Why buying property in Melbourne?
Investing in Melbourne, particularly in residential property brings investor attractive potential return. The reasons are:
- Historically the price of apartments in Melbourne is 20-25% more affordable than Sydney. However, the current price difference of CBD apartments between the two cities is 45%.Therefore Melbourne has greater growth potential than Sydney.
- Melbourne property price has continued to strong strongly over the years.
- High investor confidence towards Melbourne property market has motivated investors to buy a new property.
- The increasing number of immigrants: The population growth in Melbourne is beyond other cities thus increasing the demand for property. The population growth is about 4% per year.
Facts in residential occupancy:
- First home buyers consider now is the right time to take property loans due to low interest rates.
- Demand for rental property has continued to grow since 2008, pushing the rental price up, and keeping the percentage of vacancy rate at low level.
- Shortage of a new housing stock has increased rental prices and property prices increased rapidly.
- The fact that Melbourne is one of the most affordable property markets in Australia and incentives given by central and local governments for a first home buyer boost interest in purchasing a property
- The increase in rental rates and low interest rates has generated profits for investors.
- Comparing with other world economy growth, Australia has a very strong economic growth compare to other countries such as: UK, US and Korea (according to CIA data 2010).
- Having a strong property record for over 30 years has made Australia the country that can provide attractive and consistent gains in property investment.
- Australia has a clear property law and a low risk in the process of buying a property, where the process is efficient, easy, open and transparent.
- The price of property in Melbourne particularly Apartment is relatively stable and even tends to increase