Australia’s 295,000 Student Cap Isn’t Just Education – It’s Your Profit Signal

On August 4, 2025, the Australian government increased the National Planning Level (NPL) for new international student enrollments to 295,000 for the 2026 academic year, a 25,000 increase from the 270,000 cap set for 2025.

That’s not a small adjustment; that’s a 9% increase in demand for housing, transport, and city infrastructure in just one year.

Education Minister Jason Clare emphasized this adjustment is intended to offer "stability and certainty" to the education sector and promote sustainable growth. The policy also encourages universities to strengthen ties with Southeast Asia and demonstrate they have sufficient student housing capacity to qualify for higher allocations.

I’ve been in property investment for almost two decades, and I can say that the more people arriving means more pressure on an already tight housing market, especially in cities like Melbourne and Perth, where universities and lifestyle make them top choices for overseas students.

I’m telling you now: if you’re smart, you’ll read this as a market signal. And those who act on signals are the ones who win.

Why the 295k Cap Is a Property Story Disguised as an Education Policy

Let’s look beyond the surface. 

When Australia raises its student intake, it’s not just about filling classrooms. It’s about bringing in young, skilled, and often wealthy individuals who:

- Rent immediately (often paying premium rates to be close to campus or city life).
- Buy if they have the means, especially if they come with family.
- Stay after graduation via skilled migration, creating long-term housing demand.

Here’s what happens next:

1. Developers pre-sell units in areas near universities and transport hubs before the students even arrive.

2. Landlords enjoy higher occupancy rates — vacancy rates in Melbourne’s inner suburbs are already under 2%.

3. Prices edge up — slowly at first, then faster as competition grows.

And if you think this is theory, after the last big wave of student migration in the mid-2010s, Melbourne CBD apartment prices rose over 30% in less than four years.

Here’s What You Don’t Want to Miss

Student Demand = Rental & Capital Goldmine

Imagine tens of thousands of new students arriving hungry for safe, convenient housing.

This demand turbocharges rental yields, capital appreciation, and long-term returns, especially in hotspots like Melbourne and Perth, two cities with robust infrastructure, university presence, and savvy international demand.

Yes, You Can Buy Property Without Being a Citizen

You don’t need citizenship, just hold a temporary visa, become a permanent resident, or be married to one. You must apply to the Foreign Investment Review Board (FIRB).

But note this: from April 1, 2025 to March 31, 2027, Australia has placed a mandatory ban on foreigners buying established homes unless exceptions apply.

So your sweet spot? Approval is straightforward for;

- New build properties
- Off-the-plan purchases
- Vacant land development (with construction deadlines) 

Buying while on a visa can be part of a long-term migration strategy; many clients I’ve worked with bought off-the-plan while studying, settled it after securing work rights, and then lived in it or rented it out at premium rates.

Can You Work While Holding a Student Visa?

Absolutely. Student visa holders can work part-time, often up to 48 hours a fortnight and full-time during holidays. That’s side income, living experience, and deeper ties to Aussie life before even settling permanently.

How Australia Compares to Other Countries Right Now
If you’re choosing between countries for education and property investment, here’s the blunt global picture:

Bottom line? Australia is still one of the most open and migration-friendly property markets for foreigners, but only if you act in the “allowed” segment (new builds/off-plan).

- High student intake, increasing steadily
- Streamlined investment channels (new builds, developments)
- Work avenues for visa holders
- Strong capital growth in key cities
- Migration-friendly environment overall

Melbourne vs Perth 
You asked where to put your money: Melbourne or Perth. Here’s how I’d advise you as your realtor.

Why Buy Melbourne

Demand drivers: world-class universities (University of Melbourne, Monash, RMIT) + culture + transport links = steady long-term demand.

Market dynamics: very low vacancies in inner suburbs (under 1% in many areas) and rising asking rents, perfect for investors who want low downtime and stable rentals. 

Prices & yields: median unit $614k; gross yield 5.6%, a good mix of capital growth & rental income.

Why Buy Perth

Affordability & yields: Perth unit medians are roughly A$615k, but many growth corridors and coastal suburbs still offer stronger yields and future capital upside; gross yields 5.27% (and in some submarkets yields are higher).

Growth catalysts: mining cycles, migration, and improving urban amenity; Perth offers lower entry price per unit for larger spaces.

My Straight Advice to You

If you see yourself or your children studying, working, or retiring in Australia, and you also want capital appreciation, buy in the segment you’re allowed into now. That means:

Target new-build or off-the-plan projects within 0–20 minutes of a major campus or transport node. 

Pick projects with pre-settlement rent guarantees or strong operator ties (students + short-stay platforms) they reduce vacancy risk during the first year.

Time the settlement to line up with student intakes; buy in 2025 for 2027–2028 settlements if you want the first wave to carry through.

Finance with currency hedging in mind; AUD can strengthen with rate moves and capital inflows; protect your SGD/HKD/USD exposure.

FIRB & tax: get a FIRB advisor and a cross-border tax specialist before you sign. Fees and conditions for foreign residential applications are significant; factor them into your IRR.

Let’s do this!

I help a lot of clients identify the exact projects that fit their goals, budget, and migration timeline. But timing is everything. Once the 295k intake starts filling flights and rental listings, you’ll be in a bidding war, even for off-the-plan.

Lock in your Melbourne or Perth property before you’re reading about the next price jump instead of profiting from it. Act while the new-build pool still contains the best floors and positions.

Message us now!