Is Immigration The Key To Growth?
An influx of people could calm future volatility.
An influx of people could calm future volatility.
Australia has been blessed over its economic history, weaving and dodging through major financial crises relatively unscathed. It entered the COVID-19 pandemic, which has caused the most severe global economic shock since the Great Depression, from a position of extreme strength — the budget was in balance for the first time in 11 years, workforce participation at a record high and welfare dependency at its lowest in a generation.
Australia was bathing in the glory of the most prolonged uninterrupted GDP growth worldwide in 30 years. Australians also have emerged post-COVID as the wealthiest people per capita globally. Australia’s economy is the most robust according to OECD as per below.
Has our luck run out?
In every significant economic challenge presented to Australia over the past 30 years, there has been unexpected good fortune that allowed Australia to adapt and find new opportunities.
That was not always the case, as in the 90’s recession we experienced a period of stagflation, reflected by high inflation of 5.5%, negative GDP growth, official interest rates of 12%, and unemployment of 12%, with the manufacturing industry being decimated.
At that time, Australia ranked extremely low within the OECD nations regarding income per capita. At the time, Singaporean Prime Minister Lee Kuan Yew berated Australia, warning Australians were on track to become “the poor white trash of Asia.”
Despite the dire circumstances, Australia has used this era to introduce successful economic reforms that have served well for many decades.
Our economy adapted and prospered to new opportunities such as mining, tourism, and education. Fast forward to 2007-2008, whilst the world was haemorrhaging during the GFC, our stringent banking regulatory framework led to our four leading banks being amongst the top ten in the world at the time, cushioning the crisis and emerging even more robust post-GFC.
The emerging economic impacts of COVID have some similar traits to those of the ’90s.
Once the inflation genie escaped from the bottle, we now see the latest inflation figure of 2.1% year on end at their highest. Importantly, this has been the case over the past six years and indeed inflationary economic indicators are not abating. Vigorous debate is brewing among economists and academics whether inflation is truly transitionary due to lockdowns. Other words such as stagflation, hyperinflation, sporadic, core inflation, deflation, and asset inflation have been added recently to our vernacular.
The genuine concern is that despite the RBA governor’s assertions that interest rates will remain unchanged until 2023, it is unlikely that he will want to play chicken with the threat of inflation and so be unwilling to increase interest rates. By raising interest rates, nearly all assets will reverse their stellar fortunes, and deflate accordingly. The increased risk of an uncertain economic recovery and recessionary risks will continue to plague consumer confidence as a result.
It is a report commissioned by the government to explore the economic drivers for the next 40 years.
The report outlines the three pillars of Australian economic growth for the next 40 years.
Population: Increase by net migration, considers impacts of net deaths and births.
Participation: The workforce is defined by demographics and willingness to work, unemployment rate, or summed up as the total work hours of the output of the entire workforce.
Productivity: Is the average output per unit of input. Productivity can be enhanced using technology and capital investment in creating efficiencies in the workplace.
The single item that governments can immediately impact is the level of migration that drives population growth. As markets are efficient and competitive, immediate advantages and adaptation of new technologies are therefore temporary. However, in conjunction with the balanced migration policy, these can further improve both participation and productivity, delivering positive economic outcomes.
The International Monetary Fund (IMF) has found that 1% growth to the subsequent migration adds approximately 2% to the national GDP. It also impacts productivity per worker as it complements the existing population and negates an aging population.
Migration traditionally occurs early in one’s working life, eliminating the incumbent government’s education, infrastructure, and health costs.
In the USA migrants currently constitute 15% of the total population and make a significant financial contribution. 30% of all businesses, 40% of all fortune 500 companies, and 50% of unicorns (start-ups worth more than 1b) are founded by migrants. In the US, migrants are the most significant contributors to innovation and entrepreneurship, leading the US to the largest economy in the world.
Despite negative and false myths claimed by opponents of migration, migrants do not take locals’ jobs and burden society, as confirmed by endless and ongoing economic research.
