Immigration levels ensure long term growth for Australia’s property market
Why Australia remains one of the world’s most attractive markets for commercial real estate
It may be small by global standards, but Australia’s population is growing strongly, thanks to healthy immigration levels.
As of the end of June last year, just over 28 per cent of Australia’s resident population had been born overseas. Over the two years to the end of June, the population grew by nearly 381,000 as a result of net immigration.
And that is in the context of a population that is currently about 23.9 million and that has been expanding at an annual rate of about 1.4 per cent. All the newcomers need to be housed. And they will shop.
In addition, Australians need somewhere to work. Given that the Australian services sector accounts for about 58 per cent of the economy, and manufacturing just 7 per cent, their workplace is more likely to be an office than a factory.
Australia’s long history of attracting and assimilating migrants contributes to a virtuous circle. New migrants make a positive contribution to an economy that has been growing by a little over 3 per cent and where inflation is around 1 per cent. The local unemployment rate currently sits at 5.8 per cent.
These numbers look good in comparison with most other developed countries, many of which are battling economic stagnation, high unemployment and/or deflation (i.e., falling consumer prices).