Immigration numbers pushing up Australian house prices

by Ray Clancy on January 7, 2014

in Australia, Australia Immigration, General Information, Property in Australia

Immigrants arriving to work and start a new life in Australia are pushing up property prices which have increased by 10% in 2013, it is claimed.

According to property experts UCHK Consulting who consult to Australian Immigration, understanding or predicting the country’s real estate market is about immigration policies and overseas investors opinions of Australia’s economic prosperity.

property market

Data show that property prices in Sydney rose 14.5%, Melbourne prices rose 8.5% and Adelaide prices rose 2.8%

‘The national affordability factor and immigration trends are as important as the recorded increase in property values and will play an important role in future potential for capital growth,’ said UCHK chief executive officer Scott Talbot.

He pointed out that Australia is one of the only nations in the world that can boast a thriving ‘Third Economy’ based on immigration that dramatically influences property values.

He says that Australia undeniably wins in popularity, ‘Walk down a street in any country in the world and ask a simple question: “Today, we are handing out passports. Which country would you like to live, work and raise your family?” The response is more likely Australia,’ he explained.

Talbot also pointed out that Australia is a nation built on immigration. Nearly 50% of Australians are either born overseas or have a parent born abroad. He believes that it has become a leading country because many ethnic groups have enriched it culturally, socially and economically.

The Australian government wants 200,000 more immigrants per year for population, participation, and productivity growth and as such Australia’s economic policy and real estate capital growth is joined at the hip with immigration. ‘Immigration is the single most important factor that secures Australia’s Third Economy and a future of sustainable real estate capital growth,’ added Talbot.

The latest figures from RP Data show that property prices in Sydney rose 14.5% to $655,250, in Melbourne prices rose 8.5% to $563,000, in Darwin prices rose 3.3% to $540,000, in Canberra prices rose 3.5% to $530,000, in Perth prices rose 9.9% to $520,000, in Brisbane prices rose 5.1% to $445,250, in Adelaide prices rose 2.8% to $386,000 and in Hobart prices rose 2.2% to $330,000.

Talbot said that the popularity of Australian real estate investments from China and South East Asia has spanned two decades and immigration is expected to continue be the major influence in 2014.

{ 2 comments… read them below or add one }

Andrew Smith January 8, 2014 at 10:08 am

I’d suggest that the real estate market and especially media promotion is ‘smoke and mirrors’ where real estate fundamentals make no sense.

Much of their data is confusing or simply manufactured to present ever increasing buyer interest, prices etc., e.g. auction ‘clearance rate’ data.

The big issue emerging is that prices are being driven, in my opinion, not by immigration but low interest rates, shareholders scared by GFC and tax perks given to ‘baby boomer’ investors (often via thier private pension/superannuation fund).

However, ‘baby boomers’ born 1945-60 have started retiring, this will become a flood…… meaning opportunities for skilled immigration, but baby boomers will need to cash in their investment properties for cash and other more liquid assets.

Reply

Rob February 27, 2014 at 10:31 am

Australian property stats are heavily laden with each state’s real estate industry. Just like unemployment figures and the Consumer Price Index (CPI), they are a fairly meaningless, cherry picked data that serves the vested interest. If the CPI rules of the 1980s had not been manipilated again and again for political advantage, Australia’s official CPI would be 13%, which is what the ordinary Australian has experienced. So potential migrants please be aware that while Australia is a great place, we have the same devious, self serving elite as anywhere else in the world and official figures should be used for amusement only.

Reply

Leave a Comment

Previous post:

Next post: