New Delhi & Bengaluru: Soaring accommodation expenses driven by a surge in prices are dashing the hopes of many aspiring students, as reported by several study abroad consultants.
The cost of accommodations in Australia has spiked by almost 15% for shared rooms or dormitories in the recent quarter, according to the latest data exclusively disclosed to ET by University Living, a global platform for student housing. India, with a student population of 120,000, represents the second-largest group of international students in Australia.
“Housing expenses have significantly risen, putting a strain on many students’ finances,” noted Sumeet Jain, the co-founder of Yocket, an online portal for international education.
Recent regulations in Australia now mandate a specific amount to be maintained in a student’s bank account for living expenses. “This is exacerbating the challenges for students,” added Jain.
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Starting from March 23, the Australian government has implemented stricter regulations to control the influx of migrants.
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“The rates for shared rooms or dormitories in Australia have surged by 14.6% to AUD 329 per week over the past year,” stated Mayank Maheshwari, the chief operating officer and co-founder of University Living. Recent government data reveals a 5% decline in student visa approvals in Australia, affecting students from countries like India, Nepal, and Pakistan the most. Australia’s net migration was projected to peak at 510,000 in 2022-23. However, with the latest announcement, the aim is to reduce the annual intake to 250,000 by mid-2025, aligning with pre-pandemic levels. The adjustments include English language proficiency requirements, the introduction of a “genuine student test,” and modifications to unrestricted work hours.
Experts have pointed out excessive immigration in Sydney and Melbourne during 2010-15. “Much of the current situation stems from discussions that began pre-Covid when the housing crisis was emerging,” remarked Akshay Chaturvedi, the founder & CEO of Leverage Edu.
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Furthermore, in recent years, there has been a proliferation of “bad character programs and diploma mills” that lack legitimate post-study work opportunities, he added. “Hence, this overhaul of the system was essential,” emphasized Chaturvedi.
Adarsh Khandelwal, the co-founder of Collegify, highlighted that the stringent regulations aim to deter low-skilled labor. “Australia is grappling with a housing crisis, impacting the economy,” Khandelwal stated.
The Australian government’s objective is to combat the misuse of student visas and address the housing challenges in urban areas, experts suggested.
“The international student market might witness a slight downturn this year due to policy changes in Canada, the UK, and Australia, primarily affecting non-genuine students. Genuine students need not worry,” reassured Piyush Kumar, regional director- South Asia and Mauritius, IDP Education.
The housing crisis in Canada has also posed difficulties for international students, with affordability being a major concern.
“Similar housing challenges in countries like the US, New Zealand, and the UK could potentially impact international students,” noted Amit Singh, founder of ASL (UniScholars, UniCreds & UniAcco).
Singh added that the housing crisis could lead to missed opportunities for Indian students.
All study abroad consultants interviewed by ET supported the governmental measures in Australia and Canada, aiming to restrict the immigration of low-skilled individuals masquerading as students.
A student en route to Australia for studies expressed unwavering determination despite the changes.
“My admission to Monarch University, my dream institution, remains unchanged. I believe these changes will actually benefit genuine students applying to Australian universities,” shared the student, who opted to remain anonymous.