What are Melbourne’s Growth Areas in 2017?
Last year, Melbourne enjoyed double digit growth and was voted as the world’s most liveable city for the sixth year running, there is no doubt that Australia’s property performance has been recognised worldwide. According to the latest stats in Domain, Victoria’s state capital has plenty of fuel left in the tank to continue to outperform the other capital cities well into 2017.
The performance of Melbourne’s property market relies heavily on a variety of market conditions, many of those factors seem to remain unchanged into the New Year, such as strong domestic and international migration rates; housing affordability; an ever attractive sporting and cultural mecca and good old supply and demand.
The most optimistic tip for Melbourne would be based on its current migration levels. If the city continues to grow at its current rate of 100,000 new residents per annum, Melbourne is well placed to overtake Sydney’s population size and thus become Australia’s largest and most expensive city before 2050.
Let’s take a quick look at some of the growth areas in Melbourne in 2017. In comparison to other cities, Melbourne’s long term statistics look very promising, but what about in the short term? Let’s have a quick look at some of the growth areas for Melbourne in 2017.
Let’s have a look at the Inner North which is well serviced by public transport, cafes etc. and is the epicentre of urban hip. Looking at the data from last year, there has certainly been a noticeable ‘ripple effect’ from Carlton and Fitzroy which has undulated out towards Brunswick, Northcote and Thornbury.
Coburg, Preston and Reservoir are areas which are in need for some revitalisation. Coburg in particular will initially look very appealing to millennials searching for affordable housing, as these suburbs adjust to the younger demographic we will see the suburb’s appeal continue to increase.
Another area we have our eye on is Footscray, however sourcing the ‘right’ property will require more due diligence then last year. Property growth will be street specific, if not refined at to a finer level. This is because there is a considerable amount of large scale development happening in Footscray and if buyers are not careful, their super-savvy investment decision may get parked in and overshadowed by an immense residential complex.
As a part of Australia’s leading buyer’s agency – we like to take a big step back and review the city’s performance in its entirety. Last year, Ascot Vale’s statistics stacked up nicely and continues to do so into the new year, however despite this we still come across stock in this area which seems to be slightly undervalued. Similarly to Footscray, success in Ascot Vale is a tricky street specific manoeuvre.
Buyers looking in the Inner South East in 2017 would be well placed to search around the Inner Bayside between Port Melbourne and West St Kilda. We would go as far to say East St Kilda and the surrounding suburbs would be fairly resilient choices.
The areas which appear to be slowing in Melbourne are those where rental compression has occurred, namely Yarraville and Seddon. We have been calling into question the perceived “value” of these suburbs, particularly when we compare the quality of the properties to their counterparts in the North.
Another suburb we would “red flag” would be in East Brunswick. The number of apartments currently on the market, compounded with the looming pipeline of more apartment being completed; under construction; at approval stage; or the continuing acquisition of infill sites means this are a is susceptible to oversupply.
Indeed, the best time to buy is now – the sooner you pay off your mortgage, the sooner you can enjoy the financial freedom you deserve. Property is a long term investment and must be created accordingly. It is going to be an exciting time for Buyer’s Advocates in Cohen Handler because we get an opportunity to watch the properties we have bought demonstrate resilience and continue to perform well as their comparables begin to show signs of weakness.
The value of using a Cohen Handler Buyer’s Advocate will become much more apparent to prospective buyers in 2017. If these buyers are serious about investing successfully in 2017 there certainly are opportunities to do so with Cohen Handler’s Melbourne Office.