The steady rise in demand for medium density housing, townhouses, terraces and townhomes has taken hold of the property market since the change in off the plan stamp duty regulations at the end of financial year, June 2017. Investors that were previously solely focussed on off the plan apartment and house & land package property investment expanded their selection criteria to also include townhouses.
Mid 2017 is an important point in time for off the plan townhouse investment in Melbourne.
The Victorian house and land package sales market was at its highest point for many years. If you were trying to buy in a master planned community in the growth area suburbs of Melbourne at this time you would have had to registered and receive either a lottery number to pick a block of land from the land stage release or literally line up which, due to demand, often meant sleeping the night in your car or pitching a tent! Too much effort for no guarantee of being able to purchase your preferred block of land, size or price of land.
Demand for Melbourne off the plan apartment investment post June 30 2017 lessened due to the Victorian government state stamp duty changes in addition to many property investors in Melbourne looking to buy now for investment and move in a few years time when ready to downsize or alternatively the other way around be first home buyers who would then hope to upgrade,move out and this property then becomes their first time property investment. Townhouses are the preferred property investment product for this scenario.
Population growth is the foundation of every capital cities property market growth and health. More people, more demand. Australia’s population growth is booming reaching 24.6 million as at 30 June 2017, an increase of 388,1000 from 20 June 2016.
Victoria, including greater Melbourne, had the largest population growth in the nation with 144,400, followed by New South Wales with 121,800 and Queensland with 79,600.
Greater Melbourne had the largest population growth with than 125,400 in 2017, an increase of 2.7% and taking Melbourne’s total population to 4.9 million people. Additional growth contributed with migration accounted for 64%, births 29% and interstate migration 7%. Melbourne with 2.7% had the fastest growth over both Sydney and Brisbane with 2% growth each.
Education is Victoria’s largest export with over 175,000 international students studying at any one time. Students are attracted to Melbourne over other capital cities for the number of university offerings and safety and security with Melbourne being the most liveable city for 6 years in a row.
International students generally have above average spending power and being in Melbourne for extended time, 3 year degree or more, the preference for off the plan and built townhouse development product over and above high rise Melbourne CBD apartment product is increasing in popularity.
Secondary School Zones in suburbs such as Balwyn and Mckinnon with excellent academic results increase demand for families to live in school zones which are increasingly targeted by builders and developers as dwelling demand increases in these boundary zone.
Melbourne’s geography bounded and divided by Port Phillip Bay, the Maribyrnong River and the Yarra River effectively divides the Western, Northern, East and South Eastern Suburbs into suburbs catchments with unique cultural character and appeal, green parkland and open space supported by amenity but also supporting infrastructure and transport for access to Melbourne’s central business district.
Melbourne’s property market is further enhanced as the cultural capital of Australia. Cultural tourism accounts for 32% of Victoria’s 10 million domestic and international tourists with the number of international cultural visitors estimated to be worth $2.5 billion by 2025.
Cultural visitors stay 25% longer and spend 20% more per trip than leisure and business visitors and as an industry generate 8% of employment in Victoria and contribute $23 billion to the state economy.
Gentrification refers to the shift in socioeconomic demographic of a suburb which occurs when residents with more money start to move into the area resulting in increased demand for property in the area leading to an increase in prices to buy and to rent. This often occurs in inner and middle ring suburbs where mixed commercial and industrial property often utilized for office or warehouse purposes is transitioned to new townhouse development. Suburbs in Melbourne currently undergoing gentrification with townhouse development include Coburg, Brunswick and Hadfield
Melbourne townhouses then make for a strong investment option. Townhouse developments website has all the information you need to make evaluate and compare options, we look forward to assisting you find a suitable property.