How and Why will Property Growth continue?

Every now and then, there will be a good debate over what the main point will be that keeps Australia's property growth moving forwards.

Obviously population is a key driver for this and we can see that from the start of this century, Australia has experienced significant growth in and around our capital cities:

Higher rates of overseas immigration usually mean the addition of people younger than the average age in the city, slowing the ageing of that population. The total number of people aged over 65 will still be highest in our largest cities, but the differing proportions and rates of out-migration from major cities of this age group highlight the different challenges our cities will face in supporting ageing populations.

Some other key facts arise:

• Australia has added an estimated 400,000 people since 2013, an increase in the total population to over 23.6 million people

• Australians are predominantly urban dwelling people. More than 75 per cent live in the country’s 20 largest cities, and over 60 per cent live in Australia’s 5 largest cities alone – Sydney, Melbourne, Brisbane, Perth and Adelaide

• Over the last decade Melbourne has seen the greatest growth in absolute terms, adding approximately 750,000 people, equivalent to more than 200 people per day. Australia’s largest city, Sydney, while adding fewer people than Melbourne over the same period, still grew by almost 600,000 people

• The fastest-growing cities in Australia since 2004 are the capital cities of Perth and Darwin, as well as the regional major cities of Cairns and Townsville. Each of these cities grew by at least 20 per cent over the decade, while Perth grew by more than 30 per cent.

Australia’s strong population growth is projected to continue into the future, with the ABS’s (Australian Bureau of Statistics) medium projection estimating that Australia will grow to just over 30 million people by 2031. The majority of this future growth is expected to occur in and around Australia’s capital cities

Property Club members have seen a lot of success with Club research at the forefront of these high-growth areas.

Join me next week, when I look at some key facts of our economy!

Have a great weekend and catch you next week...

Troy Gunasekera