Australia's population growth spells good news for investors
Population growth across Australia has been increasing over the last year, and is expected to continue well into 2014. At the same time, the demand for housing has also been on the rise, offering a fantastic property investment opportunity for anyone interested in building a portfolio.
The figures from the Australian Bureau of Statistics (ABS) have put the nation's population at 23.13 million by mid-2013, having grown by 407,000 over the year ending June 2013.
This works out to be the equivalent of a 1.8 per cent annual growth rate, which is higher than the long term average and indicative of the increasing population and subsequent rise in demand for housing.
There were a number of different sources for the population growth. For example, the increase of the nation's natural population, which is the number of births minus the number of deaths, rose by 162,656 people during 2012/13.
This is an increase of 2.6 per cent over the previous year and contributed 0.7 percentage points towards the overall annual population growth.
Furthermore, overseas migration exploded during 2012/13, increasing by 8.6 per cent or 244,371 people over the year. This influx of people contributed 1.1 percentage points to the annual population growth.
Housing Industry Association Economist Geordan Murray said migration would be responsible for an increased amount of Australia's population growth in the coming years. In fact, the ABS's middle range estimates for growth have indicated an anticipated 240,000 migrants per year - on par with the level seen during 2012/13.
"The latest data shows Australia’s population has continued to grow at an above average pace and official projections show this is expected to continue," said Mr Murray in a December 17 statement.
"Healthy levels of skilled migration, such as we are currently observing, will become increasingly important if we are to see the productivity improvements that will deliver sustainable advances in living standards."
There has also been an increasing demand for property across the nation. With a population growing rapidly every year, it's becoming important to provide enough accommodation for all the new residents.
This could offer an opportunity for buying land and building a developments, in order to bolster a investment property portfolio in the future and secure a place in fast-developing metropolitan areas.