There’s close to 100,000 reasons why Melbourne had the strongest performing property market over the last quarter.
CoreLogic confirmed Melbourne’s property market streaked away from the rest of the country over the September quarter (+7.4% over the quarter), proving Australia’s most liveable city also boasts its strongest real estate market.
In fact it’s been the strongest performing property market over the last decade, and a lot of this has to do with our population growth, which in turn is due to our jobs growth.
It’s all about people
While Victoria’s population growth held up, Australia’s overall population grew more slowly last year, reflecting our slowing economy and fewer migrants coming to our shores since the mining boom went off the boil a couple of years ago.
At the same time the moves within the country, from one state to another, highlight that people move to where the jobs are.
Since the start of 2014, Victoria has had the highest population growth of any state – something that has not occurred in the past 35 years.
They’re not coming because of the weather!
It’s the jobs that are attracting them:
Victoria’s population growth is mainly being driven by strong interstate migration.
The following graphic from The Guardian compares the net interstate migration of Victoria and Western Australia.
This really tells the story of how the Australian economy has changed from being driven by the mining sector in the past to the services sector today.
As you can see more people were moving to WA than leaving it from 2003 onwards, and conversely, more were leaving Victoria than moving to it.
Again the reason was job opportunities and, for the first time in over a decade, the jobs growth is leading people to Victoria.
This influx has meant that, since 2013 and for the first time this century, Victoria’s population has grown faster than the national average:
The bottom line:
The influx of people into Melbourne, together with jobs growth and a strong services sector has underpinned its strong housing prices.
But as always, there is not one property market in Melbourne – it is very fragmented by geographic regions, price point and property type.
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Source of the interactive graphics: The Guardian