is it a bubble??, page-5

"What do you think about the answers to the 16 questions ?"

well i think they skimmed a bit over this question...

What is driving demand?

The demand fundamentals are strong courtesy of rapid population growth. A lift in the birth rate and net migration inflow means that population growth is at the high end of the range of the past 40 years.
The skew in the intake towards skilled migrants is accentuating the impact on the housing market. Skilled migrants are typically cashed up when they arrive and quickly add to housing demand.
There are also temporary skilled migrants (457 visas). And a strong education-related inflow as well. These groups are not necessarily permanent settlers. But they do need to live somewhere while they are here.


600k+ kiwis

http://monash.edu/mapping-population/statistical-trends/statistical-data/table-b7.pdf

500k+students

http://monash.edu/mapping-population/statistical-trends/statistical-data/table-c4.pdf

160k 457 Visa, 136k+ 417 Visa

http://monash.edu/mapping-population/statistical-trends/statistical-data/table-c1.pdf

thats 2012 numbers...

that adds up to 1.4 million renters in major cities.

If that did a sharp reversal, city rental yields would most likely drop sharply

The housing boom/mythical shortage in Australia is essentially a major (inner) city rent boom, everything in a away depends on it