Permanent and long-term overseas arrivals continue to climb

We always talk about what will keep our house price growth going strong?

Is it low interest rates?

Is it the economy?

These are obviously critical, but one of the main drivers is . . . population growth.

We can have all the supply we want, but without demand, there will not be a requirement for more housing, nor capital growth.

In August, there were 62,500 permanent and long-term arrivals in Australia. The annual number of permanent and long-term overseas arrivals rose from 844,680 people to 846,510 in August, up by 3.0 per cent over the year.

In net terms (arrivals less departures) permanent and long-term overseas arrivals totalled 299,410 over the year to August – a 5-month high.

This is playing out at the moment, as Domain reports that the rebound in Sydney and Melbourne had seen forecasts changed as buyers returned to the market after recent interest rate cuts, Domain economist Trent Wiltshire said.

“The property markets have rebounded more strongly than we forecast back in June,” Mr Wiltshire said.

“Based on recent indicators, it looks like price growth over the next 12 months could be above 5 per cent, maybe even around 10 per cent.”

He said prices could be close to their peak levels by the end of next year

It was also reported by David Plank, head of Australian Economics with ANZ.

ANZ was also revising its recovery predictions of a 3 to 4 per cent improvement in house prices over the next 12 months given how quickly prices had turned around in recent months. 

Along with interest rate cuts, changes to lending criteria and the federal election outcome ensuring negative gearing tax incentives would remain in place had also seen a faster recovery since May.

Make contact with your Property Mentor or enquiries@propertyclub.com.au for further information, so you can get the right properties in the right areas, best selected for capital growth!

Troy Gunasekera | National Manager