Property Planner’s Fast Fact – The paradox of population growth!

Population growth is a positive indicator for property value growth, right? Everyone knows this, don’t they!

Well, what if I told you that population growth can be a positive and also a negative, depending on what exact location type you are measuring?

Here’s why…

Population growth in a capital city or a regional city is a plus. An increase in net migration is an indication of that city’s desirability for livability.

Population growth on the suburb level, on the other hand, indicates that there has been a high supply of new properties, land or both. Oversupply is rarely a good thing for the increased value of any commodity. Economics 101!

So, there you have it! The paradox of how population growth on a macro level can be positive, whilst on a micro level within the macro location can be harmful to value growth!

Until next time, happy Property Planning and remember, not all data is what it seems!

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