House and Land Packages Melbourne
Property Update January 2019 : Outer suburban Melbourne values have continued to increase year on year over the past 5 years with each of these financial years seeing a progressively faster rate value of growth. Inner suburbs whose properties sit significantly above the median value where less people can afford to buy and live, these values peaked in 2018 and started to drop to more realistic market values through to 2019. Melbourne is a very hard market to read but having the strongest population growth shows no sign of insatiable demand for dwellings to own or rent slowing down primarily in the outer and emerging suburbs and satellite cities.
Property doomsayers predicted Melbourne to be the worst performing city and Victoria to be the worst performing State in Australia. WRONG and if you continue to listen to the so called ‘experts’ it is at your own peril. Right now even today the media misrepresent the facts.
“Did you know that by comparison, only a small fraction of overall property in Victoria has actually dropped in value, when the overwhelming majority of property has and continues to rise in value!” Read more here
Melbourne home values rose by +14.2% over past 12 months, this strong market performance is underpinned by the strong population growth Melbourne is undergoing with around 1,400 new residents every week and on the back of a sound economy which is creating new jobs
Australian Bureau of Statistics 30 March 2016 “Melbourne our fastest-growing Capital, population growth of 2.1% in 2014/15, now an estimated 4.44 million residents in Greater Melbourne.”
According to new figures released by the Victorian government, Victoria is the fastest growing state in Australia and our population is expected to rise to over 10 million by 2051. The report on Victoria’s population and household projections to 2051, Victoria in Future 2016, indicates upward trends in migration, birth rates and life expectancy. No Australian city has experienced growth of this scale before changing Melbourne forever.
“The figures show strong population growth across the state will continue,” said Danni Addison, Victorian Chief Executive of the Urban Development Institute of Australia.
“Melbourne’s population is set to double within 15 years, meaning we need new housing to accommodate the growth” … can you now see your investment potential?
Australia’s fastest growth city with Geelong in second place with only 4 cities outside of Victoria being Gold Coast, the Sunshine Coast, Brisbane and Sydney taking the balance of the growth.
Population Growth places upward pressure on housing supply and pricing. Affordability is affected but current owners benefit
Migration the main factor with 3 in every 8 residents settling into Melbourne or inner Victoria, ie. 75% of the nations population growth is coming into Victoria. In the year to June 138,000 new residents settled into Victoria. The migration boom is transforming the city with the second wave of large-scale migration primarily from India and China expecting to continue well into the future
Renewed population growth will also come from Victoria’s high Gen Y’s in their 20’s and 30’s adding to the highest birth rate in Australia suggesting a lot of babies will be born here in the next 15 to 20 years adding to the increase of the new wave of population growth breaking over Victoria/Melbourne
Effective Infrastructure Planning requires major review and investment to provide services for this growing population. Adequate planning and approvals for new dwellings (estimated at over 65,000 per annum) needs to be provided and built to house this population as every suburb within 10km of the core now has more people living in it than there were 2, 3 or 5 years ago. An astounding statistic you would agree
The Bureau estimates refute claims that Melbourne’s growth is concentrated in a few areas. Of 66 suburbs or groups of suburbs it identifies within 10km of the city, all but nine grew by at least 10 per cent in the decade – and 26 grew by at least 20 per cent. That trend has been under way for some time, and is now accelerating. Since 1991, the inner area of Melbourne has added about 300,000 people, increasing its population by 40 per cent
Just over half the growth in the past decade took place in suburbs more than 20 kilometres from the GPO. The Bureau’s estimates show a growing proportion of it is in outer western and northern suburbs such as Point Cook, Craigieburn and South Morang, but with the south-eastern tail still wagging strongly in Cranbourne and Pakenham
For homebuyers, that’s where the affordable housing is, and they have no choice but to accept higher transport costs and travel times as the price of being able to own their own home. Transport infrastructure requires major investment to service both inner Melbourne and outer Melbourne Suburbs taking residents to their place of work and play
Did you know “as Melbourne’s population grows our apartment market matures. Demand for apartments within the inner and middle suburbs is inevitable. Property constantly adjusts to establish a healthy balance between supply and demand.”
Download full report here
Victoria 10 million residents by 2031 read here
Certain regional locations in Victoria and certain suburbs in Melbourne are far from flat and certainly higher all round than this time last year :
Summary : No indication of any property boom, indicators towards steady consistent moderate improvements; higher growth and higher rental yields in Regional Victoria preferably on a Rail Link, over inner Melbourne suburbs
[hr]Driven by affordability, preferences, low ongoing maintenance, close proximity to work and lifestyle choice … most people prefer to live withing 8 – 10km of a CBD.
With median house prices as high as they are in these inner suburbs, the affordability of the majority lies within being able to Rent or Own a property valued between $350,000 to $550,000
Leaving little choice but to occupy an Apartment. High competition for the same dwelling leads to stronger capital growth and increased rental yields within this high competition belt
The old adage of Land improves in value whilst buildings depreciate is no longer applicable in most world cities based on the above
RENT : although there is a significant difference in House Prices compared to Apartments in the inner suburbs, there is a far stronger rental yield on apartments over homes giving the investor a significantly higher return on their investment over the period one holds the property!
Around 4 out of 10 new dwellings (39%) being built are now apartments, around university campuses and hospitals this number goes up
[hr]
Inner CBD, Docklands, Southbank
[hr]
[hr]
Regional Victoria continues to astound the so called property experts by often outperforming inner Melbourne Suburbs in both Capital Growth and also Rental Yields + lower vacancies
Read more on Australian migration to towns and satellite cities due to infrastructure investment, new jobs and population growth for lifestyle here
[hr]A substantial city with population growth plus a multi faceted economy with an affordable lifestyle and good proximity to Melbourne
A substantial city with population growth plus a multi faceted economy with an affordable lifestyle and good proximity to Melbourne
Geelong in the past was very reliant on car manufacturing yet today is a stronger having a variety of industries successfully underpinning its economy thus less exposed to the likes of Ford closures – also new Rail Link will improve commute times to Melbourne or other job nodes
About to command more attention with the imminent launch of the massive ($4.4 bn BHP Bass Strait Gas Project) processing plant in Sale. History shows that major infrastructure announcements and commencement of these projects reflects strongly in capital growth and increased rental yields
Spurred on by strategic location (NSW & Vic) with easy access to Canberra, Sydney or Melbourne by road or rail. A growing population and economic diversity of the local economy, with a quality lifestyle and affordable homes
Berwick offers the opportunity where Hospitals and Universities are clustered together providing immense job opportunity in the area putting pressure on demand for accommodation by students, employees, lecturers and medical staff
[hr]An under rated good performer in the Melbourne market
Current future potential based on new growth and new housing estates being affordable, located on train links with easy access to Melbourne via freeways or local job opportunities on the back of Industry Expansion
[hr]Affordable housing in close proximity to Geelong and the Geelong Ring Road having all the advantages that Geelong residents receive
[hr]“Where ever one chooses to Invest, an investor (or owner occupier needs to undertake their own due diligence and be selective as growth is not evenly spread across Melbourne metropolitan or regional areas”
[hr]Investment Property Fundamentals 1 … more
Investment Property Fundamentals 2 … more
One thought on “Melbourne Property Stats”