As the world economy recovers,

Australia is seeing a population boom that

continues to put pressure on housing

Population expansion is a fundamental key to the property market as it brings

on more demand for housing. According to the ABS, Australia’s population expansion

has hit a new record with an increase of 439,000 new residents over the year

to March 2009. To provide a little perspective, in real numbers Australia’s population

growth has never been this high. The higher the population growth, the more homes

need to be built to accomodate the increase. In percentage terms, the population

growth has not been at this level since the baby boom. Unfortunately, there is a

major difference between housing demand and housing supply; to put it in simple

terms there is simply far too few new homes and units being constructed to provide 

accomodation for our growing population.

Rental markets around the country have shown large increases in rental rates over

the last three years. However, over the last three months rental rates have peaked

and in some areas have fallen. Rental rates will most likely start to increase again

due to a shortage of rental housing and a pull back of first home buyer demand

coupled with record levels of population growth. With vacancy rates remaining at

historic lows across the capital cities, any relieif for renters is likely to be short-lived. 

Demand for rental accomodation has temporarily eased as many renters have taken 

advantage of the improvement in housing affordability brought about by both low

interest rates and the boost to the First Home Buyers Grant.

Locally there are still very few homes for rent and the rent being asked is still

increasing in the regional areas. Sales are still going strong with anything hitting

the market going under offer very quickly. many agents are experiencing a great

shortage of stock to sell. Some agents have even closed their doors due to a lack

of property to sell. If an agency depends on sales alone, they could end up in trouble.

 

 

 

www.nobullrealestate.com.au

 

25/09/2009