Migration and our housing markets – Where to now with recent policy changes? PROPERTY INSIDERS VIDEO

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:

1. Our increase in household formation – our population growth
2. 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.