According to a report by Your Investment Property magazine, despite the slowdown of the national property market, as of January 2018 Melbourne remains one of the 10 fastest-growing large cities in the developed world. This puts the city in the same category as metropolises like London and the Big Apple.
The demand created by the 144,000 new residents who moved into Melbourne over 2017 has been met by the high levels of apartment stock that have generated oversupply fears in the past.
“The Melbourne property market grew an impressive 57% over the last five years and now has moved from fifth gear into second gear, but it’s not going into reverse any time soon,” says Michael Yardney, CEO of Metropole Property Strategists.
“In fact, Melbourne is likely to once again be amongst the best-performing property markets in 2018.”
OpenCorp director Matthew Lewison supports this outlook, noting that Melbourne has toppled Sydney in the national property market.
“Melbourne has now firmly overtaken Sydney as the leading housing market in the country. While growth is more modest than it was a year earlier, reflecting that the growth is now being driven by different segments of the market, it is still reflecting a sellers’ market,” he says.
The city’s population is expected to increase by approximately 10% in the next four years. Growth is primarily observed in the Western Growth Corridor, where there are affordable properties that are ideal for first home buyers. For investors seeking highly profitable investments, however, the suburbs in the inner east, southeast and inner north are still the best bet.
According to the findings of the ANZ/Property Council Survey released in January 2018, Victoria’s property market has shown the highest levels of confidence in the country.
Top drivers include the anticipated construction activity to support tourism and the industrial sector. The high expectations for employment opportunities could spur greater population growth as well. Moreover, interest from foreign investors contributes to the rosy outlook for the state.