Part two of our look into the McCrindle Social Trends study, looks into the Refinement of the Australian Identity.
Australia’s history is built on multi-culturalism. Migration is what has made our country what it is today. The cultural diversity is what makes our country the best in the world.
McCrindle’s study looks at what will occur this year politically and what impact the federal and NSW state elections will have on discussions around population growth, migration and the Australian identity.
So, what does this mean for the property market?
The reason our market has been such a strong performer over the years is the sustained demand for property in our capital cities. This is largely driven by migration, effectively property demand is all a result of population growth.
In 2018, Australia’s population reached 25 million, a milestone which saw their rank of most populated cities in the world rise to 53rd. Not only is our population growing but the average age is also increasing. In 1901 the median age was 22.5 years, this rose to 27.5 by 1970 and last year was recorded at 37.3.
Here’s our take on this study.
Over 67% of Australians live in capital cities. Australia’s population is growing at a rate of 1.6%. It’s our job to identify where the population growth is occurring and how this will impact demand for property. The eastern seaboard (Brisbane, Sydney and Melbourne) accounts for 78% of Australia’s population.
Over 88% of new population growth is also moving to the eastern seaboard. The disproportionate growth which has occurred in the country’s east means that a potential slow-down in overseas migration is unlikely to have a widespread effect on the nation. Brisbane and Melbourne continue to be the strongest benefactors of interstate migration buoying and under-pinning their markets. This along with various other macro-economic assessments results in Brisbane and Melbourne being identified as our approved markets.
Understanding the demographics of specific regions whether it be from a household size, age or cultural perspective is key to identifying the right property for a location. These are all taken into consideration prior to a project or suburbs approval.