Australia: The Lucky Country
Structural strengths of the Australian economy
- The Australian property market has significant potential for medium- and long-term capital appreciation, with strong yields.
- Australian markets did not suffer as greatly as many other advanced economies during the global crisis due to low levels of government debt, budget surpluses, low unemployment and strong demand for its mineral resources and agricultural production.
- Increased demand for its resources and agricultural products is expected to improve Australia’s economic success and fuel its real estate market.
Demand driven by population growth*
- Australia has a forecast population of 35.5 million by 2056, up from the current 22 million – a 61% increase during the next 46 years.
- Population growth exceeded 2% in the year 2010
- GDP growth forecast for 2010 to 2015 is projected at an avg. of 3.1%, with 3.4% for 2010 to 2011.
- Population growth and excess demand relative to supply has been a key driver of Australian house price appreciation. These factors are likely to continue in the near term.