Strong population growth in Parramatta presents opportunities

106Capital cities are overflowing with residents, according to an April 3 release from the Australian Bureau of the Statistics (ABS).

This presents opportunities for existing landlords and homeowners living in Sydney, which is renowned for high property demand that’s been hampered by a lack of dwellings, particularly those deemed affordable.

Big numbers in the city

Australia’s capital cities were home to over three times as many new residents, compared to the rest of the country year-on-year to June 2013, according to the ABS.

A whopping 89 per cent of capital city growth has occurred in the four biggest cities – Sydney, Melbourne, Perth and Brisbane over the last 40 years.

The New South Wales population was 7.41 million people in June 2013, with 1.4 per cent growth between 2012 and 2013.

Sydney is a key contributor to the state’s population, with almost two-thirds of NSW residents living in the Greater Sydney region in the same period.

Growth in Greater Sydney alone represented a mammoth 78 per cent of NSW’s growth for 2012-2013.

Hot areas to watch

Strong population growth between 2012 and 2013 in Sydney was seen in Parramatta, with an increase of 12,000 people. However, investors of Inner South West and South West Sydney property may also do well to secure tenants.

Inner South West Sydney population growth soared by 8,200 people year-on-year to June 2013, while South West Sydney’s population growth grew by 7,400 individuals.

Areas from Kensington to Kingsford as well as Waterloo to Beaconsfield saw strong population growth, with these areas seeing urban renewal growth as well as increases in student accommodation.

Parklea to Kellyville Ridge had a 13 per cent per cent population growth rate, making it the area with the fastest and largest growth in the Greater Sydney area.

With certain areas seeing a high influx of residents, investors may discover new rental opportunities, while existing homeowners’ dwelling values may soar.

In the long term, regional, state and federal decision makers need to pay attention to areas seeing high growth and respond accordingly with dwelling initiatives that will lift housing supply.

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