State of the market 2023 and beyond
MONTHLY VACANCY RATES ACROSS THE NATION from Aug 2022 – Aug 2023
With vacancy rates being historically low across the entire nation, housing supply issue will be a topic of discussion and action in 2024. Factors to lowering vacancy rates are :
lack of new supply [a national & international issue]
development challenges eg labour & materials
expats returning from overseas
investors selling their investment properties
Even in challenging times and environment like these, there will always be opportunities to be had.
BE MINDFUL OF THE GAP – Median House Price vs Median Unit Price in Melbourne
Median house prices shows $420,000 vs $380,000 in 2007, a $40,000 gap. A short 16 years later the gap has widen to median Houses at $990,000 vs Units $540,000, a $450,000 gap. This disparity will only push people towards units be it terrace homes, townhouses or apartments - when it comes to affordability.
AUSTRALIA REMAINS AN ATTRACTIVE DESTINATION WHEN IT COMES TO MIGRANTS
Top 3 inflow and outflow for 2023 out from China, India and UK into Australia, UAE and Singapore.
With research resources combination above to 2025 on migration hitting approximately 1 million and population growth in Australia at 14%, the migration related demand of business and opportunities is massive.
Big cities to dominate population growth
By PEXA & Informed Decisions (.id) | Oct 2023
New national forecast data finds regional renaissance has ended
.id forecasts 7.4 million more Australians by 2041, requiring 2 million new homes across our four major cities
Melbourne, Australia: The COVID-inspired rush to the regions is over, with two thirds of Australia’s population growth in the next two decades to be concentrated in the big four cities of Sydney, Melbourne, Brisbane and Perth.
Exclusive forecasts released today by PEXA’s 100% owned demographic consulting business, Informed Decisions (.id), reveals that the nation’s population is forecast to grow by 7.4 million by 2041, requiring an additional two million dwellings across our four major cities which will account for over 65% of forecast population growth.
Following a five-year period of significant growth in regional areas, in part driven by COVID-19 and work-from-home trends, a re-opening of national borders is seeing a return of urban population growth that is forecast to continue for many years to come.
Key findings
The four largest states will receive 93% of Australia’s forecast population growth to 2041, with the four capitals receiving 67% of that total growth.
Victoria’s population is forecast to add 2.0 million with 1.6 million occurring in Greater Melbourne and requiring 723,000 additional dwellings
New South Wales population is forecast to add 1.7 million with 1.2 million occurring in Greater Sydney and requiring 582,000 additional dwellings.
Queensland is forecast to add 1.6 million with 1.0 million occurring in Greater Brisbane and requiring 381,000 additional dwellings.
Western Australia is forecast to 0.9 million with 0.8 million occurring in Greater Perth and requiring 334,000 additional dwellings.
Tasmania is forecast to face a demographic imbalance problem with young people once again leaving to the mainland and people in retirement age groups continuing to move to Tasmania.
Sunshine Coast is forecast to triple its retirement aged population over the next 25 years caused by a combination of migration from other regions/states and the current population ageing in place.
