Pakistan, Aug. 5 -- Australia will raise its cap on foreign students by 9% to 295,000 next year and prioritise applicants from Southeast Asia, the government said on Monday.

Limits on places were announced last year as a way to rein in record migration that had contributed to a surge in housing prices, with 270,000 places made available for 2025.

An additional 25,000 places were being granted in 2026 as the policy was successfully bringing down "out of control" international student numbers, the government said.

"This is about making sure international education grows in a way that supports students, universities and the national interest," Education Minister Jason Clare said in a statement.

Australia granted nearly 600,000 student vi...