Before Canberra was formed to become the capital, there were squabbles as to whether Sydney or Melbourne should be chosen as Australia’s capital city when the commonwealth was established back in 1901. Despite this, both cities have flourished over the years and the real estate market reflects this.
With a resilient rental market, a steady growth in property values, and government incentives Australia is fertile ground for property speculation, and despite some conflicting recent reports property investment research has proved Victoria has solid investment potential for property speculators willing to take some time to research the real estate market.
This thriving and diverse state which accounts for 3% of Australia’s land mass and boasts a population of 6.6 million requires serious consideration when committing to real estate acquisition.
Here are five reasons why Victoria deserves a closer look for property investment.
- Diverse Market Opportunities. From luxury high-end-long-term-growth opportunities to suburban homes and rural properties, Victoria offers a diverse range of investment portfolios. This diverse range of properties encourages investors to choose projects that align with their lifestyles and long-term aspirations.
- Strong Rental Market. Victoria’s strong economy has given rise to high demand in the rental market. In addition, the state’s world-class universities create demand for domestic and international temporary student accommodation. In 2022 Victoria saw an influx of well over 600,000 student enrolments. A quick search on holiday rental site Airbnb brings up over 1000 listings in Melbourne alone.
- Steady Growth. Cities such as Melbourne have enjoyed robust growth. All house types in the city have seen a growth of over 6% over the last ten years across the board with some suburbs seeing a doubling of property value over the same time period. In 2021-22 Melbourne has seen investment properties, that have been inspected and selected properly rise in value steadily.
- Lifestyle and Economy. Victoria’s excellent infrastructure, sound economy, and strong educational and financial structures spell an exceptional quality of life. Modern healthcare and the latest technology add to the investment attractiveness of the state. Aboriginal Australians are the world’s oldest civilisation with evidence of communities living in Victoria as long as 40,000 years ago making this a diverse and historic state.
- Government Incentives. Various initiatives such as the First Home Buyer, and Homebuilder Grant introduced by the Victorian government have helped to stimulate growth in the market. If buyers have a 5% deposit The Victorian Homebuyer Fund will contribute 25% of the purchase price in exchange of an equivalent share in property, allowing for mortgage reduction and allowing first-time investors access to that first important rung on the property ladder. With a growth of 13.7% for house sales and a robust market, some speculators anticipate that Melbourne will be Australia’s largest city by 2030.
In conclusion, while investment in Victoria looks great on paper, as with all investments thorough research should always be undertaken before investing in this or any other location. Different cities and suburbs perform with varying levels of profitability. With this in mind, investors should factor in decisive market trends in their chosen location, and perform a comprehensive inspection before committing to their lucrative investment acquisition.