Australia’s population is projected to grow, with an estimated 29.9 million people expected to live there this year. One of the primary factors driving this growth is the Australian government’s initiative to address job shortages by bringing in more migrants. As a result, the demand for housing is expected to increase significantly. This surge in new residents will increase the housing market’s mounting pressure.
Furthermore, migration to Australia’s major cities is expected to remain robust as individuals are drawn to these urban areas’ amenities and employment opportunities. The economic impact of Australia’s combined capital cities will remain strong, with a growing population of individuals living and working in these areas. Consequently, housing prices are likely to continue rising.
Population increase (especially migration) is a significant driver of rental demand and rental price growth in the short to medium term. When most migrants first arrive in a new city, they rent an apartment.
This year, the federal government plans to issue 195,000 visas.
Most major cities in Australia already have meagre vacancy rates. According to CoreLogic and SQM Research, Perth has the nation’s lowest vacancy rate (0.5%), while Adelaide and Hobart also have vacancy rates below 1%.
| S.no | Location | Annual change | Distribution |
| Capitals | |||
| 1 | Sydney | 97,400 | 20% |
| 2 | Melbourne | 133,750 | 28% |
| 3 | Brisbane | 56,400 | 11% |
| 4 | Adelaide | 21,350 | 4% |
| 5 | Perth | 49,250 | 10% |
| 6 | Hobart | 5,410 | 1% |
| 7 | Darwin | 3,515 | 1% |
| 8 | Canberra | 11,225 | 2% |
| Total capitals | 378,300 | 76% |
| S.no | Location | Annual change | Distribution |
| Rest of the state/territory | |||
| 1 | New south wales | 34,350 | 6% |
| 2 | Victoria | 23,400 | 5% |
| 3 | Queensland | 47,350 | 10% |
| 4 | South Australia | 2,975 | 1% |
| 5 | Western Australia | 6,085 | 1% |
| 6 | Tasmania | 3,245 | 1% |
| 7 | Northern Territory | 945 | 0% |
| 8 | Total regional | 118,350 | 24% |
| Australia | 496,650 | 100% |
The majority of the population increase over the next decade is expected to occur in capital cities, with the majority of this growth settling in Sydney, Melbourne, Brisbane, and Perth.
Victoria:
Melbourne’s population fell by 1.6% in 2020-21 when foreign migration halted, and thousands of residents went interstate, primarily to Queensland.
Regional Victoria experienced population growth throughout the pandemic.
However, Melbourne is still on track to surpass Sydney as the country’s largest city by 2031-32, with a population of 6.1 million the following year.
Victoria’s population is expected to grow from 6.6 million today to 7.8 million by 2032-33.
New South Wales:
The population of New South Wales is expected to be 8,207,000 in 2023, rising to 9,804,000 by 2041.
Queensland:
Queensland’s population is expected to be 5,319,000 in 2023, rising to 6,545,000 by 2041.
Tasmania:
Hobart’s population is expected to reach 300,000 by 2033, with another 350,000 people residing in other parts of the state.
Western Australia:
Western Australia’s population is expected to be 2,702,000 in 2023, rising to 3,314,000 by 2041.
South Australia:
South Australia’s population is expected to grow from 1.8 million to 2 million by 2032-33.
Adelaide’s population is predicted to grow from 1.42 million to roughly 1.6 million by 2032-33 from 1.42 million.
Northern Territory:
The Northern Territory’s population is predicted to gradually expand from roughly 249,000 at present to 293,000 by 2032-33.
Australian Capital Territory:
The population of the Australian Capital Territory is expected to be 439,000 in 2023, rising to 541,000 by 2041.
Conclusion:
The population expansion in Australia, notably through migration, will likely continue to benefit the property market. Housing prices and rental expenses are projected to rise further in the short to medium term due to high demand and low vacancy rates. The metropolitan cities, particularly Sydney, Melbourne, Brisbane, and Perth, are predicted to see the most population growth. Australia’s population is expected to grow dramatically over the next decade, with variable growth rates between states and territories. These demographic shifts are projected to significantly affect the real estate market, particularly in places with rapid population growth. For More Such updates Follow Success Avenue Property Consultancy.