Australia is considered one of the most prosperous nations globally, embracing migration from both a social integration of multiculturism and financial perspective. One-third of the entire population consists of migrants, the highest percentage of any country in the OECD. Australia’s population has doubled since the ’70s, and the economy has grown 22-fold as a result.
It comes as no surprise that Dominic Perrottet, former NSW treasurer and current Premier, is calling for net migration to increase from 160,000 (pre-COVID) to 400,000 persons yearly intake. This is to make up for a lost time during border closures as confirmed by the intergenerational report. A favourable migration policy will give the Australian economy an additional stimulus.
Additional immigration will also provide a cushion for the many other risks that our economy displays, such as inflation, boosting GDP, and especially alleviating labour constraints in hospitality, health, financial services, retail, agriculture, construction, property, and tech. Immigration enables the construction industry, making up 8.8% of our GDP, to continue and provides an essential multiplier effect on our broader economy. Construction in Australia has a multiplier effect of close to three: for every $1 million invested, an additional $3 million is generated in the economy as a whole.
Migration, in turn, increases productivity, creates further opportunities for innovation, and generates jobs.
The balance is altering migration to accommodate the current and future needs of the economy. Student visa programs require urgent attention, expansions to different regions, loosening up the financial dependency restrictions, scrapping the max 20 hours a week that students are allowed to work under the visa. Let’s not forget education was the 3rd highest contributor to the nation’s GDP before COVID hit; this should aid our ailing University sector and bolster our unskilled labour supply.
Historically Australia was the 2nd highest net migration nation, followed by Canada. Canada recently announced they wish to increase their net migration an additional 1% ($1m p.a.) to 2.8% of their population with an immigration blitz. Who is keen to capitalise on Scott Morrison’s proclamation (Global Talent Initiative) of attracting the smartest and brightest in the world?
We believe there will be an increase in volatility in the coming months, given the uncertainty with inflation, economic growth, and threat to asset prices, not to mention that the Australian economy needs to shift away from its dependency on China and mining.
Australia was Built on the Sheeps Back with wool being our main export from 1871 to the 1960s, Immigration allowed us to innovate and grow by maturing as a nation and building a diversified and innovative portfolio of industry’s in which we excel.
Perhaps our history has shown that insufficient credit is given to immigration policy and its positive economic outcomes being one of the key critical elements allowing the nation to emerge from dire economic circumstances as demonstrated from the 70’s crises to today’s phenomenal economic success.
When it comes to the right migration policy, it needs to be creating diversity and combination, not just accommodating skilled labour, but also refugees, students and other temporary/permanent visa holders.
Paul Miron has more than 20 years experience in banking and commercial finance. After rising to senior positions for various Big Four banks, he started his own financial services business in 2004.
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Melbourne’s lifestyle appeal is driving record population growth — and rising rents. Here are the six most expensive suburbs to rent a house in right now.
Melbourne is considered Australia’s most liveable city. In fact, Melbourne competes on the global stage, consistently ranking among Time Out’s top cities to live in the world and ranking fourth in 2025. Melbourne is a cultural mecca filled with arts, x, and the country’s best sporting events.
It’s the lifestyle factor that has seen Melbourne’s population grow by over 142,000 people over the 23/24 financial year, largely driven by overseas migration. With increased population comes increased demand for properties, particularly in the rental market.
Akin to Sydney’s Eastern Suburbs, Melbourne’s South Eastern suburbs, towards Bayside and the water, dominate the most expensive suburbs listed to rent across the Victorian capital.
In this article, we’ve examined the six most expensive suburbs to rent a house in Melbourne right now, according to property data analytics firm Cotality (formerly CoreLogic).
Median purchase: $3.15m
Median rent: $1,353
Brighton is Melbourne’s most expensive suburb to rent a house, and it’s easy to see why. A blend of grand period homes and modern architectural builds line the wide, tree-filled streets. The suburb is synonymous with luxury, and rental properties—especially those close to the famed Brighton Beach and its iconic bathing boxes—are snapped up quickly. Vacancy rates sit at a tight 0.9 per cent.
