Population growth should bode well for the Australian housing market
Australian population is growing at a good rate and it augurs really well for real estate. Macroeconomics suggests that population growth is always a key indicator for the property market. For an year upto September 2012, the population spurted by 1.71%, says Michael Yardney for the Property Update. This is much higher than the 30 year average of 1.4%.
About 60% of the increase in the Australian population was contributed by people migrating into Australia, seeking better jobs here. About $40%, that is nearly 154,000 Australians were added as part of the birth/death surplus.
This brings us to why the population growth can be so helpful for the property market. Last year, we created 142,000 dwellings. This is below the expected rate of 170,000 needed to meet the population upsurge. This will mean that in coming times, there will be a lot of demand for properties. Mounting pressure for homes will increase the national rents.
number of 65+ and children on a rise
Number of Australians aged beyond 65 years is on a rise too. This will require more initiatives on the healthcare front. With more children contributing to the population hike, there is an urgent need for more education houses, hospitals and so on. Already, Australia is being deemed as one of the wealthiest nations in the world. This fact implies that we will have more purchasing power. You can read the original article here.
In the final analysis
I believe that the stage is well set for a robust show by the property market. With cash liquidity and demand joining hands, more and more people will look to buy homes. Already, we have seen how the first home buyers and investors have shifted the property momentum considerably. Also, I feel that the baby boomer generation will be looking at apartment homes in considerable numbers, adding further demand to the apartment segment of the market.