Property demand is expected to increase over the coming months, as the Australian Bureau of Statistics (ABS) records strong population growth.
Earlier this week, the ABS noted that Australia’s population had climbed to 22.9 million people.
This growth was largely (60 per cent) driven by overseas migration.
RP data national research director Tim Lawless said this figure equates to 1.75 per cent growth in Australia’s population over the December 2012 quarter.
Victoria trumped as the state to record the highest levels of population growth across the country’s states and territories for the 2012 calendar year where an additional 99,548 residents now reside in the state.
Overseas migration accounted for 56.4 per cent of the state’s growth, however, a larger than average proportion of Victoria’s population growth was from natural increase (41.8 per cent), while a very small proportion can be attributed to interstate migration flows.
Queensland recorded the second largest number of new residents at 92,453, followed by New South Wales where there were 90,441 more residents over the year.
Mr Lawless said the release of the Australian demographic series over 2013 will be an interesting flow of data to monitor.
“The last time we saw a weakening labour market was back in 2008. This result created an adjustment to migration policy around migration intake which resulted in a slump in population growth,” he said.
“With labour markets likely to see a rise in the national rate of unemployment and jobs creation running below trend, we may once again start to renewed pressure to reduce migration quotas in response to the softening labour market.
“Looking at the more timely overseas arrivals and departures data, it appears that long-term and permanent arrival numbers from overseas are starting to level off at near-to historic highs.” Reproduced in full with permission: TheAdviser Population growth to lift dwelling demand
28 June 2013 Attention: This article is intended to provide general information only. Every attempt has been made to ensure the accuracy of this information at the date of publication. The opinions expressed in this article do not reflect those of DHA, its staff or agents. Property prices are subject to fluctuation. Prospective investors should seek independent advice. DHA will not be liable for any loss, damage, cost or expenses incurred or arising by reason of any person relying on information in this article.