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!

By |2019-05-20T15:23:48+10:00May 10th, 2019|

About the Author:

David Johnston
David is the Founder and Managing Director of Property Planning Australia, author of ‘How to Succeed with Property to Create your Ideal Lifestyle’, co-author of ‘Property for Life – Using Property to Plan Your Financial Future’ and a widely-published media commentator. With more than 20 years of experience, David is passionate about educating others to make informed, and ultimately, more lucrative property investment decisions. David established Property Planning Australia in 2004 – with the vision to educate and empower Australians to make successful property, mortgage strategy and money management decisions.  Property Planning Australia’s operations have earned acclaim and national industry awards for its unique fusion of property planning, education, money management, mortgage strategy and risk management. All supported by multi award winning customer service.