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Population growth and foreign investment will ensure inner-city apartments deliver solid returns over the next 50 years, according to new research.
The LJ Hooker white paper found that investors are well-placed to capitalise on Australia’s changing demographics and property preferences.
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The demand for apartments will partly be driven by population growth, with Australia’s population forecast to double to 46 million over the next 50 years, according to the report.
“This sustained growth, combined with ongoing supply issues, is expected to see higher density zoning introduced across the majority of metropolitan areas,” the report said.
“The cost of providing and running infrastructure such as public transport, roads, medical and education services will see state governments prefer to increase density and infill development in order to maximise the efficiency and usage of existing infrastructure.”
The report also highlighted the factors that have made Australia a popular international investment location, including political stability, legal transparency and price.
“Affordability has been a major talking point across the Australian housing market for some time,” it said.
“However, apartment prices in our capital cities are cheaper when compared with other global gateway cities.
“This is especially true for buyers from major Asian cities, such as Hong Kong and Singapore, where prices average around US$20,000 per square metre.
“This is also an attraction for investors from the US, UK and Europe looking for a change of lifestyle or holiday home, in a warmer environment.”
[Related: Apartment building running at double historical trend]
