For those who look on Australia as the land of sea and sun this may well be an eye-opener if you’re looking to move their full-time and take advantage of the famous lifestyle.
The layout of Australia
Aside from the likes of Melbourne, Perth and Adelaide if we are honest how many other cities and towns in Australia could you name?
This is a factor which is very evident in this particular thread which offers a very interesting insight into Australia and the various issues affecting the housing market. As we mentioned above, aside from the likes of Melbourne, Perth and Adelaide, which are by far and away the best know Australian cities, there is a distinct dearth of outstanding and well-known venues.
The Australian population
Obviously with only a relatively small number of large cities in Australia the population are very focused on a relatively small area of the country. As a consequence there has been a distinct lack of investment in housing outside of the larger cities which is starting to impact as immigration figures continue to grow on a year by year basis.
As you might expect, new visitors to Australia are obviously attracted by the prospect of employment and as the vast majority of the main business districts are in places such as Melbourne, Sydney and Perth these areas have expanded rapidly to the detriment of surrounding towns and smaller cities. As a consequence we are seeing an impact upon the Austrian housing market which could take years to resolve.
Renting in Australia
There is some discussion about the rental value of various homes across Australia and the fact that significant increases have been seen in some of the major cities in the country. In a perfect world this would prompt an increase in new home builds but unfortunately for a number of reasons this does not appear to be happening in Australia as yet. There’s some debate as to whether housebuilders are currently “working flat-out” or the Australian government is running a policy of maintaining demand by holding back new home developments on purpose.
While you would hope that your local government would look towards a policy of maintaining the supply demand equilibrium this is not always the case in the housing market. Even in places such as the UK, where the property sector is very well developed, the UK government has for many years implemented a deliberate policy which on the whole has seen demand outstrip supply by a substantial difference. There are reasons for this, not least the fact that property is one of the more prominent assets of the worldwide population and there is a need to protect the value of these assets as much as possible going forward.
How do you create new cities in Australia?
The subject of creating new cities in Australia has received some comments on the thread with many differing opinions. While the government can influence the development of a growing town and city, it is a natural attraction to the area, whether this is for mineral resources of business in general, which will ultimately dictate what happens.
Australia has for many years attracted the interest of nationalities from around the world but ultimately immigrants to the country have tended to centre round the coastal regions for the weather, business opportunities and the transport network. When we look at “creating” a new city it is more than just about building homes and encouraging businesses as there is a need to introduce a local transport network before significant numbers would be attracted to the region.
The cost of building homes
While on the surface it would be easy to assume that the only cost associated with building new homes across Australia is the construction, labour and material costs this is not the case. There is also a need to introduce utilities, services and shops to regions before demand would be sufficient to make it worthwhile. Initially these particular services can be fairly expensive to set up and maintain which is something that the Australian government is acutely aware of.
Even though there is no doubt that demand for new housing is increasing throughout Australia, with the influx of immigrant workers rising year-on-year, it may be some time before we see the natural evolution of new business arenas and significant conurbations.
The Australian economy
In line with other economies around the world, Australia is suffering from the general downturn caused by the credit crunch which emanated from America. As a consequence there has been a significant reduction in government tax income which has reduced the level of funding available for reinvestment into infrastructure and other areas of Australian life. There has also been a significant reduction in employment opportunities although it may surprise many to find that there are still significant skill shortages in many areas of Australian business.
So while there are still opportunities for skilled immigrant workers to move to Australia, using the fast track visa system, there is an underlying tightening of the labour market which is impacting on the country as a whole.
Conclusion
The subject of housebuilding policies around the world is one which is rarely discussed in the open although it is something which is key to any property market. Countries such as Australia and the UK for example have for many years consciously reined in the building of new homes to ensure that demand has always outstripped supply. However, Australia is a very different situation altogether because of the landscape and climate which has in many cases reduced the opportunities to encourage new towns and cities in some areas of the country.
However, there are a handful of very large cities such as Adelaide, Melbourne and Perth which grab the headlines, business opportunities and ultimately attract the vast majority of immigrant workers. It will be difficult for the Austrian authorities to turn people away from these areas unless they are able to encourage business arenas in different parts of the country, offer utilities and reliable transport networks, not to mention affordable homes.
For a country as large as Australia to have only a handful of significant cities will surprise many, but the climate and landscape in many areas of the country does not encourage mass movement of the population or the introduction of new business markets.
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