A recent release by the Bureau of Statistics revealed that Melbourne is continuing to experience tremendous population growth.
During the year to June 30, Melbourne’s population grew by 74,600 people. To put this figure in context, Melbourne’s population growth was 20,000 more than Sydney’s and 57,000 more than Brisbane’s.
It is no secret that Melbourne’s rental market has been critically tight for several years and the strong population growth is continuing to add to the rental squeeze. There has been some easing in demand for larger, more expensive residential rental dwellings this year. But more affordable houses, townhouses, units and apartments are continuing to attract significant demand.
For most of the year, Melbourne’s auction market has recorded clearance rates in the mid-to-high 70per cent bracket. While population growth is driving demand, the low interest rates are also a major factor.
These two factors, combined with a very low level of supply of dwellings, means that there is hot competition for homes for sale and auction.
There has been an undersupply of new dwelling approvals for a considerable time.
The latest ABS data for dwelling and unit approvals in Victoria points to a seasonally adjusted increase of 5.5 per cent, however this does buck a long-term trend.
Significant private-sector investment and progressive government policy are required to drive new dwelling approvals before Victoria’s housing market can move to a more balanced position.
If interested in learning more about this update please contact me today!
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