International students are flocking to Australia, but the country's infrastructure is not ready

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Housing investments, not flashy infrastructure projects, are needed if Australia is to successfully manage a migration program supercharged by international students, according to experts.

Key points: Large numbers of new migrants are concentrated around universities in Sydney and Melbourne, according to new ABS data

Experts have identified housing as a problem prompted by an influx of international students

The Government is pledging infrastructure investment to address impacts of high migration

The call follows news last week that Australia has taken in 525,000 international students this year, a 12 per cent increase compared to last year, itself a record.

Glen Searle, honorary associate professor in planning at Sydney University, said the Federal Government's response to immigration so far has been "totally inadequate" and it now has a "moral responsibility" to deliver investment required by Australia's immigration program.

In the case of international students, he argues that means more affordable housing.

"There's been quite a build-up of student accommodation, but it's nowhere near enough," he said.

"Universities, perhaps with some Federal Government funding, should be directing some of their fees into providing their own accommodation."

Australian Bureau of Statistics (ABS) data released this week revealed how the highest concentrations of Australia's newest migrants can be found around university campuses and the inner suburbs in Melbourne and Sydney.

Only Melbourne and Parramatta centres attracted more migrants in 2016-17 than the suburb of Clayton in south-east Melbourne, site of Monash University.

Mayor of Monash Council, Paul Klisaris, said he didn't want international students to be made "scapegoats" for Australians' frustrations with congestion and the cost of living.

But he said there had been major impacts for his council area "as a result of this mass movement".

International students driving migration

Prime Minister Malcolm Turnbull said the rise in foreign students has been the biggest driving factor of immigration growth.

"There are around 200,000 more foreign students in Australia today than there were a few years ago," he said earlier this month.

"That is the single biggest driving factor (of immigration growth).

"So if you feel there are more foreigners on the tram and you can't get a seat on the tram, that is because of that, if that's your perception."

The new ABS figures are the first to provide local migration breakdowns, providing an insight into how fast some neighbourhoods are changing.

Liz Allen, a demographer at the ANU Centre for Social Research & Methods, said infrastructure development had not kept pace with the migration program in the past 20 years, and the blame fell on politicians.

"I would be strongly urging people to be considered when they look at these figures," she said, "and not blame migrants, but rather hold politicians to account".

A spokesperson for Deputy Prime Minister Michael McCormack, who has responsibility for population issues, said the Federal Government was working with its state counterparts to address competing challenges prompted by population growth.

"Future population growth, busting congestion and investing in projects to ensure people can get to home, university and work and back again sooner and safer is a key focus of the Government," they said.

They pointed to the recent announcement of $5 billion for the Melbourne Airport Rail Link, Victorian Regional Rail Revival and $80 million towards the Macquarie Park Transport Interchange at Macquarie University.

Beyond road and rail investment

Sophie Arkoudis, Associate Professor in higher education at University of Melbourne, said students were drawn to urban centres and campuses because they offered a cosmopolitan lifestyle and sense of security, but Australia could develop a stronger "host culture".

"They feel safer there, they have a community that they can tap into, which is primarily international students, but can broaden out from that," she said.

"There's been a lot of focus on what universities can do for international students, but there's a lot that can be said about the broader society in which they operate," she said, "and develop a host culture to welcome international students to Melbourne or Sydney".

Annual education exports in 2016-17 were valued at $28 billion by the ABS.

She said preventing employment exploitation of international students and access to secure, affordable housing were the most pressing issues for this group.

Prof Searle said these were often triggered by the problem of expensive housing.

"The cost of housing means students need part-time jobs — they are only allowed to work for 20 hours a week, and it's usually at minimum wage, though a lot of them get paid even less than that," he said.

"That's often not enough to pay for their food and their rent."

Existing residents in these areas also faced change.

In Clayton, 1,000 people who lived there in 2016 had moved out in 2017. An even larger exodus was recorded in Parramatta.

Mr Klisaris said Monash University has sacrificed open space in order to build more university and accommodation facilities.

"On knock-on effects to the broader community where sporting clubs are being displaced — they knock on the local government's door, and we can't help because we're squeezed also."

The Labor-aligned mayor said he welcomed recent rail investment in his area, and noted his council were developing a new planning scheme.

But he claimed housing and community services were more urgent priorities than headline state and federal projects such as the $5 billion airport rail link.

"Is that the right bit of infrastructure?," he said.

"I would argue that we need it, but there may be more burning priorities."

Topics: government-and-politics, australia