Population growth is a key statistic for due diligence for most property investors.  Most of us want to be buying investment property in an area of high demand.

 

Population growth is a great indicator of an area’s appeal where there is plenty of land for new development.  Once the land close to amenities is taken up and its appeal increases relative to other areas then it has the potential to grow in capital value.

 

Add to this the consideration of infrastructure which is often the key to increased appeal.  Things such as good schools, a great community shopping centre, proximity to good transport, closeness to water, the ocean, the city and many other features.

 

It is of great interest to us to learn that the ABS released their Sept 2010 annual population growth figures today and our rate of population increase has slowed to a four year low.  At 1.6% at Sept 2010 it is down from its high of 2.2% in December 2008.

 

Within Australia each state is performing differently.  Western Australia has the fastest growing population at 2.1%, followed by Queensland at 1.8%,and Victoria and ACT at 1.7%. All of these are performing at above average rates.  Next we have NSW and NT at 1.3%, South Australia at 1.1% and Tasmania at 0.8% and these are performing below average.

 

Now we know the averages for each state, and the overall rate for Australia we need to identify opportunities with above average population growth for that area, or understand why it is lower and what other capital gains drivers may exist.  Property investment brings together a complex set of economic circumstances that we need to interpret to understand the opportunity.

 

If skilled migration is down and our resource sector demand for employment continues to grow will this be the impetus for a rise in wages and salaries which can trigger increased housing prices?

 

http://www.abs.gov.au/ausstats/abs@.nsf/MediaRealesesByCatalogue
/CA1999BAEAA1A86ACA25765100098A47?OpenDocument