This article has been provided by the research team at Blue Wealth Property
Melbourne, it holds one of our strongest economies, an appealing café culture and has been voted the world’s most livable city 7 years running. On a macroeconomic level, the city possesses everything that we look for in a property market; significant public and private infrastructure investment, strong population growth and a thriving economy. Melbourne has become a melting pot of factors that induce demand from Australian and from all over the world. Over the last financial year alone Melbourne experienced an addition of 120,000 new residents, its largest annual population growth in history.
The reality is, Melbourne’s population is growing faster than anywhere else in Australia, with an average of 2,200 new residents per week over the last 2 years. At an average dwelling size of 2.7 people per household, the Melbourne property market currently requires an additional 825 dwellings every week to keep up with ongoing housing demand.
Melbourne’s economy is growing strongly along with it’s demographic, with a large number of major multinational companies now calling the city home. Reports have found that half of Australia’s largest manufacturing centres are now established in Melbourne. Victoria also now absorbs over 40% of government medical research funding, which is almost double that of New South Wales. This all points to an economy that is moving with the pace of it’s population, and it seems that it will be sustained over the long term.
This rapid level of growth hasn’t gone unnoticed, with the Australian Bureau of Statistics forecasting Melbourne to take over Sydney as our country’s most populous city by 2051. It is expected that an additional 3 million residents will be added to the population in the next 23 years, taking the total population to 8 million (read more here). At this rate, Melbourne will be bigger than modern day New York and London in just over 2 decades, let that sink in.
Coining the term adopted by Bernard Salt, Melbourne may be moving towards a period of ‘Manhattanisation’, as it becomes more densely populated. Ultimately, Melbourne is now exhibting a blue-chip alternative to the Sydney property market without the hefty price tag. As a result, we are confident about the future of Melbourne as a property market and the prospect of the city as a long term investment.