Why future housing demand could drop

By |
Population growth has stalled, which could dent future housing demand.

New figures from the Australian Bureau of Statistics show Australia’s population increased by just over 396,000 new residents over the 2013 calendar year, down 9,300 from the annual period ending June 2013.

RP Data research director Tim Lawless said population growth statistics serve as an important indicator of housing demand.

Lawless said population growth has been winding down since mid-last year, though at 1.7% per annum, it remains well above average. 

On a state-by-state basis, NSW has seen the largest increase, followed by Victoria, Queensland and Western Australia.

Both NSW and Victoria also saw a healthy upward trend in overseas migration, but WA and Queensland are seeing dwindling numbers of overseas migrants. Lawless put the decrease down to the slowdown of the resources sector. 

Overall, Lawless predicted a slowdown in population growth could impact future housing demand.

“With population growth winding down we can expect some further easing of housing demand, both from a sales and a rental perspective," sais Lawless. 

"The slowdown seems to be most pronounced in the mining states of WA and Qld where population growth conditions have previously been the strongest."

Can you afford to buy in this suburb? Find out how much you can borrow

Top Suburbs : upper kedron , mortdale , mt colah , millner , alexandra hills

go back

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.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here