They say “a rising tide lifts all ships” – but that hasn’t been the case for the Melbourne property market.
What it showed was that in the case of Melbourne house prices there has been a dramatic widening of the divide which separates the old middle-class suburbs south and east of the Yarra from the old working-class suburbs on the other side of the river.
Similarly while over the last 20 years, while median prices in Melbourne climbed 8% to $600,000, the median price in country towns rose just 5% a year to $307,500.
A lot has to do with population growth.
Melbourne’s has been adding close to 100,000 people a year to it’s population, which in the last 16 years has grown by more than a third.
At this rate by 2020, Melbourne’s population will be close to 5 million people.
By 2021, it will be half as big again as it was when the new century began only 21 years earlier by adding about 1.5 million more people.
And they’re not coming because of our weather are they?
It’s because of our strong economy and jobs creation.
This massive growth is not only pushing up property values, making it harder for first home buyers, but this massive growth is giving us a town planning headache – we do we fit in all these people plus their cars, and how do we cater for their needs: from schools to healthcare to public transport.
Want to know how your suburb has faired?
Domain provide this interactive graphic to see how property values in the various Melbourne suburbs have increased overtime.
Just input your suburb name and you may have to scroll down to see the results:
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