As the world economy recovers,
Australia is seeing a population boom that
continues to put pressure on housing
Population expansion is a fundamental key to the property market as it brings on more demand for housing. According to the ABS, Australia’s population expansion has hit a new record with an increase of 439,000 new residents over the year to March 2009. To provide a little perspective, in real numbers Australia’s population growth has never been this high. The higher the population growth, the more homes need to be built to accomodate the increase. In percentage terms, the population growth has not been at this level since the baby boom. Unfortunately, there is a major difference between housing demand and housing supply; to put it in simple terms there is simply far too few new homes and units being constructed to provide accomodation for our growing population. Rental markets around the country have shown large increases in rental rates over the last three years. However, over the last three months rental rates have peaked and in some areas have fallen. Rental rates will most likely start to increase again due to a shortage of rental housing and a pull back of first home buyer demand coupled with record levels of population growth. With vacancy rates remaining at historic lows across the capital cities, any relieif for renters is likely to be short-lived. Demand for rental accomodation has temporarily eased as many renters have taken advantage of the improvement in housing affordability brought about by both low interest rates and the boost to the First Home Buyers Grant. Locally there are still very few homes for rent and the rent being asked is still increasing in the regional areas. Sales are still going strong with anything hitting the market going under offer very quickly. many agents are experiencing a great shortage of stock to sell. Some agents have even closed their doors due to a lack of property to sell. If an agency depends on sales alone, they could end up in trouble.
25/09/2009
October 1, 2009 at 4:26 am |
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October 1, 2009 at 6:46 am |
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A definite great read..Jim Bean
October 6, 2009 at 10:37 pm |
I don’t usually reply to posts but I will in this case, great info…I will add a backlink and bookmark your site. Keep up the good work!