Have you wondered why Melbourne’s property market has outperformed?
Well…I’m about to explain, and I’ll also tell you why it will continue to do so.
One of the fundamental drivers of our property markets is Australia’s strong population growth.
And recently the ABS released the latest Australian Demographic Statistics which showed that Melbourne’s population grew by over 123,000 people last financial year.
That’s over 2% which equates to a population increase of 10% over the next 5 years if this rate of growth continues.
Just think what that’s going to do to our property markets
Population growth by state and territory in 2015-16
|State/Territory||Population June 2016
||Growth from June 2015||% Growth from June 2015|
|New South Wales||7,725,884||105,585||1.39%|
|Australian Capital Territory||396,141||5,020||1.28%|
Source ABS and id.com
The clear winner is Victoria
Victoria has never added this many people in one year before.
There are so many of them that they couldn’t all fit into our MCG – and that’s saying something!
Over half this growth (65,000) is the result of overseas migration.
The rest was from net interstate migration and about 41,000 natural increase (births minus deaths.)
The chart below from demographic experts id.com shows the incredible interstate migration story for Victoria over the past 40 years.
Net interstate migration to Victoria, 1972 to 2016
How can you take advantage of this?
First of all it’s important to realise that there is not one property market in Melbourne, and in 2017 the various markets will be more fragmented than ever.
Some sub sectors of the Melbourne property market will still do well, but others won’t.
Strict property selection will be critical this year – you can’t count on the market doing all the heavy lifting for you
So, if you’re looking for independent advice, no one can help you quite like the independent property investment strategists at Metropole.
Remember the multi award winning team of property investment strategists at Metropole have no properties to sell, so their advice is unbiased.
Whether you are a beginner or a seasoned property investor, we would love to help you formulate an investment strategy or do a review of your existing portfolio, and help you take your property investment to the next level.
Please click here to organise a time for a chat. Or call us on 1300 20 30 30.
When you attend our offices in Melbourne, Sydney or Brisbane you will receive a free copy of my latest 2 x DVD program Building Wealth through Property Investment in the new Economy valued at $49.