While I see a number of short term challenges ahead for our property markets I’m confident in the long term.
While there are many factors leading to the continual growth in value of well-located properties in Australia, when you boil down, there at two long-term growth drivers and these are:
- Our increase in household formation – our population growth
- The wealth of our nation
We need both for robust growth in property values, but what’s ahead with the recent change in migration policy and perhaps a new government?
Watch this week’s Property Insider video as Dr Andrew Wilson and I discuss migration as a key driver of our property markets.
You’ll see us discuss:
- Australia’s population is growing faster than any other developed country – a combination of natural population growth and immigration.
- The election fuelled policy changes designed to restrict recent record levels of migration will impact demand for housing- particularly in Sydney and Melbourne which are clearly the most favoured destination for international migrants.
- Strong net migration performances by Melbourne and Sydney over recent years fuelled burgeoning house price growth.
- By contrast declining net migration from Perth, Darwin and Brisbane have kept house price growth relatively subdued.
- Revival in net migration levels recently in Brisbane, Adelaide, Canberra And Hobart has resulted in upward pressure on house prices
- Plans to redirect migrants to regions is as usual doomed to fail as once compulsory period of settlement has concluded migrants head back to big cities for better career opportunities – Adelaide key example.
- A Labour government could be expected to favour higher levels of migration which would be a positive for housing markets.
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