The latest demographic forecast now suggests that South Australia’s population will reach 2 million people by 2027.

Professor Hugo, Federation Fellow Professor of Geography of The University of Adelaide and Director of the National Centre for Social Applications of GIS, told investors at a Raine & Horne Property Investor Information seminar; South Australia’s housing will be under severe pressure as our population approaches 2 million with increased mining and defence job growth.

Professor Hugo stressed that our household growth will continue to outpace population growth because of our demographic trend towards lower numbers of persons living per households – single parent families, empty nesters, single, professional couples, etc. He predicted that if South Australia’s population target of 2 million people is to be achieved – South Australia will require 300,000 new dwellings, of which 240,000 new dwellings will be required in Adelaide.

Indeed with the urbanization of China and India being the single biggest driver in the world economy today, South Australia’s mines will play a major part in providing resources for those growing economies. According to the latest Australian Bureau of Statistics ABS figures, 55% of Australia’s mining exploration activity is occurring in SA. Indeed SA is entering a multi-billion dollar mining boom and is now rated No 4 out of 68 international mining jurisdictions in the world.

Notable new mining expansions are situated at Prominent Hill, Challenger Mine and Roxby Downs in the far north of South Australia. These mines are emerging as major mines in the world, particularly Roxby Downs which will be the largest mine development ever, with 35 percent of the world’s known uranium deposit, which with the demand from China will require 300,000 new people to be attracted into mining.

A report by McKinsey Global Institute predicts China’s urban population will grow from 572 million in 2005 to 926 million by 2025 and one billion by 2030.” By 2025, China will have 219 cities with more than one million inhabitants – compared 35 in Europe today – and 24 more cities with more than five million people. With up to 50,000 skycrapers to be built – the equivalent of 10 New York cities – and 170 mass transit systems, China is going to need a lot of iron ore, copper and other natural resources that are buried underground in South Australia.

Grand Private Equities Stockbroker Wesley Legrand agrees; “It has been our long-held view that the urbanization of China is the most important event to happen in the world economy since the industrial revolution of the 18^th and 19^th centuries” he said. “This is not a short-term cyclical event. The current urbanization of the Chinese economy, followed by India, represents the initial phase of a new economic order which will re-shape the global economy forever”.

Mr Legrand went on to say that the old fashioned adage “when the U.S. sneezes the rest of the world catches a cold” appeared to be no longer relevant. “Despite the worst housing market in the U.S. since the Great Depression of 1929 and a significant U.S. economic slowdown, Chinese economic growth fell be less than 1 per cent to 10.6 per cent in 2008 from 11.4 in 2007”. “We have maintained that Chinese urbanization is driving a permanent structural increase in energy and base metal demand, and fortunately for Australia we are very rich in both.”

What does all of this mean for Adelaide’s population and housing needs?

It means that Adelaide and it’s housing needs will be transformed over the next twenty years with significant exciting urban revitalizations in property to house Adelaide’s emerging job growth and population migration to SA.

This story was brought to you by Raine & Horne Glenelg – Your Glenelg Real Estate Agents and Glenelg Property Management Experts – We’ll look after You.

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