Australia is one of the 10 top developed nations in the world. It is known for a large number of sunny days, low crime rate and good opportunities for salaried people. Therefore, every year a large number of immigrants choose to shift and buy property in Canberra or similar major cities. So, if you are too interested to buy property in Australia, but want to know the influencing factors. Here we have guide for you:
- Population Growth
In a population check conducted by the Australian Bureau of Statistics, it is found that Australia has a 25 million population in 2019. This means every 1.24 minute 1 person is added to the population. Therefore, with the increase in population, the need for property also boosts.
This data has been further diversified as following:
- Net Interstate Migration: NIM results in an increase and decreases in population calculations due to the movement of people from one state or territory to another.
- Net Overseas Migration: This is an increase in population that immigration from and to Australia.
- Net Natural Increase: This is Australia’s native population that increases or decreases due to birth or death.
Apart from this, in 2016 Australia has the highest population growth rates i.e. 1.4% compared to other developed nations. And with the increase or decrease in population, the demand for property also grows and shrinks.
- Job Creation
It is hard to buy property without a particular source of income. Therefore, no surprise job plays an important parameter to affect property conditions in the market. You may also hear people speaking about interest rates being a key driver of home values. But, this is partly true. Because it affects all overgrowth in the economy not, in particular region. For example, if you see property rate in Canberra, Sydney, and Melbourne here two-third property has been occupied. Hence, the interest rate for homes does not effect if you have a job or a particular source of income. Low-interest rate is a key driver to develop under-developed areas.
Every year the Australian Government conducts a National Census survey to check and diversify the population on major traits. This census tells everything about demographic composition in Australia, such as:
- Age Composition: to know the population based on age factors.
- Household Size: helps to identify people who occupied houses
- Household income: it defined the weekly or monthly income in particular family
- Home Ownership: defines the number of people having their own housed
- Dependency: it guides whether a household is a simple person or lives with family
- Occupation: It divides people based on job, self-employed and defines the type of employment
Why is real estate property survey conducted? Well, it helps to identify people based on age, income and housing need. The government can easily plan and starts working to fulfill future real estate requirements for buying a house nearby locations.
Every city of Australia has world-class infrastructure. And the Australian government is working to meet the growing demand and supply of new infrastructure needs to boost social and economic systems. With this major infrastructure development, it boosts the job creation opportunities for white-collar’(office workers) and ‘blue-collar’(construction workers). As per official records 9000 jobs have been created due to construction of Western Sydney Airport and with upcoming projects, there is a scope of 60000 more job opportunities in the next decade.
Therefore, all-around development from transport, health, education, social & religious, environment can be seen for job creation to fun activities!!
Property in any economy is a complex factor and affected by different factors. Therefore, before going to invest a large chunk of money understand the reason for high property demand in particular areas. You can also take assistance from a professional property advisor in Australia. Keep in mind, some of the more developed cities may cost you a little high, but do not forget to consider the other pros of investing. The better infrastructure, job opportunities, connectivity (transport facility), advance healthcare facility, spacious area to live and expand and a good lifestyle are an important component.