In 2017 Melbourne cemented its position as Australia’s strongest property market and demand for local real estate is set to continue into 2018. Ranked as the most liveable city in the world by The Economist for the sixth consecutive year, the global appeal of our city is apparent.
With the median price for an apartment in metro Melbourne now at a record $594,500, unabated population growth is the main driving factor. Australia’s fastest growing city since 2003, Melbourne's population grew by 2.4% to 4.6 million residents in the last financial year alone. In fact, according to the most recent census, Melbourne’s CBD is now the most densely populated region in Australia with 37,754 residents living within 2.4km. Across the City of Melbourne, significant transformation is well underway to facilitate continued growth and house a higher density population.
This population growth ensues the local buyer pool will be relatively stable in 2018. Stamp-duty concessions are encouraging first-home buyers to act on entry-level property priced up to $750,000. Investors will continue to enjoy high rental demand and strong rental yields. The main demographic change apparent is the growing population of downsizing owner-occupiers attracted to low maintenance living, predominantly larger apartments in higher quality developments. As new city schools take shape over the next few years, we will also see an increasing number of young families move in, and a corresponding effect on home prices.
Also underpinning the property market is the relatively low cost of borrowing money. Interest rates were left on hold at the historic low of 1.5% throughout 2017, and this low interest rate environment is expected to continue well into 2018. However Australian banks are now implementing stricter lending conditions, particularly for local and international investors. This may potentially lessen competition from these buyers as loan approvals tighten and larger deposits are required.
The Lucas Sales Team is excited for the 2018 property market, sharing, “demand for local property has never been higher. The growing popularity of city living comes as no surprise, considering what Melbourne, Southbank and Docklands have to offer in terms of location, amenities, accessibility and public transport options. As the city transforms to cater for our growing population, more Melbournians want vertical living in the heart of the action.”
To find out more about the current market, buying opportunities or for an up-to-date value of your home or investment property, click here or call 9091 1400.