Student Accommodation Sector Under Threat

AUSTRALIA's lucrative student accommodation sector is at risk, with cash strapped United States universities said to be preparing to open their doors to more foreign graduates in the wake of the economic downturn.

A cheaper US dollar, scores of student accommodation and faster visa approval times than Australia, should give the United States an edge, according to a report in The Australian's Higher Education section.

"The obvious implication is the market for foreign students will become more competitive because you will have a lot of large and high-prestige universities competing for students," he said.

He cites as an example the University of Berkeley, which is trying to attract foreign undergraduates, as an "extremely powerful global brand".

"They (US universities) can fish in the global market and charge the global price. That's a very important revenue stream for cash-strapped universities," he said.

The US is already the world's dominant player in regard to international students, with 20 per cent of the 3-million strong market, in 2008.