Developer
Developer

MELBOURNE CBD IS GROWING

Melbourne is the fastest growing city in Australia. CBD population growth is driven by a number of key factors:

  • The growth in overseas migration, particularly skilled migrants and international students
  • Easy access to:
    • The key employment centers
    • Great restaurants, bars, clubs, parks and gardens
    • Major Universities: RMIT, Melbourne University, Monash University and Victoria University
    • Great public transport

The growing preference of people to reside in a more central location during the 2000s, has been highlighted by the population growth in the Melbourne CBD, which has grown over the past 5 years at a rate of 13.9% per annum.

Developer

POPULATION GROWTH UNDERPINS RESIDENTIAL INVESTMENT

Melbourne's population is currently 4.0m, will be 5.0m by 2025 and is forecast to be at 7.0m by 2035.

The expected benefits of the minerals boom and an expanding household sector will steadily permeate through the economy, supporting a lift in employment and investment – particularly residential investment – and a significant and growing shortage in dwellings.2

Developer

LOW RATES DRIVING RENTAL DEMAND

Melbourne's vacancy rate is 2.4% and has been less than 3% since 2005. Rents are growing faster than inflation which is good news for investors.

With new apartment supply being well below the long term average and on track to remain at low levels in 2011/2012, vacancy rates will remain tight. As a result, investor confidence will improve in the short term as economic growth strengthens and borrowing restrictions ease, while persistently tight rental vacancies will apply upward pressure on rents.



1 Economist Intelligence Unit survey September 2011
2 BIS Shrapnel February 2012