Population growth is one of the indicators we look for when determining opportunities for property investment. As more people move into an area there naturally follows a demand for housing, people need to live somewhere.
Population growth has been increasing across Australia. The Australian Bureau of Statistics (ABS) tells us that the nation’s population is 23.13 million. This has been a growth of 407,000 as of June 2013. This means that our annual growth rate is 1.8%, which is higher than the long-term average.
This growth is a combination of natural population growth, which is the number of births minus the number of deaths, this grew by 162,700 people during 2012/13 which is an increase of 2.4 per cent over the previous year. The second contributor to this growth is overseas migration. During 2012/13 we saw an increase of 8.6 per cent or 244,400 people.
It is also interesting to note that Australia’s population growth at 1.8% is ahead of world growth at 1.2% and many of our neighbours, Philippines (1.7%), Malaysia (1.6%), India and New Zealand and Viet Nam (all 1.0%) and even the US at (0.8%)
We are likely to see our population growth trend continue and official projections confirm that this is expected to continue growing.
What this means for property investors is that as our population grows the demand for housing is also likely to increase which in turn can drive the price and rental yields up. This is great news for property investors as these are two very important outcomes, the overall capital growth of your assets and the income you earn from them.
If you would like to know more about how population growth impacts property investment attend our upcoming property investment seminar or contact email@example.com