After racking up record population growth over the past two years, Australia's population boom is set to slow considerably in 2010/11 and 2011/12 according to a new study.
BIS Shrapnel said national population growth will slow to about 1.5% in 2010/11 and 1.3% in 2011/12 as net overseas migration declines from record highs.
"Most of the rise in net overseas migration over the past three years has been the result of a surge in the number of long-term visitors, not permanent migrants," said Jason Anderson, BIS Shrapnel's senior economist.
BIS Shrapnel said there have been two main groups behind this rise in long-term visitors - skilled workers under Temporary Business (Long Stay) visas (the 457 category), and international tertiary education students.
"We should expect to see some dampening of household spending growth but there should also be some alleviation of inflationary pressure that has resulted from the strong demand growth for domestic goods and services," said Anderson. "In terms of the housing sector, shortages will remain and there will be less upward pressure on interest rates."
BIS Shrapnel said even with lower population growth, the rate of new dwelling construction will remain below underlying demand, so shortages will persist and rental markets will stay very tight.
Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker
Top Suburbs :
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus and appointment is free.
We value your privacy and treat all your information seriously - you can check out