Demographic statistics from the ABS point to housing demand: HIA

Demographic statistics from the ABS point to housing demand: HIA
Demographic statistics from the ABS point to housing demand: HIA

The recent Australian Bureau of Statistics’ demographic information release has been picking up by the Housing Institute of Australia (HIA), who explained that it pointed to a strong and ongoing demand for housing.

With Australia’s population ticking upwards, by 100,000 people in the September quarter of 2013, cites HIA economist Geordan Murray, the new total is 23.24 million.
“The result provides annual growth of a relatively strong 1.8 per cent,” said Murray.

In the year lead up to September, the birth minus death rate, also referred to as the natural population increase, increased the population by more than 164,000 people, to the tune of 2.9% growth and a 0.7% overall annual population growth addition.

“We have a situation where the importance of migration in securing the nation's future economic prosperity is widely, and appropriately, acknowledged. It is vital that the implications of stronger population growth for housing demand are reflected in a clear and strategic focus on housing supply policy from all levels of government,” he continued.

Net overseas migration also increased by 1% in the year to September 2013.

Population growth and the relationship with housing is a keenly discussed factor in Australia’s future. Observer Pete Wargent recently pointed to this aspect as the reason why Australian property is attractive to invest in.

“It's often said that where a population does not grow then GDP growth may likely stall, in part because Australia, like many developed nations, has an ageing population,” he explains of the dynamic.

Criticism has also been levelled at government bodies in the past for not planning ahead for population growth, and the HIA’s comments have been cited by Robert Simeon in regards to this back in December

The Urban Development Institute of Australia is suggesting more land releases and a closer look at policy.

Jennifer Duke

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

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