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Showing posts from January, 2014

THE KEY MARKET DRIVERS

What are the key economic fundamentals that drive our property market?
1)Population growth
Australia has one of the fastest population growths in the western world. Based on conservative assumptions, Economists BIS Shrapnel estimate Australia’s population will increase by 5.3 million within the next 13 years. With an average of 2.5 people per household this translates to a need for an additional 2.1 million new homes.
2)Construction of new housing
According to many analysts, Australia has a shortage of new housing.This is not true of all areas. For example there are pockets of oversupply such as apartments in the inner city of Melbourne and house and land packages in some new subdivisions in the outer suburbs.However, there is a constant shortage of housing in the popular inner to middle suburbs.
3)Employment
Unemployment in Australia currently sits under 6% which is far better than most other countries around the world. For the property market to be adversely affected by unemployment we …