Housing Market Growing Hand in Hand With Population
New South Wales and Victoria, the two most populous states in Australia, are showing further streaks of population growth. Incidentally, these are the two most potent housing markets, too, says Cameron Kusher in an article for the website Property Update.
Australian population on a rise
Australia added 0.4 million to its kitty in the year running up to September 2013. Natural increase (births minus deaths) was recorded 2.9% higher than the previous year. Increase due to overseas migration was also 1% higher, measured over the same timeframe.
NSW and Victoria are dominant forces
NSW got richer by 108,067 people, for the year running up to September 2013. This is only second to Victoria, a state which has been showing some robust trends just as well. Since June 2009, NSW has never added so many people to its bag (1.5% growth) over any year-to-year reading.
Other states are showing reverse trends
In other states- all of them barring these two- the trend has been quite reverse. Population growth is either stable or declining. Mining bust has brought down net overseas migration figures and natural increase is nothing to write home about either.
It is more than incidental that states with rampant population growth are giving best property market signals, too.
You can read the original article here.
Skilled migration
In part, I think, this has got to do with the kind of overseas migration that’s happening. Unlike any time in the past, a state like NSW is adding skilled workforce as part of its overseas migration kitty. It can be conjectured (with hope) that these people are revitalising the labour and construction industry, helping it help the real estate in general.
Gentrification
Gentrification is a phenomenon we should be more willing to discuss as it has been a major cause for the shifting demographics. Population growth should also be read in this light. At least, the theory will underpin Sydney’s and Melbourne’s cases.
In your opinion, will population growth fuel housing market or make it unaffordable?
