Recently, Australia reached another population milestone – 25 million people – a lazy 26% increase from 18.5m in 1997. A little unfair, but we have to say it, the Australian Bureau of Statistics (ABS) got it way wrong in 1998, when they predicted an Australian population of 23.5m by 2051.
The increasing population has obviously been one of the biggest drivers of housing growth in this country. In 1997, Melbourne’s median house price was $177,500 and Darryl Kerrigan’s home was being compulsory acquired for $70,000. Fast forward 20 odd years and Melbourne’s median house price sits at over $900,000. We’ll save the heavyweight debate – Baby Boomers v Millennials – for another time.
Whilst Australian’s are still reproducing, overseas migration is still the biggest driver of population growth. And not everyone immigrating to Australia wants to live everywhere in Australia. Here is a quick snapshot of where people are moving to within Australia;
Whilst population growth is a big driver of housing demand, it’s not the only factor you should consider when purchasing property. It’s important to consider further macro factors like job growth and demographic data; like an ageing population, who want to live in homes with minimal stairs. This should be overlaid with micro factors, like land content, property type, location, zoning, school zones, supply, quality, yield (if investment) and flooding to name just a few.
If all of the above seems too daunting, feel free to Get In Touch, 1Group Property Advisory would be more than happy to help.