Why invest in Australian Property?
Australia is the world’s largest island. It has a population of over 21 million people with a very low population density. The majority of the population are concentrated in the major capital centres and along the coast. Approximately 60% of the population is concentrated in and around the mainland state capitals of Sydney, Melbourne, Brisbane, Perth, and Adelaide. The capital of Australia is Canberra located in the Australian Capital Territory (ACT).
Australia is comprised of 5 states and 2 territories. The states are New South Wales (NSW), Queensland (QLD), Victoria (VIC), Western Australia (WA) and Tasmania (TAS). The Territories are Northern Territory (NT) and Australian Capital Territory (ACT).
The size of Australia is 7,686,850 square kilometres, which is about 20.3 times larger than Japan, although Japans population is over 127 million.
Australia is famous for the Great Barrier Reef located on the North East coast of the Queensland State. This has encouraged significant tourism to this area. Other famous icons in Australia include Ayres Rock, Bondi Beach, Sydney Harbour Bridge and Sydney Opera House, tropical rainforests of the Northern regions, vast deserts and rugged mountain ranges. Many high quality wines are nurtured in the southern regions of Australia including Adelaide and Victoria.
In recent years there has been a significant mining boom in Western Australia. This has been propelled by the needs of China and to a lesser extent India. The exploration of resources has increased across the country with new mining operations being deployed in Adelaide and Queensland.
Australia has a very prosperous economy with conditions expected to remain favourable for the long term. There is currently a very low unemployment rate (4.3% - January 2008) which is assisting with keeping a strong stable economy.
The Australian population is currently growing at about 1.5% per year. There is high demand for housing and the demand for housing is far greater than the supply in many areas. Demand has been increased due to higher migration from overseas, smaller household sizes, higher divorce rates and many people moving out of home at a younger age. This demand is centred mainly on units as they are more affordable than housing. Due to imbalance in the demographics of the Australian population there are also a very high number of retirees that are looking to down size from their existing family homes into smaller units.
Historically Australia’s property has performed very well. Over the last 100 years, the Australia property market has on average increased by approximately 10% per annum. A recent report by a major Australian bank has quantified that since 1984, the Australian property market growth has averaged 13.4% per annum. The Australian property market has also experienced fewer declines than most other international markets.
Australia is a good location to invest in property based on a stable economic environment, low unemployment, consistent population growth and a safe legal structure that will protect you and your investment. Enquire today about investing in a carefully researched and selected property.