Melbourne has been voted the world’s most liveable city six years in a row as of 2016. It’s not surprising then that most of the worlds famous locality is seeing property prices now grow faster that its main national competitor, Sydney.
Homes sold in Melbourne went up by an average 6.9 per cent in the year to September, compared with just 3.2 per cent in Sydney, according to the latest data from the Australian Bureau of Statistics.
What’s causing this? The simple answer is supply and demand. The affordability of Melbourne housing combined with the city’s reputation for culture and sport is extremely appealing for national and international homebuyers alike.
Melbourne is now expanding by about 100,000 people every year. A lot of these people have the money to purchase homes, and are doing so.
The median dwelling price in Melbourne is a little over $700,000, compared to Sydney where it is around $1 million.
Forecasts predict Melbourne to become Australia’s biggest city by 2050, with figures showing the city’s population growth outpacing Sydney for several years in a row. Sydney’s population hit 5 million in 2016, whilst Melbourne is around 4.7 million.
This large and fast past demographic growth is accompanied by growing house prices
Currently, the lower house prices in Melbourne are also a drawcard for potential homebuyers. This is particularly appealing when combined with accompanying lures like education, café’s and community culture.
It’s very possible then, that if this trend continues, Melbourne may surpass Sydney when it comes to price points in the near future.