By Ethan Kok

Introduction

Being given the privilege to pursue one’s education in Melbourne represents freedom, growth and opportunities. Yet, beneath all this excitement of the vibrant city life and academic prestige lies a heavy price tag – costly rents, high expenses and unspoken guilt. International students often question their academic performances under the relentless pressure to excel and secure a successful career.

As of 2024, living costs in Australia increased by 1.2% to 1.4% in the June quarter surpassing the 1.0% CPI rise for the first time since December 2010. It indicates higher cost pressures across all household types (Australian Bureau of Statistics, 2024).

However, rather than seeing these challenges as burdens, we can treat them as lessons in resilience, humility and gratitude.

Melbourne: Vibrant but expensive city

Melbourne’s coffee is world- renowned for its flavour. You’re not just paying for coffee but also for the craftsmanship behind it (Explore Melbourne, 2024).

Getting from one place to another isn’t any better, a trip to the city deducts up to 6 dollars from your myki card, quickly eating up your weekly allowance . Buying a car is convenient when you’re on a road trip, yet on a daily basis, you’ll likely pay more for parking fees than for actual car maintenance.

Let’s also not forget Melbourne’s infamously unpredictable weather, which creates another hidden cost weather tax. You would have to own an extensive wardrobe to be able to account for all seasons, certain occasions you experience them all in a day (Explore Melbourne, 2024). This brings us to the first lesson from living in the city: economic resilience.

Breaking down the costs

The largest expense amongst all is the tuition fees. An undergraduate in the business field at the prestigious University of Melbourne would incur a cost of $57,586 annually starting from the 2026 academic year . Daily expenses vary for international students, but most will spend a range between $35000 to $38000 yearly, with accommodation being the main contributor (Behune, 2023) .

On campus residences cost between $1500 and $1800 per month which equates to approximately $400 per week. Living in shared private apartments would cost even more since rent usually excludes utilities like internet, water and electricity (Behune, 2023).

On the food and groceries side, those opting for home cooked meals tend to spend about $100 to $150 on weekly groceries. Whilst dining out frequently can double this value to about $200 to $300 per week (Cost of living Guide for Melbourne – Novel Institute Of Hospitality & Management, 2025). While these figures already paint a costly picture, the actual financial burden for international students can be even heavier when factoring in currency exchange rates.

Currency Exchange

Looking back at 2015, the AUD/MYR was up 9.36% — showing an increase in value for the Australian dollars (Exchange-rates.org, 2015). However, by 2024, the rate for AUD/MYR was down 11.65%, indicating a decrease in value in comparison to the Malaysian Ringgit (Exchange-rates.org, 2024). On paper, this might seem like an improvement but once we take into account inflation and living costs, Malaysian students in Melbourne are worse off than before.

For a one- bedroom unit, the weekly rent now price starts from $495 weekly, up by 50% from $330 a decade ago (Redman, 2025). Not to mention, the price of coffee, which used to be $3.15 can now easily cost up to $6 (Donelly, 2024).

Once we convert these values back to Malaysian Ringgit, what used to cost about RM5000 monthly has changed drastically — now easily exceeding RM8000. Although the Malaysian ringgit has strengthened against the Australian dollar, the real value of Malaysian spending power has weakened. The pandemic reset the global economy, and despite a stronger Malaysian ringgit, the cost of studying and living in Melbourne is now higher than ever — indicating that appreciation in currency rates no longer truly affects affordability.

Why is Melbourne Expensive

Melbourne, often regarded as the one of the most liveable cities in the world, now comes with a heavier price tag, ranking just behind Sydney ranking as the most expensive city to live in Australia.

Back in the early stages of Covid-19, the Australian government imposed policies to boost aggregate demand. The economy recovered quickly but new issues came up ; demand for actual goods increased but the short-run aggregate supply was affected. Prices for goods were increasing due to the Russian invasion of Ukraine. This also led to increase in prices of energy and other related commodities, which in turn, heavily affected domestic supply chains throughout Australia (Becker et al., 2023).

As for the housing crisis, Australia has not been constructing sufficient houses to keep pace with the rapidly growing population. Additionally, the crisis has worsened due to restrictive planning laws preventing developers from constructing homes in desirable areas where they are not legally permitted to build (Tian, 2025).

This debunks a public major misconception is that migrants are the main cause of the housing crisis. According to statistics from experts, they do not contribute significantly as most who move to Australia are temporary visa holders who primarily stay in dedicated student housing accommodations (Tian, 2025).

