Known for its vibrant city living, sport, entertainment and innovative employment opportunities, Melbourne is a major drawcard for international immigration. Whilst this has been hindered in recent years, it is expected that students and graduates will once again flock to this popular capital city in the coming years.
Impacted by multiple long-term lockdowns that saw many residents relocate to other states and international migration come to a grinding halt, it’s not surprising that property investors may be wary of returning to this market. Despite this, according to CoreLogic, Melbourne has seen an increase in housing prices over the past 12 months with 12.5% growth. A strong result given the extensive lockdowns, though around half the increase seen by other capital cities such as Adelaide (25.8%), Hobart (26%) and Sydney (22.4%). And miles behind the country’s highest performer Brisbane which saw just shy of a 30% increase.
An Australia-wide interest rate hike is expected to hit late this year which will no doubt impact the Melbourne property market. This is already being seen by the building industry with the increase in production and construction materials which is tipped to contribute to a massive housing shortfall by 2032, making now an ideal time to investigate investment options in this popular destination.