Key Sectors to Gain from Australia's Population Surge
Key Sectors to Gain from Australia's Population Surge
0
Australia's growing population is poised to significantly benefit the housing, healthcare, and financial services sectors, according to insights from Datt Capital.
The country experienced a net population increase of 667,000 in 2024, primarily driven by overseas migration, far exceeding the projected annual figure of 200,000.
This trend situates Australia at the forefront of a "demand-led growth phase," with future population forecasts ranging between 36 million and 45 million by 2056, as highlighted by Emanuel Datt, Chief Investment Officer at Datt Capital.
Housing, healthcare, and financial services are expected to thrive amid burgeoning demographics. Addressing the housing sector's current shortfall, the Australian Bureau of Statistics (ABS) revealed an 11.7% increase in dwelling commencements as of March. However, these figures still fall short of the government's target of constructing 1.2 million dwellings within five years, leading to historically low vacancy rates in major cities. Similarly, the healthcare industry faces rising patient loads and aged care demands, while the financial sector experiences heightened activity in mortgage origination.
Australia's approach contrasts with that of Canada, another nation welcoming high immigration, yet currently struggling with demographic and housing issues. In contrast, Datt Capital notes Australia is better leveraging immigration advantages to maintain consumer confidence and labour market stability. Furthermore, the healthcare sector is set for continued growth, with a projected compound annual growth rate (CAGR) of 4.5% from 2021 to 2028, driven by an aging population, increased demand for services, and advancements in digital infrastructure.
Looking forward, the Datt Capital Small Companies Fund is strategically positioned within these sectors. Emanuel Datt emphasises that while passive investment strategies may overlook these opportunities, there is substantial potential for earnings growth and pricing power among companies in residential development, diagnostics, mortgage servicing, and digital financial infrastructure. Investors targeting these underserved parts of the economy could see transformative returns.
The US economy is teetering on the edge of a hard landing, with ongoing tariff disruptions continuing to shake the market, as noted in American Century Investments' latest forecast. Despite some optimism, the challenges persist, keeping hopes for a softer economic transition at bay. - read more
The median price for a house in Sydney soared to $1,722,443 by the end of June, marking a 2.6% quarterly increase and a 4.2% rise year-on-year, according to Domain’s Q2 house price report. This marks the city's fastest quarterly growth in two years and the third consecutive rise. Alongside, unit prices hit a record $834,791, increasing by 1.5% over the same period. - read more
The Australian Securities and Investments Commission (ASIC) has initiated an investigation into the debt management and credit repair industry, expressing concerns that certain firms may be exacerbating the financial struggles of vulnerable consumers. The inquiry will focus on instances where firms are alleged to have overcharged for minimal services, failed in their contractual communication, or breached the terms of their agreements altogether. - read more
Applying for an online loan can be a convenient way to manage your finances from the comfort of your own home. With technology's advancement, borrowing money has shifted from traditional brick-and-mortar institutions to digital platforms, making the process quicker and more accessible. However, navigating through this online landscape requires an understanding of how it operates. - read more
Loan refinancing involves replacing an existing loan with a new one, usually to achieve better terms. It allows borrowers to access new loan agreements that could potentially offer lower interest rates, better repayment conditions, or additional financial benefits. - read more
In recent times, Australians have witnessed a notable uptick in the use of online personal loans. The trend emerges as part of a broader digital transformation, where convenience and speed take precedence. This shift has facilitated access to financial services with just a few clicks, making personal loans available to anyone with an internet connection. - read more
