Carefully selected Australian property shows great investment potential in today’s market. Australian property has been popular in the international markets as a one of the most stable and resilient property investments in the world. Below you will find out why property in Australia offers you such promising investment growth.
Australia’s estimated resident population as of 2018 is just under 25 million, an increase of 1.6% over the previous year and one of the highest population growth rates in the Western world. Australia’s population is estimated to increase by some 60% to around 34 million people by the year 2050.
The growth of Australia’s population has two components: natural increase (the number of births minus the number of deaths) and net overseas migration (net permanent and long-term migration plus the migration adjustment). Since Federation in 1901, Australia’s population has increased by over 18 million people. The main component of population growth in Australia has been natural increase, which has contributed about two-thirds of the total growth since the beginning of the 20th century. Estimates provided by the National Housing Supply Council’s 2015 State of Supply Report point to a current under supply of 178,000 dwellings with annual undersupply running at approximately 23,000 dwellings. This report points to a structural imbalance between demand, driven by strong population growth, and the construction of new dwellings.
Australia has one of the strongest economies in the world, with almost two consecutive decades of growth and the unemployment rate falling to generational lows. As a result of nearly three decades of structural and policy reforms the economy is flexible, resilient and increasingly integrated with global markets. The strength of Australia’s economy has been highlighted in recent years by its ability to withstand a number of internal and external events, including a major drought, a housing boom and the Asian financial and economic crisis.
As a result of the continuous structural and policy reforms implemented since the 1970s, Australia today has a sound, stable and modern institutional and regulatory structure that provides certainty to business and offers a welcoming destination for investment. Australia has lowered barriers to trade and investment and there is substantial competition across the economy, including in key areas such as the financial, air transport and telecommunications sectors.
Australia welcomes foreign investments. It recognizes the important role of foreign investment in boosting economic growth, developing competitive industries, creating jobs and increasing exports. The stock of foreign investment in Australia (portfolio, direct, financial derivatives and Real-estate) in June 2015 totaled $2.1 trillion. Portfolio investment makes up about 63 per cent of total foreign investment. In 2006–07, foreign direct investment totaled $331 billion. In the decade to 2007, Australia was the fifth largest net recipient of foreign direct investment in the OECD.