Australia’s accelerating population growth underpins our property investment market

It’s a bit of a mystery to me why people are so keen to try to dismiss population growth as a key factor which underpins our major capital city property markets.

I mean, just take a look at last week’s numbers from the ABS:

In the year to December 2012, the population of Australia increased by 394,200 people or 1.8%, which is way ahead of the long-term average of 1.4%.

 

Of course, population growth does not occur smoothly across the states.

In some states such as South Australia (+15,600), ACT (+8,600), Northern Territory (+4,200) and Tasmania (+400), the absolute growth numbers continue to be quite small. I don’t expect that to change too much.

On the other hand, take a look at what is happening in the states which house the major capital cities.

The population of WA is absolutely booming by 3.5% in the year to December 2012 or 83,000 people, so it’s little wonder that the Perth property market is flying.

And in Queensland (+92,500), Victoria (+99,500) and New South Wales (+90,400) the population growth continues apace.

 

People continue to head largely to the capital cities..

And so it’s little coincidence that over the past 12 months prices in Sydney (+4.61%) and Perth are smoking along (+7.8%).

Growth in Melbourne’s real estate markets has been a little more subdued (+2.12%) but then, why wouldn’t it be? Melbourne has, after all, experienced a quite phenomenal boom in prices since 2007.

It’s small wonder that we struggle to keep up with accommodation and infrastructure needs with population growth figures such as these reported today.

[post_ender]

[sam id=29 codes=’false’]



Want more of this type of information?


Pete Wargent

About

Pete Wargent is a Chartered Accountant, Chartered Secretary and has a Financial Planning Diploma. He’s achieved financial freedom at the age of 33 - as detailed in his book ‘Get a Financial Grip – A Simple Plan for Financial Freedom’. Pete now manages his investment portfolio, travels and works as a consultant in the finance industry from time to time. Visit his blog


'Australia’s accelerating population growth underpins our property investment market' have no comments

Be the first to comment this post!

Would you like to share your thoughts?

Your email address will not be published.
CAPTCHA Image

*

0
0

Michael's Daily Insights

Join Michael Yardney's inner circle of daily subscribers.

NOTE: this daily service is a different subscription to our weekly newsletter so...

REGISTER NOW

Subscribe!