Brisbane student accommodation prices climb as locals battle international, interstate arrivals

The return of international students to Brisbane universities has delivered a significant escalation to the already fierce battle for accommodation, as rates soar by more than $100 in some cases.

Student accommodation rates have surpassed pre-pandemic levels after sharp rises this year blamed on inflation and cost-of-living increases.

International students are returning in droves and snapping up rooms months in advance, leaving some Queensland students scrambling.

A regional Queensland mother said her daughter, who attends a Brisbane university, stayed at Iglu accommodation and saw her room rate increase by more than $100 in a year. She later switched to Student One and saw the rate rise while she was securing a room.

“We sat down for two days to research and budget it … she (daughter) is saving for next year’s accommodation for the next four months, until she goes back,” the mother said.

“Her old room at Iglu has already been taken by an overseas student … We were told that international students are coming back and getting in early.

“My daughter had friends who tried to privately rent units, but with the rental crisis, renters don’t want to give it to them, they want families looking for long-term leases.

“One of my daughter’s classmates commutes to university in Brisbane from the Sunshine Coast. She leaves home at 6am to catch the train.”

The Student One and Iglu rates cover accommodation costs, utility bills, building staff and security.

Student One chief executive Tim Weston said the provider discounted rates during Covid to support stranded students, but with borders reopened the rates returned to “normal levels”.

“As in the residential rental sector, rents have increased due to economic conditions and inflation … and like all sectors have been impacted by inflation and rising prices,” he said.

“An increase of three to four per cent is in line with the market and in many cases less than the increases seen in private rentals.

“Pricing changes do not apply to existing residential agreements … (and) we provide two weeks’ notice of future price increases to current students even if they are only midway through a fixed term lease.”

Iglu director Jonathan Gliksten said the pandemic had improved Australia’s value as an international study location.

“When compared with the pre-Covid period, current rents represent an average annual rental increase of around three per cent over the last three years,” he said.

“Iglu’s rates reflect the demand for our communities but also the high quality of the amenity and services provided.”

The view from Student One’s Adelaide Street building in Brisbane City. Photo: Supplied

A Residential Tenancies Authority spokeswoman said there were different rules for rent increases depending on the type of tenancy agreement.

“For periodic rooming accommodation agreements, rent can be increased at any time so long as the provider gives the tenant at least four weeks’ notice in writing,” she said.

“The Residential Tenancies and Rooming Accommodation Act does not specify how much rent can be increased by.

“If a tenant feels the rent increase is excessive, they should discuss this with the provider in the first instance. If after this conversation the tenant still feels the increase is excessive, they can request free dispute resolution with the RTA once the new agreement is signed.”

Real Estate Institute of Queensland chief executive Antonia Mercorella said the student accommodation prices reflected the supply and demand issues in the private rental market.

”We saw lots of international students depart due to Covid, but borders have reopened and those students are coming back, and more students are coming from interstate,” she said.

The RTA provides a median rents quick finder tool which shows the median rental price for types of accommodation in a particular postcode.