The Neighbourhood
Brighton offers an enviable mix of a beachside lifestyle and convenient shopping and dining. With access to top schools like Brighton Grammar and Firbank, plus Church Street’s boutiques and the Royal Brighton Yacht Club, the Bayside suburb is the complete package for Melbourne’s high-end renters.
Median purchase: $2.8m
Median rent: $1,313
Long known for its timeless Victorian and Edwardian homes, Malvern is a leafy inner suburb with prestige appeal. Many properties here are fully renovated period homes, featuring extensive gardens and original features that appeal to families and executives.
The Neighbourhood
Malvern boasts a refined atmosphere with a strong community feel. Glenferrie Road and High Street offer upscale cafes, boutiques, and grocers, while schools like De La Salle and St Joseph’s make the suburb particularly attractive to families.
Median purchase: $2.29m
Median rent: $1,253
Nestled along the Bayside coast, Black Rock has seen steady growth in both house prices and rents in recent years. Larger blocks and a quieter, more laid-back vibe than neighbouring suburbs make this a coveted spot for renters seeking both space and lifestyle.
The Neighbourhood
Black Rock is home to the picturesque Half Moon Bay and scenic cliffside walks. The suburb blends beachside charm with village convenience, offering local cafés, golf courses, and direct access to some of Melbourne’s best coastal trails.
Median purchase: $2.21m
Median rent: $1,199
Sandringham, next door to Black Rock, offers more of the same as its neighbouring suburb, at similar prices. Sandringham too ticks the box for laid-back waterside recreation, with the majority of homes in walking distance to the sand and charming village shops.
The Neighbourhood
This is a family-friendly suburb with a strong community vibe. Sandringham Village, with its mix of cafes, wine bars, and boutiques, sits just a short walk from the train station and beach. The area also offers excellent sporting facilities and parks. Sandringham Harbour is the local landmark, a popular destination for boating, fishing, and waterfront views from Sandringham Yacht Club.
Median purchase: $3.15m
Median rent: $1,179
Canterbury is the innermost Melbourne suburb on this list. It is considered one of Melbourne’s most prestigious suburbs, defined by grand family homes, generally over-the-top opulent new builds with French Provincial façades behind gated entries.
The Neighbourhood
Canterbury is anchored by the exclusive “Golden Mile” precinct and is surrounded by elite private schools such as Camberwell Grammar and Strathcona. Maling Road provides a quaint village feel, while the area’s lush green spaces complete the picture of prestige.
Median purchase: $2.3m
Median rent: $1,171
It’s back to Bayside for the sixth and final suburb on the priciest rental areas in Melbourne. Hampton is not too dissimilar to Brighton, with a main High Street providing convenience and the beach rounding out the relaxed lifestyle found on the bay. The suburb has undergone significant gentrification, with many original homes replaced by contemporary builds.
The Neighbourhood
With a stretch of clean, family-friendly beach and the bustling Hampton Street shopping strip, Hampton has everything renters could want—from stylish cafes to gourmet grocers and boutique fitness studios. Its proximity to Brighton and Sandringham only adds to its appeal.
Median purchase: $460,000
Median rent: $430
On the opposite end of the spectrum, Melton South—roughly 40km west of the CBD—offers the most affordable rental market. With a median rent of under $450 a week, it’s less than a third of the weekly rent in Brighton. The suburb attracts families and first-home renters seeking value and larger land lots.
Toorak is considered the Point Piper of Melbourne. Boasting even more billionaires than Sydney’s harbourside hotspot, Toorak is home to Melbourne’s most expensive houses, and reportedly Australia’s most expensive house sale if the 1860s Italianate mansion Coonac settles at over $130 million.
The suburb has some of the best educational institutions in Melbourne, as well as luxury homes on the Yarra, two train stations, and a central shopping precinct undergoing a full transformation with several mixed-use retail and residential developments. It is definitely the place to be.
As of May 2025, Brighton is Melbourne’s most expensive suburb to rent a house.
As of May 2025, Melton South is Melbourne’s most expensive suburb to rent a house.
As of May 2025, Toorak is Melbourne’s most expensive suburb to buy a house.
As of May 2025, Beaumaris is Melbourne’s most expensive suburb to buy a unit
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