The Australian population grew by 102,000 in the first quarter of 2008 which will put further strain on housing supply.
Australia’s overall population grew by 1.61 per cent or 336,800 over the 12 months to March, which is the fastest rate of growth in almost 19 years. This is mainly due to the largest migration boom in history, with net overseas immigration now standing at 199,000 annually, double the number of those four years ago.
The strength and growth in population continues to put further upward pressure on the demand for housing. The supply of housing remains far short of the demand which is needed however, we are seeing that the housing sector is slowly starting to build more homes.
The Australian population grew by 102,000 in the first quarter of 2008 which will put further strain on housing supply.
Australia’s overall population grew by 1.61 per cent or 336,800 over the 12 months to March, which is the fastest rate of growth in almost 19 years. This is mainly due to the largest migration boom in history, with net overseas immigration now standing at 199,000 annually, double the number of those four years ago.
The strength and growth in population continues to put further upward pressure on the demand for housing. The supply of housing remains far short of the demand which is needed however, we are seeing that the housing sector is slowly starting to build more homes.
The rental market is the tightest it had been in 18 years and it can not get much tighter. With the strength in rental yield and a more uncertain outlook for the share market there is likely to see an increase in housing investments over the coming months.
Australian Bureau of Statistics found In New South Wales the population has increased by 72,400 and 91,900 in Queensland, 1.1% and 2.2 % respectively.
New evidence has shown that rental vacancy rates are lowest in suburban area where most new migrants tend to settle, such as the western suburbs of Sydney.
Colliers International has identified suburbs located between 5km and 10km of Brisbane’s CBD as the next area to cater for the city’s booming population.
Brisbane’s population is set to exceed 1.2 million residents by 2025 with the biggest increase to occur in the next eight years and the ageing population to drive the push into bayside and outer suburbs.
One of the fundamental issues associated with population growth is ensuring appropriate levels of infrastructure, including transport, healthcare and schools are planned for a rolled out strategically.
Brisbane’s middle suburbs have been forecasted to become increasingly attractive to developers and buyers, given their closeness to the city and to public transport systems.
More people are residing in Australia; however we are not building enough homes to keep up with the growing numbers. The strength of Australia’s population points to the likelihood of strong housing construction in 2009.
Building material companies, developers, retailers and banks have the potential to gain from the lift in housing activity.
A recent survey of 700 people indicated that over 60% said now is a good time to invest in property.
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