Issue 16 | Thursday 11 August 2022 | The Latest Stats on Migration
Hi, it’s Andrew Bell here, it’s been great to see quite a pickup in investor activity because we continue to have a massive under supply in relation to rental accommodation.
I will go into more detail in a further report about this increased investor activity, but more importantly we need to have a close look about whether this demand for rental accommodation is likely to continue. We are finally starting to get some good research coming through in relation to population movements. I have touched on some of this previously but with older data. The most recent data shows that cities like Melbourne lost 60,500 people with Sydney faring significantly better just losing 5,200 people in the 12 months up until June 2021. Talking in terms of capital cities we see that Brisbane grew by 21,900 people which confirms that movement north. Clearly it’s the regions that have been picking up this shift with people moving out of cities. If we take a look back at Melbourne once again, we see that whilst the City of Melbourne lost 60,500 Victoria regional areas picked up by 15,007, clearly 45,000 odd moved elsewhere. Sydney had that loss of 5,200 but the regional areas picked up 26,800, perhaps some of the people moving from Victoria moved into New South Wales regional areas.
Let’s look at Queensland where the capital city grew by 21,900 and the regional areas grew by 24,100. Now when we are talking in terms of regional areas it’s not necessarily way out in the country but often it’s in the immediate areas adjacent to capital cities. Part of it is to get away from all the congestion of big city living but most definitely for many it’s for cheaper housing. Having a close look at Queensland in general we see the Gold Coast commanded a 35% market share of the state’s regional population growth and with the Sunshine coast not far behind it growing by 30%. Way in front of the next biggest region which is the Fraser Coast with a 7% growth. This trend now has been holding firm well beyond the end of lockdowns and restrictions and it’s truly suggesting that the centralisation has become a very normal choice for many Australians. Indeed, every time someone moves to the Gold Coast you tend to find over the next 2 – 3 years relatives or friends of those people follow suit, so we are likely to see this momentum continue for quite some time. As real estate prices get dearer and dearer in capital cities and work from home become more ingrained as a work practice this migration to warmer climates and more affordable real estate locations will stay with us.
We also saw recent reports that the percentage of people owning their own home has been in decline which means there is a growing percentage of our population that are adding to our rental demand, and so we can expect that demand for rental properties to be with us for a long time to come until we can solve the construction side of the equation. As I mentioned we will talk more about investor activity in the not too distant future other than to say right now that residential properties have proven to be one of the best investments in the country at present. Good capital growth, outstanding yields per annum and the security of bricks and mortar.
Once again one final shout out regarding our upcoming Spring Carnival Campaign which is about to get underway. If you are thinking of selling at present, please contact the details on screen because this will be the last significant promotion of Gold Coast properties this side of Christmas and the ideal way to get outstanding results in our market today.
Stay safe for now.
Andrew Bell, OAM
Chief Executive Officer
The Ray White Surfers Paradise Group