Australia population likely to increase by three million people by 2030

Australia's population is likely to increase by more than 10 per cent by 2030, with the country to gain another three million residents, a leading property buyers agency is forecasting.

A rebound in migration to Australia following the COVID-19 pandemic is set to boost the population growth, BuyersBuyers co-founder Peter Wargent has said, with Australia having a genuine skills shortage for the first time in a decade.

He has pointed to forecasting predicted by Treasury in the federal budget papers in signaling the rapid growth.

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"With the permanent migration cap lifted from 195,000 per annum, the budget papers assume net overseas migration of 235,000 per annum going forward," Wargent said.

"The government is dedicating funding and energy towards accelerating visa processing times to clear the backlog and bring the labour supply back into balance."

He has said that these migration forecasts combined with natural population growth, which leads to the population growing by about half a per cent each year, would equate to the population rising by 365,000 per annum.

"Which would equate to an extra 2.9 million persons by the end of 2030."

Australia's population was recorded as at 25,890,773 people at March 31, according to the Australian Bureau of Statistics.

But Wargent has said the population could grow even more quickly, with "history suggesting that we tend to underestimate population growth in Australia".

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He has said the rebound in population growth should in time bring some much-needed respite for restraints on purchasing property.

"On a net basis we can expect one million arrivals over the next four years, and overwhelmingly they will add to the tenant pool, at least initially," Wargent said.

"At some point, it must become easier for landlords to borrow to supply the new rental stock that's needed.

"Lending assessment buffers are too stringent at the moment at 300 basis points, so it's no surprise that rental vacancy rates are at all-time lows and tightening".