Population growth keeps residential housing strong
Those concerned about the health and direction of the Australian housing market should be aware of ...
Those concerned about the health and direction of the Australian housing market should be aware of the latest research by business information provider Timetric.
According to their information, thanks to growing demand for housing, residential construction will be the quickest growing construction market in the country until 2018, forecast to grow at around 7 per cent each year up to this point, according to a June 3 statement.
Those interested in buying a property in the near future but holding concerns about the buoyancy of the market in the years to come should take some comfort in this news.
Growing population feeds demand
The research by Timetric found that this clamour for houses is being pushed by a growing population that increasingly requires available housing.
Australia has grown by 1.5 per cent a year over the 10 years to June 2012, according to figures from the Australian Bureau of Statistics (ABS). While growth rates are expected to decline, Australia is still predicted to grow heavily in the next 50 to 100 years.
While the country's population was last measured at 22.7 million people strong as of June 30 2012, the ABS predicts the national population will swell to between 36.8 million and 48.3 million by 2061, and between 42.4 million and 70.1 million in 2101.
Already, state, city and local governments are planning for the population growth that will hit their areas. Action plans, such as those for Sydney, South Australia and regional New South Wales, outline the need for the construction of tens of thousands of additional houses in these areas over the next decades, along with the reconstruction and improvement of existing infrastructure to accommodate newly bulging neighbourhoods and local government areas.
This could be encouraging news for both those after residential housing and those looking for an investment property. Housing and infrastructure projects mean more opportunities for residents to get their foot in the door, but, paired with burgeoning demand, could also see house prices remain high in the coming years - or even rise further.
Outside the city an increasingly attractive option
Timetric's research also pointed to the greater opportunities for property ownership outside the nation's metropolitan areas.
Close to 90 per cent of Australia's population lived in cities in 2012, making Australia one of the most urbanised countries in the world. One result of this is ever-higher property prices in central areas, which are driving residents out.
For example, while house prices countrywide grew by 9.5 per cent in 2013, in Sydney they increased by 14.3 per cent in 2013.
So while prices rise everywhere, buyers may want to look further out from the city centre when buying their first - or next - home.