Home News Record migration to fuel housing investments

Record migration to fuel housing investments

Font size :
Nila Sweeney

Australia has become the land of opportunity for more than 430,000 overseas migrants, with international arrivals to March this year accounting for more than half of the nation's population increase.

Australia's net overseas migration of almost 200,000 people represents an all time high, reports the Australian Bureau of Statistics (ABS).

In the twelve months to March 2008, 430,000 overseas migrants arrived and 230,000 departed, an average of 1,180 overseas arrivals and 630 departures per day.

It can't be stressed enough that Australia's migrant boom is "a big deal", said Savanth Sebastian, equities economist with CommSec.

"The remarkable lift in Australia's population has significant consequences for the economy, as the faster rate of population growth means that the economy can grow at a faster pace," Sebastian said. "However, all the extra people also put greater demands on our economy. Extra productive capacity is being added, but it carries with it some extra inflationary risks."

A whole raft of companies will benefit from this population growth, Sebastian added.

"More people are coming to our shores, but we are not building enough homes," Sebastian said. "The strength of Australia's population growth points to the likelihood of strong housing construction in 2009. Building material companies, developers, retailers and banks have potential to gain from the lift in housing activity."

In March 2008 Australia's population reached 21,283,000, an increase of 1.6% (336,800 people) from the previous year.

WA recorded the fastest population growth at 2.6%, followed by Queensland and the NT at 2.2%. Victoria grew by 1.7%, the ACT at 1.4%, SA and NSW at 1.1%, and Tasmania 0.9%.

The strength and growth in population will continue to put further upward pressure on the demand for housing, and while the supply of housing remains far short of demand, "we are seeing that the housing sector is slowly starting to build more homes".

"The rental market is the tightest in 18 years and can't get much tighter," Sebastian said. "The strength in rental yields and a more uncertain outlook for the share market is likely to see more investment in housing over the coming months."

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

New social housing aims to transform Ivanhoe Estate New social housing aims to transform Ivanhoe Estate

The sprawling redevelopment aims to boost the supply of affordable housing in Sydney Read more

A new suburb will be built in west Melbourne A new suburb will be built in west Melbourne Mount Atkinson will become home to more than 22,000 people over the next 15 years ... Read more

Surging house prices threaten liveability in Melbourne Surging house prices threaten liveability in Melbourne Analysts warn the city could become just as unaffordable as Sydney, if property trends continue ... Read more

More Aussies would benefit from regional hubs linked to cities More Aussies would benefit from regional hubs linked to cities Shorter commutes could spur higher home sales in regional towns, analysts say ... Read more

More mortgage news and articles

Sponsored Links

Sunday, Aug 20, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords