The headline from the released ABS population estimates shows Victoria has reached a population of 6 million! This feat sees Victoria outpacing New South Wales (1.4%), Queensland (1.3%) and Territory (1.3%) to take the number 1 spot. In 2016 Victoria grew by 114,900 people, representing a population increase of 1.9%. According to the ABS it is “the fastest population growth for Victoria since 2009 and is well above Australia’s growth rate of 1.4 per cent.”
New South Wales grew by 1.4%, following closely behind.
Interest from our local clients is understanding the ‘why’ and ‘how’. In unpacking the component drivers of population change we can see the resurgence being aided by migration, international students and interstate migration.
Nationwide net overseas migration (NOM) reached 180,000 people (2.0%) with Victoria making up a one third (62,800). The second greatest contributor to population was natural increase (+37,000) and net interstate migration (+14,500).
From a property perspective our research has shown concentrations of international students and young workers orientating towards suburban hubs and mixed-use projects positioned near activity transport and education.
We observe also that the Australian Bureau of Statistics has forecasted that Victorian will reach 7 million by 2024. Not surprising I guess given strategic infrastructure plans outlining a 30 year pipeline of investment, which is driving Greenfield development opportunities. The latest new dwelling approval data confirms Melbourne ahead of all other capital cities in terms of dwelling supply.
About the author:
Andrew Kiggundu is a recent addition to the MacroPlan Victoria team. He joins as an Economic Analyst with a background in Property and Law.
MacroPlan’s experienced and qualified economists align their understanding of macro-economic forces with micro-economic variables such as geographic and industrial characteristics, demographics, labour market shifts, resource demand and commercial realities. Contact Joel Taylor, National Business Development Manager today to discuss your property research requirements.