Australia Prepares for Post-Pandemic Population Boom

Australia’s international borders were snapped shut with the arrival of Covid-19 in March 2020, and more than a year later the island nation is still closed to new arrivals. As a result, the country, which relies heavily on overseas migration to boost its economy and

BY Realty Plus
Published - Monday, 31 May, 2021

Australia Prepares for Post-Pandemic Population Boom

Australia’s international borders were snapped shut with the arrival of Covid-19 in March 2020, and more than a year later the island nation is still closed to new arrivals. As a result, the country, which relies heavily on overseas migration to boost its economy and housing market, has experienced its first negative population growth in more than a century. One year into the pandemic, Australia’s migrant stock was 300,000 people fewer than it would have been, coupled by a net migration decline of 97,000 people, according to Federal budget estimates. By 2030, the Australian government estimates the country will be “missing” 1 million new people. As of June 2020, the Australian Bureau of Statistics recorded that there were more than 7.6 million migrants living in Australia, with 29.8% of the total population born in another country. England was the largest group of overseas-born migrants at 980,400, followed by those born in India at 721,000 and then Chinese migrants third at 650,600. The hit to Australia’s population growth rate is already taking its toll on some parts of the property market, particularly inner city apartments. However, when borders do reopen, property and population experts predict that Australia’s successful and vigilant handling of the pandemic—Victoria instated Thursday a weeklong statewide lockdown in response to a cluster of only two-dozen or so cases—and its rebounding economy will attract the attention of cashed-up migrants and foreigners seeking out shrewd investments. In the Federal Budget announced earlier this month, the government hinted at a “gradual return” to temporary or permanent migration, but no sooner than mid-2022. As a result, Australia’s population is predicted to be about 25.88 million by the end of next year. As a result, inner city vacancy rates soared and rents dropped, particularly in Sydney and Melbourne where most new arrivals initially land. A return of both temporary and permanent migrants would create an immediate demand throughout metropolitan rental markets and provide opportunities for investors coming back into the market.