Governments must be careful with student numbers
Industry leader says help needed to 'build more dedicated student housing, not undermine investment needed to deliver it'.
AUSTRALIA risks choking off new housing supply, global investment and one of its most valuable export industries if governments use cuts to international student numbers as a substitute for housing policy.
This is the view of the Property Council of Australia after leaders from across the property, education and investment sectors gathered in Sydney for the Student Accommodation Council’s Future of the Sector: PBSA in Australia event
Discussions focused on the need for governments to boost PBSA (purpose-built student accommodation) supply targets and underlined the critical link between housing supply, international education, migration and investment.
Student Accommodation Council executive director Adele Lausberg said the debate over migration and international students was missing a critical point.
“Every student housed in PBSA is one less person competing in the private rental market,” Lausberg said.
“International students are increasingly being drawn into Australia’s housing debate but reducing student numbers does not create the housing supply Australia needs.
“If governments want to ease rental pressure, they should help us build more dedicated student housing, not undermine the demand and investment needed to deliver it.”
Australia has a pipeline of roughly 47,000 PBSA beds, 13,000 under construction and more than 21,000 with planning approval but no crane on site.
Lausberg said the opportunity was clear, investment will flow to the states where tax policies and tenancy reform are most favourable.
“Investors need certainty. That means competitive tax settings, fit-for-purpose tenancy laws, clear planning pathways and recognition of PBSA as a distinct accommodation class,” she said.
“Get those settings right and capital will flow, more student housing will be built and pressure will come off the rental market.
“Get them wrong and Australia will lose investment, lose housing supply and weaken an international education industry that supports our universities, jobs and economy.”
