The findings from a recent research report into global investment has named Melbourne among 12 cities poised for strong property price growth[i]. The report, the Candy GPS Report, was produced by Candy & Candy, Deutsche Asset & Wealth Management and Savills World Research, and focused on established and up and coming cities where residential property investment was likely to increase over the next few years. Along with Melbourne, the survey picked Chicago, Dublin, Tel Aviv, Jakarta and Cape Town as among the “rising stars” for investors to consider, as some of the capital cities around the world become fully valued over time.
Analysis suggests that residential property prices within this select group of cities are still relatively low compared to country averages, making them a more attractive option for investors looking for higher rental returns and capital growth over the long term. The report also states that it is likely that as real estate values grow generally with an improved global economy there will be increased property investment demand in both established and developing cities.
Melbourne Is Considered A “Stand Out” City For Property Investment With a population over 4.2 million people and a high GDP per capita of around $41,000, Melbourne was one of the stand out cities for property investment opportunities listed in the report. Analysis of all the indicators suggested that property investment in Melbourne should grow over the coming years thanks to the city’s economic prosperity and development. With a strong technology and R&D sector, Melbourne was also considered a “safe haven” among international and local investors. Other factors that made Melbourne and the other cities on the list more attractive to investors included:
- A well educated population. High value professionals will not only ensure property values remain stable but also be more likely to pay higher rent prices.
- Friendly or favourable policies encouraging international companies to do business within the city
- Being seen as a financial hub in the region
- English as a first or second language, making it easier for business to be conducted
- An outstanding natural environment including water and greenery, as well as a strong historical and architectural heritage
Based on these requirements Australian capital cities such as Sydney, Brisbane, Perth and Adelaide are also well placed to take advantage of increased local and international demand from property investors. Looked at on a local level, properties within the “inner circle” of major capital cities also provide some of the best investment opportunities for capital returns and income.
Property investment experts suggest that the key to making solid financially driven decisions about where to invest is a matter of research as well as setting realistic long term goals. It can also be invaluable to find residential property investment experts who can assist with the type of in depth research on types of suitable property and locations needed, as well as providing “on the ground” experience and knowledge.