Recent data reveals the growing concerns of both the Australian government and investments related to surging population growth. That’s because it is playing a major role in pushing property prices up nationwide with reduced housing affordability. From September 2023 to September 2024, Australia’s population rose by 1.8%, putting pressure on property prices.
But did this growth occur in all states equally, or was one region responsible for such a price increase? Let’s figure it out together:
Statewide Analysis of Population Growth
Looking into the figures for Victoria and Queensland, we can say that the population here crossed the national level. While in Victoria the population grew by 2.1%, Queensland stood second with 2% annual population growth. Meanwhile, in Western Australia, the population grew at a peak of 2.5%.
Other states are also not less than those, in New South Wales, the population grew by 1.4% and in South Australia by 1.2%. Figures say that in the ACT (Australian Capital Territory), too, property prices grew by 1.5%. This signals that not only one state but all the states are subsequently contributing to high population growth. As a result, we are experiencing a housing crisis backed by high property prices, especially in Western Australia.
Now, let’s analyse population growth at the capital city level.
Capital City Level Population Growth
Statistical data revealed that in capital cities, in total, the population grew by 2.4%, around 427,800 people. This growth even outpaced overseas migration (373,000 people) and a natural population increase (89,500).
Following the trend, Melbourne’s population rose to 142,600, leading growth, while Perth recorded the highest growth rate at 3.1%. Brisbane’s population rose by 2.7%, with Adelaide at 1.5%, Hobart at 0.4%, Darwin at 0.9%, and Canberra at 1.6%.
Thus, both the overseas population and the internal natural population are contributing to overall population growth. Meanwhile, Perth, WA, recorded the highest rate of population growth.
The Analysis of Property Prices Growth
Since the population is growing, property prices are also rising, so how much are property prices growing at present? The rising population increases the demand for housing, contributing to higher property prices.
In Perth and regional WA, property prices grew significantly by 11.5% and 11.9%, respectively. Likewise, in other areas of capital cities like Queensland, it is 8.8%, Brisbane, 9.4%, and both in Adelaide and South Australia, 11.3%.
However, the one factor that is common in these rising property prices is the growing migration. Since Western Australia is comparatively affordable for home purchases, more people are migrating there. This migration is therefore complicating the situation and worsening the housing availability crisis. So, what is the solution, then?
Ongoing Government Initiatives And Solutions
Such property price increases severely affect the entire property market, particularly first homebuyers and investors. Concerning this, the government is working on different initiatives like stamp duty exemptions for first-home buyers. Providing grants under special programs like FHOG (First Home Owner Grants) and regional grants are also some of the government initiatives.
In the meantime, the Australian government is also considering construction projects that are more reliable for customised living spaces. For example, the government is now investing in co-living construction projects. These projects are not presenting an ideal solution to housing shortages but are also budget-friendly. Not earlier, around 90% of co-living activity took place in Sydney itself, highlighting its potential to solve the issue.
Additionally, the government has recently banned foreign property investments for now. The government has done so to manage internal housing demand. This is another initiative that can improve property prices and regain homebuyers’ and investors’ confidence.
Final Thoughts
Hence, we can say that amid the rising property market, the population is mostly growing in Western Australia. That’s because of the ongoing government initiatives and measures, like co-living, banning foreign property investments, and comparatively lower property prices.
Also, most of the population is coming from migration rather than from natural growth. Investors and first-time homebuyers can therefore plan for affordable home purchases while carefully taking into account all relevant factors. This is because the rising population is ultimately making homes less affordable and requires thoughtful decision-making.
So, how are you going to plan for your next investment?
For more such types of insights, read our related articles.
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