Colliers International expects population growth, developer demand to continue
Melbourne’s population growth is underpinning strong demand for residential development sites as it continues to soar.
For the tenth year in a row, the population of Greater Melbourne has been confirmed as the fastest-growing in the country. The population grew by 91,593 people in the year ending June 2015, and over the ten years to June 2015, has grown by 832,124.
Not surprisingly, over that same time, Greater Melbourne has also recorded the best year-on-year growth in residential property prices of all Australia. Property prices have grown by an average of 7% per annum in the 10 years to June 2015.
“Melbourne’s population growth story is not just a temporary statistical blip,” Anneke Thompson, Colliers International Associate Director of Research, said.
“For 10 years now, our population has been growing by an average of 83,000 people per annum – and for the last three years these growth levels have been much higher than this average."
Trent Hobart, Colliers International Director of Residential Development Site Sales, nominates population growth as the number one reason why residential development sites remain in strong demand in Melbourne.
“Melbourne has long been recognised as a great place to live and work,” he said. “Our underlying economy is diverse and very steady compared to other cities and job opportunities are diverse, as well as the ease of doing business in the most affordable commercial city on the eastern seaboard, have all contributed to this growth. Melbourne also has a long tradition of Asian migration, going back to the 1850s, and overseas migrants are quickly able to feel at home in our great city.
“We don’t see any of these factors that contribute to our population growth changing in the near future.
“And this is the reason why developers are increasingly confident when securing sites that the underlying demand in Melbourne will continue looking forward.”