Unveiling the Impact: Migration Surge and Housing Markets in Australia
Australia is currently experiencing a significant but temporary surge in overseas migration, as highlighted by recent data from the Australian Bureau of Statistics (ABS). Between September 2022 and September 2023, the country’s population increased by 2.5%, equivalent to 660,000 people.
This influx of migrants has had noticeable effects on various housing markets across the country. According to CoreLogic, regions with the highest levels of net overseas migration also experienced substantial rent increases. For instance, in the 2022-2023 financial year, rents surged by up to 29% in these areas.
In Melbourne, both the CBD North and CBD West witnessed significant rises in overseas arrivals, leading to corresponding spikes in rental prices. In the Melbourne CBD North, 3043 immigrants moved into the area, resulting in a 28.9% increase in rents. Similarly, the Melbourne CBD West saw 2598 new immigrants, causing rents to jump by 25.2%.
The SA2 region of Rockbank – Mount Cottrell, situated on the western outskirts of Melbourne, emerged as the top migration destination in the country. Over the year to June 2023, it saw a net increase of 3,662 people through both internal and overseas migration. This region has experienced rapid housing development, with housing stock more than doubling over the past five years.
Outside of major cities like Sydney and Melbourne, migration numbers were particularly high in areas like Chambers Flat – Logan Reserve in Brisbane. Although this region experienced a modest 9.6% increase in rents, it remained in line with Greater Brisbane’s overall rent growth of 9.4%.
In Perth, Alkimos – Eglinton in the northwest recorded the highest total migration. This area, known for its coastal lifestyle and affordability, saw a significant influx of both internal and overseas migrants, leading to a rise in median dwelling values.
The migration trends observed in these housing markets offer valuable insights. For example, internal migration to Melbourne’s West mainly originates from more central regions, indicating a trend of people upsizing to detached houses in relatively affordable areas. However, rent increases in these areas have been lower than the broader market, suggesting factors such as supply and affordability play crucial roles.
Overall, the data highlights the complex relationship between migration and housing markets. While some regions experience rapid value growth and increased demand due to migration, others may see more moderate price movements, influenced by factors like supply and timing of property purchases. Ultimately, the impact of migration on housing markets varies, with the relationship between overseas migration and rents being the most consistently observed trend.
So if you’re considering property investment to capitalise on the current migration trends sweeping through Australia, it’s essential to navigate the market wisely.
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