Bernard Salt, a well-known Australian demographer and social commentator (and supporter of our research!) is confident that Australia is a fantastic place to invest in property over the next decade. In his recent column in The Australian, he shared his insights on why Australia stands out in the global property market. Bernard believes Australia offers…
Bernard Salt, a well-known Australian demographer and social commentator (and supporter of our research!) is confident that Australia is a fantastic place to invest in property over the next decade. In his recent column in The Australian, he shared his insights on why Australia stands out in the global property market.
Bernard believes Australia offers good prospects due to its safe community, steady population growth, and a culture favouring home ownership. He points out that while there are richer countries, none offer the same combination of growth prospects, personal freedoms, quality of life, cosmopolitan lifestyle, and agreeable climate as Australia.
Australia’s high rate of immigration also contributes to its strong property market. Last year, 31% of Australia’s resident population was born overseas, a figure that could rise to 33% by the end of the decade. This high proportion of immigrants is unique to Australia and plays a significant role in driving property demand. Unlike other developed nations facing declining fertility rates, Australia’s moderate fertility rate combined with skilled immigration ensures steady population growth.
In terms of population growth, both Melbourne and Sydney are expected to see their populations rise from five million to seven million by the mid-2050s. Bernard emphasises that this growth is a strong indicator of the thriving property market in Australia. He urges young Australians working in property to consider investing their careers in Australia, as it offers not just better prospects but also a superior quality of life compared to other major cities like London or Paris.
When it comes to investment, large cities aren’t necessarily where the best opportunities lie. Our soon-to-be-released Sunshine Coast Property Market Update goes to some lengths to show the key factors driving price growth. So, while these cities are projected to grow, the importance of strong internal migration (with the majority of movement coming from Sydney and Melbourne to South East Queensland) cannot be understated. For the sixth year in a row, the Sunshine Coast has remained the most favoured location in which to relocate.
When you look at the above chart (another sneak peek at our upcoming report) and note that 16% of all regional growth occurred on the Sunshine Coast in the 12 months to Mar 2024 while the next top 4 didn’t even crack 10%, ongoing growth is at good odds.
As per last week’s sneak peek, supply is the opposite. Check out this short clip from 7news where Mal makes the salient point that the undersupply is now so massive that if you picked up the entire region of North Lakes (the second largest master-planned community in Australia’s history), over 11,000 homes, and dropped it into the Sunshine Coast, there would still be an undersupply.
With continued growth and housing demand outweighing supply, along with a rapidly expanding economy (maybe next week’s sneak peek), the Sunshine Coast presents a great opportunity for investors.
From all the data we collect and the analyses we perform, the Sunshine Coast continues to present as Australia’s top potential residential property investment destination for the next decade. It is on a trajectory to become the greatest city in the country with the confluence of game-changing projects unlike any in Australia’s history. The region is undergoing significant transformation due to an expanding population and opportunities driven by an idyllic lifestyle, job creation, nation-leading infrastructure investment, and a strong, diverse economy.
Australia delivers developed-world growth prospects at scale combined with an unparalleled quality of life and manageable sovereign risk. For businesses and property investors looking for long-term growth, Australia stands out as a top choice, with the Sunshine Coast sitting at the top of the list of places to invest.