Capital city population growth is the highest on record

Posted by Joshua Mellick

Last year, ABS data indicated that Melbourne would be Australia’s fastest-growing city over the next ten years. This forecast still holds true, but in the year ending June 2023, Perth had the highest growth rate (3.6 percent), followed closely by Melbourne (3.3 percent) and Brisbane (3.1 percent).

The population of Australia’s capital cities grew over 500,000 in the year ending June 2023, marking the most significant annual growth recorded by the Australian Bureau of Statistics (ABS). Melbourne (up 167,500) and Sydney (up 146,700) had the biggest increase in 2022-23, with Perth and Brisbane adding over 80,000 people. Along with Adelaide (28,100), these five cities had their largest annual population growth since the start of the data series in 1971, underscoring the historical significance of these trends.

The recent surge in population growth across the country has led to a significant strain on available dwellings. As dwelling commencements across the country have sharply declined due to rising interest rates and increased construction costs, we will continue to see a severe undersupply in Australia’s property market over the next couple of years. This shortage of available properties, combined with a continuously increasing population, will inevitably drive property values upwards.

Population growth is a key factor considered throughout our research methodology. It has proven to be one of the main drivers for long-term property growth. At the moment, buying real estate anywhere in Australia remains a solid investment.

As we have been saying recently, with an expected interest rate cut late this year and forecasted further cuts next year, people who have remained patient will reap the benefits, and those on the fence about what to do should just take the leap.

Posted by Joshua Mellick, on 4th Jun 2024