A rise in the number of international students in Brisbane is creating new demand for student housing, according to a report by State of Place.

Queensland is the second most popular state for net interstate migration, behind Victoria, according to ABS migration data for the 2014-15 financial year, the latest data available.

For net overseas migration, Queensland is the third most popular state, behind New South Wales and Victoria.

Though the Sunshine State remains one of Australia’s most attractive states for migration, migration levels are the lowest in ten years.

A new report by State of Place puts weaker migration down to the weakness in the mining sector.

“Thanks to the downturn in the mining industry and heightened issues surrounding job security, migration to Queensland has taken a hit,” the report states.

“Without migration,” the report goes on to say, “the property industry will not see any substantial change in levels of demand.” Prices will remain flat.

International student arrivals are bucking the trend. Recent overseas migration into Queensland has been driven by temporary migrants, including skilled workers and international students.

Skilled workers are attracted to Australia by the lifestyle, high wages and the relative ease of obtaining a temporary visa.

International students are lured to Australia by the quality of our tertiary institutions, and the fact that Australia is an English-speaking country.

“Offering world-class education, a multicultural environment and a high-quality and easy going lifestyle, Brisbane is a renowned destination for international students,” says Sate of Place.

Approximately 15% of overseas migrants that arrived in Queensland during the 2014-15 financial year were international students, according to the Department of Immigration and Border Protection, an increase of 27% over the previous two years. For the 12 months to April 2016, there were 72,316 international students enrolled to study in Queensland, or 15% of total international students in Australia, says the report.

The rise in the number of international students arriving in Queensland is giving a significant boost to demand for student accommodation.

“Brisbane’s inner suburbs have approximately 7,099 student accommodation rooms currently in the pipeline,” according to the report.

Once completed, these developments will create a number of student precincts around the Brisbane CBD, South Brisbane, Woolloongabba and St Lucia areas, further increasing Brisbane’s appeal to international students.

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