Surging Migration Increases Demand for Australian Housing
by: Investors Club
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The underlying demand for housing in Australia is set to increase because of decision by the Australian Federal Government to boost migration levels significantly during the 2008-09 financial year.
In 2008–09, the Federal Government will increase skilled migration by 31,000 places, taking the skilled stream of the migration program to 133,500 places. The overall migration program will rise to 190,300 places.
In addition, more than 100,000 temporary skilled migrants on 457 visas are expected to arrive in Australia in 2008–09.
A total of 39,500 subclass 457 visas were granted in 2003–04 compared with 49,700 in just the first half of 2007–08.
The Minister for Immigration and Citizenship, Senator Chris Evans, said the temporary skilled migration program is expected to exceed 100,000 places in 2007-08 and 2008-09.
Population growth is a key driver of the real estate market because it leads to a rising demand for housing. This demand is driven by both people who wish to live in Australia and those on working visas.
Overseas migration is playing a key role in Australia’s population growth. In Western Australia, overseas migration now accounts for more than 50% of the overall population growth rate.
It is expected that the surge in overseas migration will have an immediate impact on the rental market which is good news for property investors who can look forward to falling vacancy rates and rising rents during the coming financial year.
The Investors Club research department will examine the impact of rising migration levels on the Australian property market to identify those areas that will benefit most from this trend.
An interesting fact about migration is that around one million migrants arrived in each of the five decades following 1950:
• 1.6 million between October 1945 and June 1960
• 1.3 million in the 1960s
• 960,000 in the 1970s
• 1.1 million in the 1980s
• 900,000 in the 1990s
We are reaching one million migrants now in four years and today, nearly one in four of Australia’s 20 million people were born overseas. The United Kingdom has been the major source of migrants in recent years.
About the Author
For more information about Australian property investment, talk to The Investor's Club. The Investors Club was created by Kevin Young, an Australian property investor and CEO of The Investors Club.
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