Melbourne has been in the top 2 property markets in Australia for over 20 years.
- Sustainable and sound capital growth
- Strongest population growth in the country
- Construction – time to build
- Demand has not been met by supply
- Vic economy is non-correlated with other Australian economic drivers i.e. mining
- Low interest rates have brought buyers back into the market
- Discounting is falling
- Savings rates from -10% in 2007 to +10% in 2013 – Cash on the sidelines
- Debt reduction has provided more equity
- Construction being supported by monetary policy
- Leverage across the system is not high
- Auction clearance rates hitting the magic 70% figure
Melbourne continues to lead nation's population growth.
Melbourne has again dominated Australia's population growth, adding 77,242 people in 2011-12 to reach mid-2012 with a population of almost 4.25 million. For the year ended 30 June 2013, Melbourne again had the largest population growth of any Australian City, it grew by 95,500 people.
Melbourne has recorded the greatest population increase of all capital cities for the last 13 years.
Plan Melbourne expects that the Melbourne population could grow by another 3-4 million by 2051, to be a city of around 7.7million people. Projections by the ABS, go further to suggest that it could reach as high as 8.56 million. Victoria as a state, is expected to rise to around 10 million by this time.
The below figure shows the expected population growth in each Melbourne Subregion, expected by just 2031.
Melbourne Housing Requirements
To accommodate this growth, we will require around 1.6 million more dwellings by 2050 than we have today.
That is another 730,000 by 2031, just in Melbourne.