The ABS released their latest population data today, based on March 2016. Sustained population and household growth is expected, which will support property values for some time to come. We have more than 9.2 million households and recent growth has been supported by net migration.
Total population is north of 24 million and overall Australia’s population grew by 327,600 people (1.4 per cent). Of this, net overseas migration added 180,800 people to the population (2 per cent higher than the previous year), and accounted for 55 per cent of Australia’s total population growth.
Natural increase contributed 146,800 additional people to Australia’s population, made up of 304,300 births (1.6 per cent lower than the previous year) and 157,500 deaths (1.7 per cent higher).
Over the year, net overseas migration was the major contributor to population change in New South Wales, Victoria, South Australia and Tasmania, whilst natural increase was the major contributor in all other states and territories.
Victoria’s population has hit 6 million growing by 1.9 per cent, adding an extra 114,900 people to the population. This is the fastest population growth for Victoria since 2009 and is well above Australia’s growth rate of 1.4 per cent. New South Wales was the next fastest state, increasing by 1.4 per cent. Queensland and the Australian Capital Territory were not far behind, with both growing at 1.3 per cent.
Net overseas migration was the main contributor to growth in Victoria, adding 62,800 people to the population over the year ending March 2016. The remainder of Victoria’s population change was explained by natural increase (+37,600) and net interstate migration (+14,500).
The Victorian population is projected to reach 7 million in 2024 and the forward projections to 2036 show more households in Greater Melbourne than Greater Sydney.
Overall household estimates for 2036 show a population of more than 12 million households, up from 9.2 million in March 2016.
Of course these long range estimates are indications only, but it would appear demand for property will be sustained – another reason why it is unlikely we will see a major property correction anytime soon.
