As property investors we know that our strong population growth was one of the factors that drove our property markets strongly over the last few years.
So it’s not good news to here that Australia’s population growth has fallen to its slowest rate since 2007, after a sharp decline in migration levels continued into the first quarter of this year.
According to the Bureau of Statistics, our annual population rate has slowed considerably from the record high of 2.2% of the previous year, to 1.8% reported last week.
The main reason for this slowdown was a drop in net migration, which was 37% per cent lower than a year earlier.
Interestingly we are still experiencing a baby-boom, with a record 303,500 babies born in the year to March, up 3.1% on last year.
This means our rate of natural population increase – births minus deaths – was 7% higher than a year earlier, in apart due to a falling number of deaths.
So what does this means for us as property investors?
Sure our population growth has slowed but our annual growth in population still remains well above its long-term average and is still amongst the fastest in the developed world. Some would say we are still growing at the rate of a developing country – not a developed Western nation.
This will continue to put pressure on our infrastructure and underpin property prices due to a continuing demand for housing.
However, the growth has not been evenly spread around the country. The booming resources states, Western Australia and Queensland, led the charge with respective growth rates of 2.3% and 2.2%. The growing states were Tasmania and South Australia.
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