Overseas migration stimulates housing sector
Overseas migration and population growth are going to be the driving forces for the residential property market in the future, one expert has suggested.
CommSec chief economist Craig James said Australia's population has continued to steadily increase, with annual growth reaching a three-year high during the 12 months to June from 1.49 per cent to 1.61 per cent.
During the same period, migration rose for the fifth quarter in a row to 208,300 people.
Mr James said the results are a positive sign for the housing sector.
"Population growth is again rising, underpinned by migration. And if more people are coming to Australia that means greater demand for houses, cars and retail items. Clearly faster population growth is good news for builders and retailers," he told Property Observer.
Western Australia was a popular destination for overseas migrants wanting to settle, with the state claiming 23 per cent of the total number, compared with 18 per cent the year before.
Population also grew exponentially in Western Australia by 3.3 per cent over the year - significantly more than the national average.