If you’ve been following my blogs you’ll know that I feel confident about the long-term prospects for our property markets. These prospects will be supported by the dual pillars of strong population growth and a strong economy powered by a resources boom.
With the recent release of census data everyone’s talking about what’s happening to our population.
The fact is that despite strong population growth, we still need to “import” more people to fill the demand for skilled labour. And over the next 15 years, we’ll need to replace close to five million baby boomers that will retire and leave the workforce.
So it’s good news that Australia has emerged as the second most desired location for people to live and work, according to a recent report by recruitment firm Hydrogen Group, titled Global Professionals on the Move 2012.
The report says Australia’s lifestyle and standard of living made it so popular, as well as the career opportunities presented by the mining boom.
Ivan Jackson, the managing director for Hydrogen Group in Australia, was reported in the Herald Sun as saying that there were 404 natural resources projects taking place in Australia worth about $450 billion in total.
“A lack of relevant skilled professionals is one of the main barriers to bringing these projects to fruition,” Mr Jackson said in the report. “Many oil and gas projects are reaching a point where they will suddenly need several thousand extra workers.
“In the next two to three years recruitment to Australia will be at its highest ever.”
Where else is popular?
The survey, which was conducted by ESCP Europe late last year, found that the USA was the most popular destination to work. This was followed by:
- Australia, which tied second with the UK
- Hong Kong
What’s happening to Australia’s population?
Australia’s population is estimated to be about 22,600,000. You can get an updated figure by clicking the Australian Bureau of Statistics population clock.
Even though population growth has eased since peaking back in 2008, when over 380,000 new arrivals called Australia home, Australia’s population increased by around 1.4% last year, which means we’re still growing faster than most developed nations. And a large part of this is because of strong immigration.
Population and, more importantly, the change in population, are intrinsically linked with housing demand. To put it simply, more people means demand for more homes. And a prosperous nation means we can afford to buy or rent these homes.
This is all great news for property investors with a long-term perspective.
Michael Yardney is the director of Metropole Property Investment Strategists, a best-selling author and one of Australia’s leading experts in wealth creation through property. For more information about Michael visit www.metropole.com.au and www.PropertyUpdate.com.au.