Rental property 'to become more popular'
The rental property market in Australia is likely to become more attractive, as the country experiences an influx of people from overseas.
Michael Matusik, an industry commentator on residential real estate and property development, wrote in an article for News Limited Network that while population numbers are on the rise, this doesn't necessarily mean more housing will be required.
"When looking at the Australia-wide picture, two-thirds of the recent population increase is due to an increase in overseas migration," he stated.
"But the reality is that for many of our newcomers, circumstances will mean that they will share space, occupying every room in a house and probably renting rather than buying."
His comments echoed recent remarks made by CommSec chief economist Craig James, who told Property Observer that migration is having a noticeable impact on the housing sector, with the number of people arriving in Australia from overseas increasing by five quarters in a row leading up to June 2012.
According to Mr Matusik, it is important that the residential property market responds to this trend in order to recover from its recent slump.
While population growth will no doubt lead to a housing demand increase in the long term, he added, this could take years to manifest and could provide less economic stimulus than previous multipliers would indicate.