By Leroy MaGee
Western Sydney seems to be the natural choice of residence for migrants from the subcontinent
Invariably, property will end up being the discussion point at many a social occasion and the subcontinent’s passion for property is legendary. In the last decade, the migrant population from the sub-continent has grown exponentially, and the bulk of these migrants are moving into the Western Sydney region, resulting in spiralling prices in the entire area. Indian-born migrants were the third largest community group in Sydney (87,000 people in 2011 or 2.4% of Sydney’s total population). Naturally, that number has increased since.
The suburbs where Indian-born migrants are most densely concentrated tend to be situated in the wider Parramatta area including Harris Park (43%), Westmead (32%), and Parramatta (24%). Nearby suburbs of Wentworthville (19%), Girraween (17%), and Rosehill (16%) also had large proportions of their population born in India.
In the last decade, the proportion of the population of Harris Park born in India more than tripled from 14% to 43% (an increase from 500 to 2,000 Indian-born people between 2001 and 2011). In Westmead, the increase was even greater, from 7% in 2001 to 32% in 2011 (from 700 to 4,200 Indian-born people). This reflects the wider increase seen in the Indian-born population across Sydney (and Australia) during this period, with the proportion born in India growing from 1.0% to 2.4% of Sydney’s population between 2001 and 2011.
(Source: ABS: http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/4102.0main+features102014#SYDNEY)
Vacancy rates are pegged to increase and rental yields to reduce in Sydney. An unhealthy high ratio of investor-owned properties is already occurring with ABS data confirming that 60% of NSW home loan approvals were from investors (30% is ‘normal’).
With a population of 2.06 million people (8.9% of Australia), Western Sydney on its own is bigger than the combined populations of South Australia, Tasmania, ACT, and the Northern Territory.
In my opinion, there is still a bit of upward movement that can occur, given that the Reserve Bank is pegged to drop interest rates further. The dilemma facing the Reserve Bank right now is trying to put the brakes on the real estate boom in Sydney without affecting other sectors of the economy and the country at large.
What goes up,must come down! The question is when?