Rising potential in Melbourne's property market
We’ve been focused on the trending of Melbourne Apartment Pricing for a long time. According to the data released by Australia's well-known real estate research institute SQM Research, as of 2017, vacancy results in all capitals in Australia are declining. The vacancy rate lowered down to 0.1% in the fourth quarter, and fell down by 0.2% throughout the year. Among them, Melbourne apartment pricing rose by a outstanding result of 4.5% as its vacancy rate fell to 1.8%,.
This set of data is transmitting a message to global investors that Melbourne's property market has a high potential and investment value, especially Melbourne apartments.
Reserve Bank of Australia cash rates remains low
Since August 2016, Australia's cash rate has remained unchanged at a low historical record of 1.5%. It is predicted that in the future it will maintain a low interest rate of 1.5%.
Lower cash interest rate means more market clearance rate, which is one of the important factors for the overall rise in Australia's housing prices .
Increasing apartment pricing in Melbourne
Melbourne's housing prices have always maintained a increasing trend. In recent years, Melbourne 's apartment prices have risen even rapidly in several regions. According to data shown by CoreLogic, Melbourne has a total of 141 properties out of the 609 Australian properties which are worth up to 609 million dollars. However, five years ago Melbourne only had 30 capital cities that are worth up to a million dollars. Nowadays, this number continues to rise and it has been predicted that in the next few years the property market in Melbourne's Western regions will be more prosperous.
Population growth, improved infrastructure and Melbourne's apartment pricing promotion.
"The Times" reported that as of 2016, the Australian census has shown that within the past five years, Melbourne immigrants increased by a total of 485,220 and most of them are from overseas or other Australian regions. Currently, Melbourne is Australia's fastest-growing capital city and is expected to overtake Sydney by around 2031, ultimately becoming Australia's largest city.
At the same time, the rapid population rise has brought more housing demands. During peak times in January and February each year, oversea students have a strong demand for Melbourne apartments. However, Victoria's housing constructions has declined and BIS predicts that there will be a dramatic decline in the number of newly-constructed Melbourne apartments. BIS asserts that it is likely to drop from nearly 19,800 suites during peak times in 2015 to only 7200 suites in 2021. The property market will face a serious shortage of housing supplies, thus Melbourne's apartment prices have eventually risen.
The Victorian Government is planning to upgrade the infrastructure of 100,000 residential units in the neighborhood, where Richard Wynne, the director of the Victoria Planning Agency indicates that it is vitally important to stabilize land supplies and launch high-quality regional planning.
In the next 10 years, the Victorian government's infrastructure spending will rise from an average of 4.9 billion Australian dollars a year to 8.4 billion Australian dollars. This will undoubtedly provide support for the growth of housing prices.
For further enquiries, do not hesitate to contact the professional sales team, or property leasing & management team at Elite on 1300 354 839, for more information and professional advice for your property.
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