April 21, 2019 | 05:10 PM

Property & Home

18.07.2018Property round-up: Focus on Victoria

Victoria is perhaps one of Australia's best states to live in. From cosmopolitan cities to seaside towns, there's a living experience here for every personality.

Victoria is perhaps one of Australia’s best states to live in. From cosmopolitan cities to seaside towns, there’s a living experience here for every personality. Victoria is home to Melbourne, a place often ranked as the world’s most liveable city alongside Vancouver, Canada. That prestige and demand is reflected in the local housing market. Melbourne has a highly buoyant property scene and there have been some very positive statistics coming out of the state in recent years.

All eyes on Melbourne

The property market in the Victorian state capital is nothing short of amazing, and those who bought homes there five years ago experienced the benefits when the property market expanded by more than 50%. As is common with major cities, there have been some slight downward shifts over time. By February of this year, for example, there had actually been a -0.4% decline in property values in the previous quarter. But that’s nothing compared to the overall year-on-year growth, which rests at 6.9%. It’s clear that Melbourne is truly on the rise when it comes to property prices.

Demographic shifts

Melbourne is growing extremely quickly in terms of population, too. In a city that contains everything from top theatres to great shopping facilities, it’s no surprise that Australians and international buyers come in droves to live here. Although it’s never possible to be certain about growth trends and predictions, Melbourne seems like a safe bet for investors. Some experts have predicted that the city will grow by 10% in the coming years, with the possibility of ten million Melbourne residents by 2050 or so. That could mean a whole host of new people who bring with them a large demand for housing. Whether they come to study, work or invest, it’s likely that plenty of people will need a home in this city in the future. 

The wider state 

While performance in Melbourne is clearly strong, statistics show that there’s not a great deal of confidence in other parts of the state. In fact, stats from the National Australia Bank (NAB) show that there was actually a 19-point decline in property confidence over the long term in Victoria. There’s also evidence that other states, such as Queensland, are experiencing confidence drops which are smaller and more manageable in nature. So for those outside of Melbourne’s orbit, there may not be quite so much optimism in how the wider market is performing in Victoria.

Compared to Australia

When evaluating the overall market situation, there’s more to think about than just the state of Victoria. It’s important to remember that those who are considering living in Melbourne are also likely to look at Sydney and potentially Brisbane, Adelaide and Perth. The same goes for investors who are seeking property to buy and let.

But even by these metrics, Melbourne still stands out. Compared to the other major state capitals, it’s seen some of the highest year-on-year growth rates. Sydney, for example, saw a -0.5% drop in the year to February, while Brisbane saw a rise of just 1.8% – which is dwarfed by Melbourne’s 6.9% leap. While it’s true that some of the smaller state capitals performed better (Hobart, for example, saw a rise of 13.1% in the year to February), Melbourne stands out as the major Australian city enjoying both rising prices and global city status.

There’s no doubting that ups and downs are inevitable when it comes to Australian property, and the slight drops seen in the quarter around last Christmas and early 2018 are evidence of that. But fluctuations are part and parcel of the property price market. And as this article has shown, Melbourne continues to be a hotspot for investment both within the state and across Australia.

Top Stories on FatCat.com.au

Measuring the return of an investment property Renting out an investment property for $700 a week doesn't mean a thing, unless you understand how to calculate your...

News from TheBull.com.au

© Copyright 2019, FatCat.com.au. All right reserved.