The Impact of Solid Population Growth Over the Past Decade

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Solid Population Growth underpins Tenant & Buyer DemandEVERYONE seems to be talking about how people are flocking to the mining states … but does that really give a true reflection of what is occurring?

If you take a close look at the statistics, Melbourne is actually leading the country in increased population numbers.

In fact, it has added some 67,000 people during the 12 months to June last year. And Wyndham to the south-west (which includes Werribee) now holds the crown for Australia’s fastest-growing municipality, for the 2nd year running.

Last year, it added some 12,230 people — more than Adelaide and the Gold Coast. And nearly 10 times more than the Pilbra.

Melbourne’s steady growth has certainly not been lost on Dale Alcock — MD of Perth residential developer, ABN Group. In 2009, he expanded activities into Victoria; and has already become the state’s 9th largest home builder.

In last weekend’s AFR, Alcock was quoted in an interview as saying:

Maybe people in Sydney need to get used to the fact that maybe it isn’t going to be what it was. Maybe Melbourne is ultimately going to be bigger …

[Sydney] may well have become the financial hub … but what you see is that the growth going on in Melbourne is at the cost of Sydney.

Bottom Line: A growing population quickly translates into a greater demand for business services and ultimately, retail sales.

Over the past 5 months, CBRE and Colliers have reported a growing demand for Commercial property within the Melbourne CBD — by local and overseas investors.

Combine this with the RBA’s predicted flow-on the effect from the mining boom … and you have the stage set for solid growth in the Commercial property market, over the next 4 or 5 years.

 

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