Much of the nation was shocked to see our population surpass 25 million in mid-2018. Australia hit the milestone 33 years earlier than expected, driven by strong immigration levels and economic prosperity. Original forecasts by the government run body didn’t calculate the population to reach the current levels until halfway through the 21st century.
Late last week, the ABS released new forecasts in a hope to capture the future vision of Australia. The new release outlines what our nation, state and capital city populations will look like in the coming decades. The bureau considers population drivers (including quality of life and housing) to forecast where the largest number of residents will reside in the future.
The new data paints a picture of rapid growth for our country. As one of the 4 key drivers for our property markets, population growth is important to your investment decision. It acts as a strong indicator of where future housing demand will lie.
Although the last decade has seen our population grow at a rapid rate, our population could grow even faster throughout the next 10 years. If you would like to view the ABS release click here, otherwise an overview of the important points are below:
- Australia’s population could hit 30 million as early as 2029.
- The most conservative projections expect the population to hit 30 million by 2033.
- Victoria will be the fastest growing state in Australia.
- By the middle of the century, Melbourne is forecast to have 200,000 more residents than Sydney.
- Tasmania is expected to increase by only 18,000 over the next 9 years.
Australia’s Forecast Population (Source: ABS)
Much of the capital growth in our markets over the last boom can be attributed to the rapid rise of our population, where demand levels grossly outweighed property supply. All of the ABS findings point to a strong case for property investment. Our population is set to take off, marking an exciting time for those invested in residential property.