It’s hard to deny that Australia is getting bigger by the day.
According to data from the Australian Bureau of Statistics, Australia’s population of 22.7 million people is expected to grow to 46 million by the year 2075. This is more than double its current size. Among other things, this will affect those who will be looking for a home loan in the future.
Home loans are not the only things that will be affected by this growth. One need only look at the recent state and federal budgets to see that the government is pumping money into infrastructure all around the country in order to keep up with an ever-rising population.
Budgets go large on infrastructure
The federal budget has allocated $50 billion to Australian infrastructure. This investment will help build an East-West link in Melbourne, a freight link in Perth and help fix up various obsolete roadways around the country.
It will also give $3.5 billion for the development of the quickly growing Western Sydney region.
States and cities have also rolled out similar plans. In its own budget, Western Australia outlined a $23.7 billion infrastructure program which will build several new hospitals, a state museum and a stadium. Meanwhile, Sydney recently approved a $1.94 billion infrastructure for its central city.
What does this mean for property buyers?
Whether you’re a property investor or a residential home buyer, these developments could very well have a huge impact on your fortunes. Before you bust out the home loan calculator, you’ll want to read on.
New research from data provider Timetric found that Australia’s rising population is pushing up the property market.
“A growing population and improving economic and social conditions have led to a rising demand for new homes. The market is set to grow at an annual rate of around 7 percent in nominal terms up to 2018,” the group said in a statement.
The booming Australian population has the potential to tighten up a property market which first home buyers are already finding tough to enter. Increased competition for affordable and adequate residential homes which are close enough to the CBD to commute from may well raise property prices – good for investors, but not so beneficial for ordinary home buyers.
At the same time, the various improvements, developments and additions to states, cities and regions may make this a moot point. By increasing access to areas further out, and reducing congestion and commuting times, buyers could find that living further out from a major city or its CBD won’t be as big of an issue.
Still, by increasing the livability and vibrancy of these cities, don’t be surprised if property prices rise thanks to these improvements – or if a lot more residents become attracted to these areas.