Great Barrier Reef Northern Territory Queensland Western Australia South Australia Gold Coast New South Wales Victoria Australian Capital Territory Tasmania
Australia is the biggest island in the world; the 6th largest nation; and the only country to occupy an entire continent. With its stable political system; safe, carefree, multi-cultural lifestyle; wide open spaces; pristine beaches, waterways, and forests; unique outback interior; 14 World Heritage listed sites, abundance of natural resources; low unemployment / low interest rate / high standard of living environment; and one of the most buoyant economic growth rates in the world - it is has long been considered a positive and safe investment haven by the international property investment community. The Australian Property Market The property market has reflected these attributes with continuing demand for new dwellings while stock levels and new construction in some cities being deficient to underlying demand. This demand has resulted in strong, consistent capital growth performance over many years, with median house prices compounding at an average growth rate of some 8.5% per annum since 1987 in our major capital cities, or an increase of more than 330% over that time.
% Median House Price Growth V CPI 450 400 350 300 250 200 150 100 Sydney Melbourne Brisbane Canberra Perth Darwin CPI 50 0 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 Chart plots price growth compared to CPI (inflation rate) Population Growth Australia s estimated resident population (ERP) at June 2005 was 20.3 million, an increase of 237,100 people compared with June 2004. This represents an annual growth rate of 1.2%, the same as the average annual growth rate for the five years to June 2005. All states and territories experienced population growth in 2004-05, with the largest increases occurring in Queensland (up 75,900 people), Victoria (up 59,400 people) and New South Wales (up 53,500 people). Victoria s population passed the 5 million mark during 2004-05, Western Australiaʹs passed 2 million and the Northern Territoryʹs passed 200,000 people. Queensland, Western Australia and the Northern Territory recorded annual growth rates greater than Australia overall in 2004-05. Queensland s population increased by 2.0% while Western Australia s increased by 1.6% and the Northern Territory s by 1.5%.
Victoria s growth rate for 2004-05 of 1.2% was the same as Australia overall. The remaining states and territories recorded lower annual growth rates than Australia, with the population of New South Wales increasing by 0.8%, South Australia and Tasmania each increasing by 0.6%, and the Australian Capital Territory by 0.3%. In each state and territory, the areas with the largest or fastest population growth tended to be outer suburbs, inner cities and certain regional centres, especially along the coast. Capital City Population Growth At June 2005 capital city Statistical Divisions (SDs) were home to 12.9 million people, around two-thirds (64%) of Australia s population. The combined population of capital city SDs increased by 138,000 people in 2004-05, accounting for 58% of Australia s growth for the year. Brisbane SD was the fastest growing capital city in Australia in 2004-05, increasing by 1.9%, followed by Darwin SD (up 1.7%) and Perth SD (up 1.6%). Melbourne SD recorded the largest growth of capital cities in 2004-05, increasing by 41,300 people, followed by Brisbane SD (up 33,300 people) and Sydney SD (up 29,800 people). Population growth in the Melbourne SD in 2004-05 equated to an average increase of 790 people per week. Other large capital cities such as Brisbane increased at an average of 640 per week, Sydney 570 per week and Perth 450 per week.
One of the world s most buoyant economies Australia s Australia s Resilience Resilience World s World s Best Best Australia s Resilience Ranks Number One Fourth Year In A Row Australia Denmark Iceland India USA Norw ay Chile Malaysia Ireland Canada Thailand Taiw an Hong Kong UK 6.09 6.07 6.84 6.76 6.74 6.67 6.63 6.62 6.53 6.45 6.41 6.31 6.24 7.64 6 6.2 6.4 6.6 6.8 7 7.2 7.4 7.6 7.8 8 Scale: 10 = Strong, 0=Weak Data Source: source: World World Competitiveness Yearbook Yearbook 2005 2005
Strong, consistent economic growth Solid Growth in 2005 Economy Grew Solidly in 2005 1,000.0 900.0 800.0 700.0 Economic Growth in Australia GDP, vol. original Annual change % 12.0 10.0 8.0 600.0 500.0 400.0 300.0 200.0 100.0-1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 A$ billion 6.0 4.0 2.0 0.0 Per cent -2.0 Source: ABS, National Accounts, Dec Source: ABS, National Accounts, Catalogue 5206.0, December quarter 2005
Strength in diversity.. A Diverse Economy A Diverse Economy Sectoral Share of Major Industries Share of Major Sectors in Industry Vlaue Added, 2005 Health and community services 7% Education 5% Cultural and recreational services 2% Property and business services(c) 15% Finance and insurance 8% Communication services 3% Personal and other s ervic es 7% Transport and storage 5% A griculture, forestry and fishing 4% Mining 5% Manufacturing 13% Electricity, gas and w ater supply 3% Construction 8% Wholesale trade 6% Re ta il tr ad e Accommodation, 7% cafes and restaurants 2% Source: A BS, National A ccounts, December quarter 2005 Data source: ABS, National Accounts, Catalogue 5206.0, Dec quarter 2005
Remarkable Economic Performance Australia has been the most resilient economy in the world for four years in a row. Australia is an increasingly prosperous nation with 15 years of continued economic expansion and strong productivity improvements. Responsible economic management has delivered a strong economy and strong budget outcomes. The government has reduced its debt to among the lowest levels in the OECD. Investment has surged, employment has grown strongly and inflation has remained moderate. The OECD describes Australia as one of its best performers. The Australian economy is expected to grow solidly in 2005-06 and 2006-07. Australian economic growth is forecast to be 2.5 per cent in 2005-06 and 3.25 per cent in 2006-07. Business investment is expected to grow by 14 per cent in 2005-06 and 8 per cent in 2006-07. The unemployment rate is expected to remain steady and inflation is expected to be within 2 to 3 per cent. Source: The Commonwealth Treasury, Budget 2006-07, May 2006
Median House Price Growth 1987-2005 Year Sydney Melbourne Brisbane Canberra Perth Darwin CPI* 18 Years 1987 $ 119,900 $ 91,000 $ 62,100 $ 90,300 $ 61,200 $ 81,100 80.4 2005 $ 524,300 $ 359,500 $ 313,800 $ 359,100 $ 303,800 $ 295,700 150.6 Compound Growth p.a. 8.5% 7.9% 9.4% 8.0% 9.3% 7.5% 3.6% Source: The Real Estate Institute of Australia & The Australian Bureau of Statistics House prices are moving annual median for December quarter *Inflation Rate - Weighted Average Index Australia. As safe as houses!