Here are some key employment statistics:
- Our capital cities now attract 81% of Australia’s job creation growth. This was about 60% ten years ago.
- The forecast is for more jobs to be created in our capitals in coming years. There are sound reasons why.
- In addition, one in seven jobs are now located in a capital city, compared to two-thirds just five years ago.
- Some capitals are adding more work than others.
- New job growth is particularly strong in Melbourne, Sydney and now Brisbane.
Job creation is increasingly important for future property performance.
Sometimes it comes down to one thing.
Those areas with limited employment opportunities are likely to struggle with regard to future capital growth and rental returns.
The opposite trends take place in locations with an increasing, and more importantly, upwardly mobile workforce.
Important in this regard is the level of education and local skill set.
This, in turn, impacts on the type of jobs in an area and the potential prospect of more higher paying jobs in the future.
More higher skilled jobs typically equate to rising local household income.
Rising local household incomes translate to sustainable increases in property values and weekly rent.
This is not to say that areas with limited job or wage growth do not present investment opportunities.
They do, but the room for potential buying error in these areas, we believe, is higher.