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Is population growth always an indicator of higher property prices?

High growth population areas are seen as predictors of rising real estate prices but API Magazine's newest contributor argues that property investors might be barking up the wrong, overcrowded tree.

Crowded Bondi Beach
Following the crowd is not necessarily the best approach to property investment when it comes to population growth. (Image source: Shutterstock.com)

There’s a widespread narrative in property circles that assumes population growth is a good thing, and that more population growth is a better thing.

High growth population areas are seen as predictors of sure-fire real estate capital growth. But what if ‘it ain’t necessarily so’? What if some low-growth regions can see prices rise faster than the market average?

Population growth is a key driver of demand but all population growth is not equal…

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