The Emotional and Social Dimensions of Financial Pressure

The challenges you face far away from home are beyond tracking your expenses in excel spreadsheets. The first few months are often the most difficult, as we are still adapting to taking care of ourselves. Actions that once felt common, like dining out during the weekends, now feels like a rare luxury.

In many cases, students will pick up work, in the form of part-time shifts in order to afford a better lifestyle. Nonetheless, it comes at the expense of their study and rest time. The emotional strain of financial limitation often leads to feelings of guilt and isolation. In fact, most international students don’t share their struggles with their families back home — families who have made unconditional sacrifices to support them. Many also find themselves comparing their situation to peers who come from stronger financial backgrounds, a persistent reminder of the inequality that exists within the international student community.

Out of our comfort zones we learn more to manage ourselves and discover new traits we never thought we had. The lessons we learn along the way teaches us qualities far beyond our textbooks — the ability to juggle your finances, health, academics and social life. Doing all of this while informing your parents that everything is good is a trait we should all be proud of. As Melbourne's cost of living grows, the emotional price of studying abroad is just as significant.

The Values of Global Education

Global education extends far beyond academic achievements. It is also a reflection of both privilege and inequality. Malaysian students in Melbourne are sharpening the contrast between aspiration and affordability, as they navigate far from home.

To reflect on this, one must question whether global education is sustainable itself. The cost of tuition fees and the standard of living are rising quicker than the real income of many households. Tertiary education abroad might be seen more as an exclusive commodity rather than the shared pursuit of knowledge and experiences. The diversity that once defined international campuses could be shifted into a new hierarchy based on financial capacity.

In the financial year of 2023 to 2024, international education was worth $51 billion to the Australian economy. More specifically, $30 billion was paid for in goods and services, with the rest being paid for in tuition fees (Australian Government, 2025). Universities and policymakers have to acknowledge that it isn't just a form of exports to Australia’s GDP but an exchange of ideas, cultures, and opportunities. Its true values lie in accessibility, inclusivity and transformative opportunities for students from all backgrounds.

Conclusion

Funded through scholarships or supported by our families, studying abroad is a privilege that must not be taken for granted. The experience of living and learning in a city such as Melbourne, despite the financial and emotional tolls, is something that countless people can only dream of. For every matcha bought, lecture attended and friendship made along the way, we’re writing a chapter in our twenties we’ll always cherish.

We're constantly balancing choices — whether to stay in and work hard or go out and have fun. Every decision made defines our university life and shapes the adults we become. This period of life is our golden decade, where we stand between youth and responsibility, where we learn the purpose of sacrifice and enjoyment.

No matter the circumstances that brought us here we owe it to ourselves and to everyone who believed in us to make this journey count.

References

Australian Bureau of Statistics. (2024, August 7). Rises in living costs across all household types. Australian Bureau of Statistics; Australian Bureau of Statistics. https://www.abs.gov.au/media-centre/media-releases/rises-living-costs-across-all-household-types

em. (2024, May 2). Why Is Melbourne So Expensive? – Explore Melbourne. Emelbourne.com.au. https://emelbourne.com.au/why-is-melbourne-so-expensive/​

Cost of Living Guide for Melbourne – Novel Institute of Hospitality & Management. (2025). Novelinstitute.edu.au. https://novelinstitute.edu.au/cost-of-living-guide-for-melbourne

Behune, M. (2023, January 10). Cost of Living in Melbourne For Students 2023 - UniAcco. https://uniacco.com/blog/cost-of-living-in-melbourne

AUD to MYR Exchange Rate History for 2015. (2015). Exchange-Rates.org. https://www.exchange-rates.org/exchange-rate-history/aud-myr-2015

‌AUD to MYR Exchange Rate History for 2024. (2024). Exchange-Rates.org. https://www.exchange-rates.org/exchange-rate-history/aud-myr-2024

‌Redman, E. (2025, August 25). The modest type of housing where rents have soared. The Sydney Morning Herald. https://www.smh.com.au/property/news/the-modest-type-of-housing-where-rents-have-soared-20250825-p5mpmk.html

Beckers, B., Hambur, J., & Williams, T. (2023). Estimating the Relative Contributions of Supply and Demand Drivers to Inflation in Australia | Bulletin – June 2023. Www.rba.gov.au, June. https://www.rba.gov.au/publications/bulletin/2023/jun/estimating-the-relative-contributions-of-supply-and-demand-drivers-to-inflation-in-australia.html

Tian, Y. (2025, April 14). Australian house prices: Why are they so high? BBC. https://www.bbc.com/news/articles/cq5wlevy647o

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