The supply of housing is another major factor and there is a well-documented undersupply of housing across Australia, and Melbourne is no exception. All of this points towards a positive outlook for buyer demand and activity.
The number of international immigrants and expats returning to Australia is notable, with the Australian Government’s Centre for Population anticipating that Melbourne will reach a population of 6 million by 2032, positioning it to take the title of Australia’s largest city. These additional tailwinds of immigration and population growth, along with supply issues, point to growth in the property market in the future.
Ongoing challenges in relation to renovation costs and build prices have meant quality turnkey homes across our marketplaces continue to excel.
As always, the top end of premium markets in inner Melbourne are not as impacted by economic factors as other segments of the market, and this, as well as a relatively low supply of available homes, has meant this small segment of the market remains highly sought-after and extremely competitive.
While activity abounds, the dynamic in the property market outside of metropolitan Melbourne has shifted due to increases in land tax. Taxation changes are having an impact on the flow of listings in regional Victoria and coastal markets such as the Bellarine and Mornington Peninsula, where clients are increasingly considering rationalising their property portfolios due to cost increases. If interest rates ease, as economists predict, and if Australians continue to foster ambition for lifestyle, we expect these marketplaces to rebound and ultimately thrive.