Reports on Australia’s residential market haven’t been glowing in the last six months, to say the least.
Whilst Melbourne’s property values may have declined, it’s not all bad news; dwelling values remain significantly higher than they were five years ago and the recent declines have provided an improvement to housing affordability.
House prices aside though, the good news is things are on the rise in new developments, and there is no shortage of employment opportunities in a number of roles across the sector. Here’s why.
Victoria’s continued population growth is tipped to reach 6.38 million by the end of June using the average growth rate of 1.81% over the last 8 years.*
As a result, Victoria will rezone 12 new suburbs across greater Melbourne’s west, north, northwest and southeast to boost the land supply and keep house prices low, accomodating 50,000 new housing lots in growth areas.
The new suburbs will be Beveridge North West, Wallan South & Wallan East, Merrifield North/Kalkallo Basin, Shenstone Park, Lindum Vale, Craigieburn West, Pakenham East, Officer South Employment precinct, Croskell, Kororoit Part 2 and Aviators Field.
Victoria is also continuing to attract skilled migrants and students from overseas, despite strong competition from other markets.
Jobs drive housing markets, and Victoria’s 2019-20 budget increases our previous $75 billion infrastructure investment commitment to a record $100 billion over the next decade. Projects like the Metro Tunnel and the removal of level crossings are employing 115,000 people alone, and nearly 1 in 10 jobs are now in construction.
Nearly 1,500 new households are being formed in Melbourne each week, and the supply of new housing is struggling to keep up with this burgeoning demand. First home buyers are back in the market since the election, and there continues to be strong foreign interest in Melbourne from tourists, migrants, investors and developers.