Immigration drives the property market and it is still pedal to the metal
Immigration is set to drive Australia’s population over 24.5million. Immigration is concentrated around Sydney and Melbourne so you don’t have to be Einstein to work it out.
The persons per new dwelling approvals is rising and about to exceed the long range average. Obviously overcrowding is a big incentive to get your own home.
Pete Wargent Daily Blog: Immigration picking up the pace
Strong immigration numbers Government figures have long predicted an increase in immigration, and it does now seem as though permanent and long term arrivals are gathering pace in 2017……Australia’s population clock will tick past 24.5 million before the end of next week. Via petewargent.blogspot.com.au
Immigration forms the foundation of property demand
Besides the increased population the housing market has other factors influencing investment property. Low home loan rates are just one although they are moving upward. Unemployment is high as is organic population growth.
NAB: Long-dreaded housing crash unlikely
While house prices and construction levels will remain elevated compared to historic norms, the “triggers for a major price fall seem absent,” the team said.
Even though significant measures have been taken to cool the housing market, such as the latest curbs enforced by the Australian Prudential Regulation Authority (APRA), higher mortgages rates from the banks, and some credit tightening, demand for housing is fuelled by strong immigration and population growth, particularly in Melbourne. Unemployment also remains low, the NAB economists said. NAB: Long-dreaded housing crash unlikely
So What Do Current Immigration Levels Mean?
Basically absent significant other issues the influx of new people into our housing market will continue to drive prices. You can the NSW Budget 2017 – 18 throwing fuel on the fire to further push prices up.
Australian house price growth will slow but the catalysts for a crash ‘seem absent’ | Business Insider
Here’s the basis for its call: In general, while there have been some measures taken to cool housing such as APRA restrictions, some credit tightening and higher mortgage rates, immigration and population growth remain very strong, especially in Melbourne, and unemployment remains low. Australian house price growth will slow but the catalysts for a crash ‘seem absent’ | Business Insider
Why Worry About This Stuff?
Investment property is a proven long term performer so ask yourself. “Why am I worried about short term factors?”