(Good to be on ABC’s 730 last week on ‘last mile’ infrastructure: the vital connections unlocking new housing and city assets like logistics hubs and sheds. See it here.)
Following intense advocacy, Federal Education Minister Clare will allow 270,000 international student commencements next year. Depending on the definitions, this will bring international students at public universities to around 2023 levels. Much deeper cuts had been on the table. It should not have come to this.
Higher education is currently our fourth largest export at $48 billion. Golden goose size. Unis themselves directly boost property employment, stimulate cities and educate our sector. Overseas uni students will likely be future leaders and business partners of ours in their own nations.
Purpose-built student accommodation (PBSA), as represented by our Student Accommodation Council, should scale with the necessary and welcome growth of our unis.
The truth of the international student debate is simple.
We need more of that terrific PBSA rather than fewer of those brilliant, welcome and beneficial students. How do we know? PBSA buildings across Australia were full in 2023.
The Student Accommodation Council’s April report found international students at four per cent of the rental market. Even if students were temporarily twice that percentage of the rental market, the real problem is long term structural undersupply of housing.
Punishing our universities to excuse the failure of successive governments at all levels to prioritise a well-supplied housing market hurts all of us. And yes, of course the big unis are looking at their ultimate ‘right size’, something they are better placed to do than governments.
The key watch outs for any future ‘caps’ policy?
Overseas student sentiment about Australia is a super-tanker – slow to turn around
Undoing the patient work of decades, building overseas patronage and subsidy of our unis, is only going to cost Australian students more over time
The only sustainable solution? Unlock the development of more PSBA buildings in and around our CBDs in particular.
Among other steps:
Remove self-harming state government foreign investor taxes, noting this growing asset class is underpinned by overseas investment
Ensure local government planning decisions are pro PBSA
Bring the treatment of PBSA in line with build-to-rent, both are rental only asset types but attract very different tax and planning treatments
Improve Residential Tenancy Acts to reflect the unique needs of the asset-class.
Parliamentarians should move on from populism of the current debate to a pro-supply, pro-PBSA mindset.
Otherwise our $48 billion golden goose is cooked.
PCA Committees – get nominating!
2500 expert individuals sit on our terrific advocacy-shaping Committees around the country.
Today, wonderful Property Council members will receive an email on the competitive nominating process for our next intake of Committee members who will serve from 2025 – 2027.
Committees help shape the future of our industry. They work with our people on policy, advocacy, events, industry research, professional development and awards programs.
Joining a Committee is the way to expand your networks, your expertise and boost our winning advocacy efforts.
Happy nominating.
Next week: long term union reform