The Melbourne property market has experienced explosive growth for the last several years, and with prices continuing to rise, some are becoming sceptical about how much longer the upward trend can continue?
A key factor influencing housing markets is population growth; Melbourne’s population has been expanding rapidly and this growth is predicted to continue for some years to come.
Bernard Salt author and forecaster has some bold predictions about the future of Melbourne’s population below: • Melbourne’s population by 2021 is expected to be well beyond 5 Million people • By 2030 Melbourne will overtake Sydney as the most populated capital • By 2050 Melbourne should expect over 8 million residents.
This is supported by data provided by the ABS which shows Melbourne is "Australia’s fastest growing city”. Additionally, Melbourne recorded its highest-ever net annual population increase of 125,000 with very high growth rate of 2.7 per cent (2016-17).
Concerns about the market “cooling” due to the royal commission into banking practices and tighter lending restrictions is not something to be ignored, and will no doubt reduce demand short term and possibly even lead to price falls in some locations however, this will serve to stabilize the market and enable strong medium to long term growth conditions.
It is also worth noting that interest rates have been at record lows for some time and the Government has implemented a number of incentives to help assist first home buyers to enter the market.
Overall, things look promising for the future of Melbourne and those who are willing to hold on to their homes/investments for the long term.