As investors we understand that population growth is directly linked to demand for property and can have a positive effect on price growth. Knowing this we want to pinpoint exactly where people are moving and how many people are moving there! This knowledge will give us insight into a key driver for property prices - Demand.
According to the Australian Bureau of Statistics (ABS), Australia’s population grew by 395,600 over the past year to reach 24.7 million people. This represents an increase of 1.63% over 12 months. That is clearly some strong underlying demand in 2017!
What are the expectations moving forward?
Forecast population growth is expecting to see 350,000-400,000 people migrate every year to Australia over the next 25 years. What is interesting is that 80% of this growth is expected to be seen in the 4 largest cites. Owning property where people are moving is a very good thing!
The ABS forecasts population growth rates on a yearly basis into each city across Australia up to 2026. What they are expecting to see is:
Melbourne is expected to increase by 92,500 every year taking first place with forecast population increase.
Sydney is following closely behind expected to increase by an additional 82,000 people per year.
Perth’s population base is expected to see a further 70,000 residents every year, which will be a welcome improvement to the currently over supplied market.
We can’t forget South East Queensland, which has an estimated population growth rate of 72,000 per annum. Brisbane is taking the lion’s share with an expectation of 52,000 new residents each year (a massive per capita growth rate).
Recently Business Insider released this article that provides some key statistics revealing how immigration is speeding up Australia's population growth. The article breaks down each state in Australia to help us understand where we should be focusing our attention.
We discuss this in more detail in our recent Coffee & Property episode 7 which you can view HERE.