Population Growth Drives Melbourne Prices

Melbourne’s property prices will continue to get a shot in the arm from lower interest rates and strong population growth this year, according to a market forecast by Upside.

The Victorian capital finished 2019 with a 6.1% quarterly gain in dwelling values. It is projected that Melbourne will continue to witness an uptrend this year, with houses posting a 1% to 3% increase and apartments recording a 2% growth.

“Melbourne property prices will be boosted by lower interest rates and strong population growth of about 2%,” Upside said.

The Reserve Bank of Australia is expected to lower the cash rate further to 0.5% next month, as the overall economy continues to underperform.

Melbourne’s unemployment rate is also poised to fall, boosting the overall appeal of the city to investors and homebuyers.

Furthermore, the slowdown in Melbourne’s new housing construction will remain supportive of price growth as demand intensifies.

Source: Your Investment Property