Melbourne is the fastest growing capital city in Australia. Melbourne has topped the 140 city list for the past five years and has consistently ranked in the top three places since it began.
In March 2016, the Australian Bureau of Statistics (ABS) released its annual regional population growth figures for the previous financial year. As far as capital city regions go, the data showed that population growth in Melbourne is booming. Th population of Victoria is expected to hit 10 million people by the 2050’s, and Melbourne’s population will double by 2013, putting enormous pressure on housing.
There are a number of reasons why Melbourne’s population is growing at such an impressive rate.
- It is well-known for its high quality of life, with its renowned arts scene and world famous food and wine, as well as Australia’s best shopping and leisure opportunities. Adding to this vibrancy
- Melbourne is home to some of the world’s most prestigious cultural and sporting events – consistently being ranked as one of the world’s ‘Ultimate Sporting cities’ in the biennial Sport Business awards.
- Melbourne pulls people from all over the world. It’s desirable lifestyle, accomplished and innovative workforce and dynamic business environment all combine to make Melbourne one of the world’s most dynamic cities.
Melbourne is often regarded as the “engine room” of Australia’s economy. The Victorian government supports innovation and growth, making Melbourne one of the most appealing and efficient cities in the world to start a business.
From a property investment perspective, be aware that rental yields have also been considerably lower than other capitals, at 2.8% for houses and 4% for apartments. For an investor looking to maintain servicing levels with lenders, these lowers yields can be a burden for future financing and cash flow requirements.
Off the plan apartments have received much negative publicity in recent times, however, like we are noticing in Brisbane, apartments which have high end finishes in desirable locations with good views are continuing to fetch good returns for investors. Apartments which have a point of difference are performing well compared to the rest of the apartment market.
There is significant ‘greenfield’ land development potential in greater Melbourne, especially to the west and north of the CBD. Whilst the population growth may result in a city larger than Sydney, it will be a much harder feat to surpass Sydney house prices due to this availability of land.
Contact Sound Property today to learn more about investing in Melbourne | 1300 655 899 | www.soundproperty.com.au/property-focus