Melbourne Australia Real Estate
The Economist Intelligence Unit's Quality of Life study has named Melbourne the most liveable city in the world. The city's rich cultural offering is a big part of why it received the highest accolade, according to a new report by The Economist.
It is not surprising that people continue to call Melbourne their home, but it is likely to be seen as a long-term necessity, as Melbourne is regularly ranked among the most livable cities in the world.
Despite this, the cuts will undermine Melbourne's property market, but if the forecast is accurate and likely to be accurate, it will underpin the strength of Melbourne's property market and provide certainty to investors who own property in the right location.
The Australian property market will start to flourish in 2021, just as the Australian economy is lifting. Although the vaccine is still a year away, it is difficult to be too optimistic about the future of Melbourne's property market after the vaccine was released, as it has been years in the making.
The bottom line for property investors in Melbourne is that inner and middle ring suburbs will generally be below the average for suburbs further out of the city. Studies have shown over time that the increasing number of residential properties in inner-city districts increases the value of properties in these areas.
As in most major cities, Greater Melbourne is divided into East and West districts, with the East more established and considered more affluent, while the West is more affordable as a new, less established suburb. Some of the best examples of property include the Kangaroo - a dotted farmhouse in the north - west of the city, the North Melbourne high-rise or the two-storey house in South Melbourne. Finding and buying a house in Melbourne's inner-city ring for less than $500,000 costs just $1,500 on the market.
Neighbouring Toorak and the city of Stonnington also have some of Melbourne's most valuable properties. Kew is another Melbourne destination offering a mix of high-quality and affordable properties as well as a wide range of affordable homes. The area is characterized by its low residential buildings and is located within the inner suburbs of the city - east and south - west.
Melbourne hosts millions of international visitors each year and 854,000 people use the city on an average day. Melbourne Airport handles more than 30 million passengers each year, making it one of the busiest airports in the world and the second busiest airport in Australia. In Melbourne and Sydney, almost half of the jobs across Australia have been created in the past decade by service industries such as retail, hospitality, tourism, education and health. Victoria has gone from a manufacturing state to a service sector that has created more jobs than any other state or state in South Australia, Melbourne, Sydney and New South Wales (NSW). Moreover, over 500,000 new jobs have been created in the last five years as Victoria has moved to a service state driven not only by manufacturing jobs, but also by the creation of service industries.
Melbourne's property market dynamic has also created a wealth effect, as many of its residents have better-paying jobs and feel wealthier as the number of jobs continues to grow in service industries such as retail, hospitality, tourism, education and health.
While house prices have held steady, Melbourne's rental prices have seen weaker conditions in recent years. Investors buying rental properties in high-supply areas are taking a higher risk, with a much higher equity and cash flow risk. Property investors in Melbourne generally hope their income losses will be offset by their capital gains when they eventually sell their properties. This is due to the low returns investors can get from the rental market, partly due to a lack of supply and low interest rates.
While 2.5% vacancy has traditionally been a balanced rental market, the vacancy rate is tight, at 1.2% for several years, according to the Australian Bureau of Statistics.
It is ironic that Melbourne, which has won the title of the world's most liveable city, is locked down for four months until 2020. Of course, this has led to a turbulent year for the Melbourne housing market. The reopening of Melbourne has caused a sharp drop in property market activity, and rental markets in Sydney, Melbourne and Brisbane have shown strong downward movements. At the end of 2018, apartment and house prices have deteriorated significantly, Sydney rental prices have fallen by 8%, while house prices have fallen by 9.2%.
Melbourne is on a similar trend to Sydney, and if current rates continue, Melbourne will overtake Sydney as Australia's second most livable city by 2020. At current growth rates, there is the potential for Melbourne to show trends similar to Sydney in the next few years.
Melbourne will overtake Sydney by 2030 to become Australia's largest city, according to demographer Bernard Salt. Brighton is another Melbourne destination worth considering, with a population of more than 1.5 million people and an average annual income of more than $100,000.