Australia’s property market is undergoing a transformation, fuelled by shifting demographics and population growth. With the nation’s population expected to reach 31 million by 2035, understanding where and how people are moving is important for both property investors and homebuyers. So, what do the latest trends tell us, and how can they impact investment strategies?
Population Growth
As populations increase, the demand for housing naturally follows. More people mean a greater need for homes, and when an area sees rapid population growth without a corresponding increase in housing supply, property prices and rents typically rise—creating opportunities for investors.
Recent Australian Bureau of Statistics (ABS) data shows that as of June 2024, Western Australia was leading the way with a 2.8% annual growth rate in total population, followed closely by Victoria (2.4%) and Queensland (2.3%).
New South Wales, Australia's most populous state, reached 8.48 million people, with a 1.7% increase from the previous year. This growth intensifies competition for properties in areas with good amenities and transport links.
The Migration Factor
While overseas migration plays a major role in population growth, interstate migration highlights clear regional preferences. Queensland and Western Australia were attracting the most domestic migrants, likely due to job opportunities, appealing lifestyles, and more affordable housing.
The Remote Work Revolution
The rise of remote work has significantly changed property market dynamics. By August 2024, 36% of Australians were regularly working from home, shifting housing preferences and where people choose to live. This has led to a 23.4% rise in net regional movement over the 12 months to September 2024.
Impact on the market:
- Regional areas are seeing increased demand as workers seek space and affordability.
- Areas with good internet infrastructure and lifestyle amenities contribute to migration preferences.
For investors, this means fresh opportunities beyond major metro areas. A once-overlooked regional area could now deliver strong long-term returns.
The Age Factor in Housing Demand
Australia’s shifting age demographics are driving changes in property demand. With the median age projected to rise from 38.5 years in 2022 to 47.6 years by 2071, the types of properties people want are evolving. At the same time, Millennials and Gen Z are entering the home-buying market, seeking homes that offer urban convenience, tech features, and adaptable living spaces, especially in city centres and inner-city suburbs.
Population Projections
Australia’s population is expected to reach 31 million by 2035, with 83% of growth concentrated in Victoria, New South Wales, and Queensland.
Key trends to watch:
- Victoria and Melbourne growing faster than Sydney and NSW
- Strong growth expected in Melbourne, Sydney, Brisbane, Perth
- Continued housing demand pressure in metropolitan areas
Final Thoughts: What This Means for Property Investors
Australia's property market is evolving as people’s preferences and living patterns shift. While cities continue to grow, regional areas are gaining appeal due to remote work and changing lifestyle choices. For investors looking to strategically invest in the ever-evolving Australian property market, keeping a close eye on demographic trends positions you to capitalise on emerging property hotspots, both in regional and urban markets.
Key Takeaways:
- Population growth drives demand.
- WA and QLD have benefited recently from higher levels of migration inflow
- Remote work is fuelling regional property interest, creating new investment opportunities.
