While some may believe in population growth as the main means of influencing property prices, one expert believes that jobs should have a higher priority when looking to invest into a new area.
According to Propertyology’s managing director Simon Pressley, population growth is far from being the biggest influence on property prices.
“There are a range of factors that influence the demand side of the property price equation. Aside from affordability, the biggest influence is economic conditions, which is jobs and more jobs,” Mr Pressley said.
“Tracking trends of job volumes is a more reliable measurement of the direction that a localised economy is heading than looking at an isolated unemployment rate."
Looking at Australia’s capital cities, Propertyology’s research revealed Melbourne had the largest growth in jobs over the last two years at 10 per cent, followed closely by Hobart at 9.8 per cent and then Canberra at 8.7 per cent.
“Sustained jobs growth within a community puts more money in people’s pockets, attracts new people to a region, and boosts local confidence,” Mr Pressley said.
“It increases the chances of renters becoming homeowners, provides homeowners with confidence to renovate, increases demand for local goods and services, and gets more people at open homes.”
Meanwhile, jobs in Brisbane only saw a rise of 1.9 per cent, which Mr Pressley attributed to the continuing post-mining boom pinch.
The top performing regional area for growth over the last two years was North-West Victoria, experiencing 28.5 per cent growth, followed by Queensland’s Mackay area at 17.5 per cent growth, with Victoria’s Warrnambool area close behind at 17.4 per cent.
On the other end of the scale, the regional area experiencing the largest job loss was Queensland’s Fitzroy area at a loss of 8.9 per cent.
Multiple regional areas have high growth prospects with increased jobs growth particularly in regional tourism, agriculturue, food-related advanced manufacturing, infrastructure projects and some rebounds in mining.
“The continuous extra demand from international and domestic tourists is creating new jobs in great cities like Cairns, Dubbo, Orange and Armidale, Bendigo and Ballarat, and regional Tasmania,” Mr Pressley said.