Australia is set to implement stricter visa regulations for foreign students this week in response to record-high migration levels, a move expected to impact the rental market further.
Visa Rule Changes
Starting this week, Australia will impose tougher English language requirements for student and graduate visas, aiming to ensure a higher standard of proficiency. Additionally, the government will have the authority to suspend education providers found repeatedly violating regulations regarding international student recruitment.
Government’s Statement
Home Affairs Minister Clare O’Neil emphasized the government’s commitment to reducing migration levels while addressing flaws in the existing system. O’Neil stated that the forthcoming measures align with the migration strategy aimed at rectifying deficiencies inherited from previous administrations.
New Measures
A “genuine student test” will be introduced to deter individuals seeking to exploit student visas for employment opportunities. Moreover, “no further stay” conditions will be applied more extensively to visitor visas to discourage overstaying.
Impact on Migration
The recent initiatives follow a series of actions taken last year to revoke COVID-era concessions and tighten regulations, potentially halving the migrant intake over two years. Despite Australia’s efforts to boost migration in 2022 to address labor shortages post-pandemic, the surge in foreign workers and students has intensified pressure on the rental market.
Record Immigration Statistics
Data from the Australian Bureau of Statistics revealed a 60% increase in net immigration, reaching a record high of 548,800 individuals in the year ending Sept. 30, 2023. This influx, primarily driven by students from India, China, and the Philippines, has contributed to a 2.5% surge in Australia’s population, reaching 26.8 million people by September 2023.
Housing Market Impact
While the influx of migrants has expanded the labor pool and mitigated wage pressures, it has exacerbated challenges in the housing sector. Record-low rental vacancies and elevated construction costs have constrained new housing supply, intensifying competition in the rental market.
Decline in Migration
Despite the surge in migration, recent government interventions have led to a decline in migration levels, with international student visa grants dropping by 35% compared to the previous year, according to Minister O’Neil.
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Credit: Renju Jose