There is something to be said when Melbourne’s population rate is currently growing the fastest it has for a long time yet property prices are on the decline. So what’s going on?
During the last few years Melbourne’s inner city growth rate was more than five times that of any other capital city. In real numbers that’s about 12,00 new people or 8.1% growth for the CBD alone. Looking at other Melbourne municipalities,grew by 6.1%, Cardinia 5.0%, Melton 5.0%, Casey 4.4%, Whittlesea 4.1% and Hume at a respectable 3.9%. Interestingly, large volumes of existing residents migrated away from Greater-Dandenong and Monash.
With over 75% of Victoria’s population residing in Melbourne, Victoria is the most centralised state in Australia but all is not gloom and doom for regional Victoria, with Geelong growing by 2.6% and other regions also experiencing reasonable growth.
Victoria has been an average performer over the last 20 years when comparing population growth rates but that changed in 2014, and Victoria continues to lead the charge in population growth ever since. This seems to signal greater stability in Melbourne’s property prices over the longer term than other states.
Whilst population growth is a factor, there are numerous other factors that property buyers and investors need to consider that can influence property prices. These include major government infrastructure and policies, booms in industries (such as mining which WA experienced a decade ago) and of course job creation.
If you would like to find out more about recent property trends, don’t hesitate to contact us.
Source: ABS 2016