There is one key fundamental driving the real estate market, Australia's population growth. We are in 3rd world territory as far as population growth goes, we have just topped 1.9% growth !!! Rainfall and dams cannot keep up with it, jobs are declining and people cannot afford housing, but still the government promotes higher and higher population growth for its infrastructure and housing mates.
The Victorian state budget was released today. The estimate for gross state product growth is 1.5% and population growth at 1.7% Note forecast for population growth has been raised to 1.7% for outlook period (until 2016) compared to 1.6% for previous budget. 0.1% seems tiny, but that is a 6.25% increase. No one is pointing out that per capita Victoria is going backwards.
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