Sushi’s Impact on the Australian Property Market

Graeme Salt Broker 2 1 Comment

My kids love sushi.

Nori rolls, babycino, gado gado are all part of their culinary lexicon – just as much as white bread and vegemite.

Without knowing it, my kids demonstrate why the future for the Australian property market is strong – even if there is not that much growth left in the East Coast.

Asian born Australians are the biggest growing demographic in Australia today and represent more than 10 per cent of the overall population – more than doubling in 20 years and showing no signs of slowing.

With a net migration rate of almost 200,000 a year, Australia and our cities continue to grow.  This is particularly true in Melbourne with Victoria growing at a rate of 2.07 per cent.

And, because migrants tend to be younger, they tend to be more fertile – producing more Australians who, in a few years, will be looking for their own property – which is why the Chens and Singhs that my kids play with at school (as well as the Papanicolas and Buongiornos) will be holding up the property market for years to come.

They are also determining which locations have the strongest price growth.  The outer suburban locations are less in demand by Asian immigrants; instead many prefer the medium density location within a few kilometres of the CBD.

Growth is more likely to be in locations near a train station, with shops and cafes nearby; rather than where you hear the gentle hum of a Victa mower on Sunday.

The East Coast property market has had a good run.  While its hard to see that much more growth, Australia’s strong Asian ties mean that property will keep doing well.

 

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