The population of our great city has recently hit the 5 million mark – on August 27, 2018 - a very significant milestone that is testament to Melbourne’s ongoing popularity. Melbourne holds the title of Australia’s fastest growing city, and is indeed one of the fastest-growing cities in the developed world, with Australian Bureau of Statistics data showing it grew by 2.5% each year between 2011 and 2017, compared to 1.8% for Sydney. Meanwhile, Victoria is the fastest growing state in Australia, accounting for 37% of the country’s annual population growth. According to research from Mc Crindle, another 143,400 people moved to Victoria over the past year, which was more than New South Wales, South Australia, Tasmania, the Northern Territory and the Australian Capital Territory put together. Going forward, Melbourne is expected to overtake Sydney as the most populated city by 2026.
So why do so many people want to live in Melbourne? The list is extensive, including a great lifestyle, plenty of culture, lots of events, an abundance of amenity including great restaurants and shopping, and a strong economy.
The good news for people moving to Melbourne – as well as those already living here – is that you can still find affordable property, despite significant price growth in recent years. When considered next to our other major capital of Sydney, Melbourne’s affordability is a big drawcard. The median dwelling price is $150,000 less than Sydney, with the median house price sitting at just over $800,000 and the median unit price sitting around $560,000, according to the latest Core Logic figures. Recent research shows how affordable Melbourne is compared to Sydney, with data from RateCity.com.au finding it takes around three years less to save a deposit as a single (saving $200 per week) and around two years less as a couple (saving $400 per week) for a median-priced apartment..
In good news for investors, the latest figures from the Real Estate Institute of Victoria show the rental vacancy rate has hit a record low, falling to 1.8% in July, significantly less than the 3% that is considered a balanced market, and tipping the scales in favour of landlords.
If you want help finding an investment-grade property in Victoria that will stand the test of time, contact us for some advice today.
Is Melbourne’s infrastructure keeping up with growth?
There is one very significant way to cater for growth on the scale Melbourne is seeing – and that’s the provision of infrastructure.
While this is commendable, and a positive move forward for our city, I think the Government needs to stop merely playing catch-up and do some genuine transport planning to accommodate the forecast population of eight million expected to land in Melbourne over the next three decades. Infrastructure Victoria has a 30-year strategy in place and the Government – both current and future, if there is a change at the election – needs to consult with them before making announcements to the public. The upheaval and congestion experienced by Melbournians over the last 18 months while using roads, freeways and rail lines needs to be kept to a minimum moving forward, regardless of who is in power.
For advice on which areas will benefit from proposed infrastructure in Melbourne and where to buy, contact us today for an obligation-free discussion.
Why do you need a buyer's agent?
The current fickle market conditions are tough to navigate, with parts of the market hot and others cold, which makes having someone on your side – a buyers’ agent – even more crucial. Buying property is something most people only do a few times in their lives, which means they’re fairly inexperienced. In a tricky market you need someone with experience and expertise to help guide you to buy the right property at the right price.
One of our clients recently found out how beneficial it can be to have a buyers’ agent working in your best interests. Gary and Emily engaged Property Mavens to assess and negotiate to buy their family home. After missing out at auction and struggling to price property in a fickle and changing market, Gary and Emily needed our expertise to assess the true value of the property, provide them with anonymity in the suburb and bid for them at auction. And our carefully researched and considered strategy worked!
We purchased a 4 bedroom, 2 bathroom house in Melbourne’s Blackburn South under budget, going up against one other bidder on the day. We also identified assorted building issues in the due diligence period that were able to be addressed prior to auction day. In addition, we negotiated extra special conditions to benefit Gary and Emily.
Back in 2013 we met Ruby, who was referred to Property Mavens by her brother, a property investor and land surveyor. Ruby only had a small budget and needed a positive cash-flow property, so that she could pay it off before retirement and own her own home.
We purchased a 3 bedroom, 1 bathroom house in Ballarat on Ruby’s behalf for $245,000 at the time, which was $25,000 below asking price. Fast forward to today, and Ruby owns a home worth $350,000 (equating to a value rise of 8.6% per annum or 43% over the five years) on a large sub dividable block of 712 sqm.
If you want similar results, click here to book a time with us to discuss your requirements. It’s 100% obligation and cost free.
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