INTELLIGENT INVESTMENT Population Growth & Its Impact on Australian Property

How an additional 340,000 migrants will transform these Australian property sectors.

Australia is on the brink of a population boom, with projections indicating the population will reach 31.3 million by 2034. By June 2025 alone, an additional 340,000 people are expected to call Australia home. This surge in population is poised to reshape the property landscape, presenting both challenges and opportunities for investors, occupiers, and developers.

Residential Sector

The residential sector is set to face significant pressure due to the ongoing housing crisis, which will be further exacerbated by population growth. Despite the public sector’s ambitious target of delivering 240,000 homes per annum through to 2029, supply pipelines remain constrained. This persistent imbalance between supply and demand is likely to drive the evolution of living sector alternatives. Build-to-rent (BTR) developments, single-family rentals, purpose-built student accommodation (PBSA), retirement communities, and land lease communities are expected to gain traction as viable solutions to meet the growing housing needs.

Retail Sector

The retail landscape in Australia will undergo a dramatic transformation as the population increases. Investors, occupiers, and developers must adapt to the changing demands and capitalise on emerging opportunities. The influx of new residents will drive demand for diverse retail offerings, from everyday necessities to luxury goods. Retail spaces will need to evolve to cater to the preferences of a larger and more diverse consumer base, potentially leading to the development of mixed-use spaces that combine retail, residential, and recreational facilities.

OFFICE SECTOR

Population growth will also have a profound impact on the office sector. As the workforce expands, the demand for office spaces will rise. Targeting markets with lower vacancy rates, such as Brisbane, can provide optimistic pathways for investment. Additionally, the shift towards hybrid work models will necessitate flexible office solutions that can accommodate varying needs. Developers and investors will need to focus on creating adaptable workspaces that foster collaboration and innovation while meeting the demands of a growing workforce.

Australia’s population growth presents a unique opportunity for the property sector. By identifying and leveraging growth potential in residential, retail, and office sectors, stakeholders can navigate challenges and capitalise on emerging opportunities. The key to success lies in adaptability and innovation, ensuring that the property market evolves to meet the needs of a burgeoning population. As Australia continues to grow, the property sector must remain agile and forwardthinking to thrive in this dynamic environment.

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