to see that number grow so that international students arriving in Australia aren’t made to compete in the tight rental market and have more choice when it comes to safe, professionally managed and vibrant student-focused living close to where they study,” she told SBS Punjabi.
Ms Brown added that the Australian government needs to prioritise the development of a new PBSA so that international students have a range of options when they arrive in Australia.
Governments at all levels in Australia need to incentivise the growth of student accommodation by removing barriers like foreign investor taxes and cumbersome planning processes, which slow the development of new buildings.Torie Brown, Executive Director, Student Accommodation Council
Can the rental crisis deter international students from coming to Australia?
International Education Association of Australia CEO Phil Honeywood. Credit: IEAA
“International students can live in shared accommodations, or tap into the wonderful migrant diaspora that we have in Australia. We have a huge Indian Australian community, particularly in Melbourne. Then we also have a situation where homestay is becoming much more popular.
"I think in the ecosystem of accommodations, yes, it’s going to be tight. But, still, it will not deter international students from coming here, particularly with the UK almost closed because of the accommodation crisis in contrast,” he said.
