Why Melbourne Real Estate should be on your to do list in 2012

Melbourne is an economic powerhouse and indisputably one of the world's most liveable cities again voted such in 2011. It continuiously attracts premiere world events, it is a place of many levels, energy, sophistication and innovation. It is also a city of history and cultural diversity. Most importantly it is a city with excellent infrastructure in fact the past decade, Government investment in infrastructure has quadrupled,investment during 2008-2009 was estimated at $4 billion.

Victoria enjoys Australia’s most advanced and best connected system of road, rail and marine transport infrastructure.

Affordability

Melbourne Commercial Real estate is a highly competitive global business location in terms of cost and availabilty. A plentiful supply of industrial land accomadates all industrial sectors. Office space is also affordable, easily accessable and well serviced.

Melbourne is the most affordable city in Australia to lease an office according to the 2010 office space across the world report by global Real estate company Cushman and Wakefield, found that melbourne office rents in the CBD averaged $400.00 a sqm per annum.

Fast Facts

The CBD comprises:

74% of the City of Melbourne’s retail locations
57.5 per cent of the city’s office space
59 per cent of the City of Melbourne’s employment.

The Melbourne residential and investment property sector is performing well and is predicted to continue doing so. Here are some reasons why:

Historically Melbourne apartment prices have been approximately 20-25% more affordable than Sydney. However, the current price difference in inner city apartments is over 45%, meaning plenty of upside potential in Melbourne.
Melbourne home prices are rising from a lower base providing a higher proportionate gain.
Pent up demand: many leading economic forecasters believe there is an undersupply of new housing in Victoria.
High consumer confidence motivates people to make more long-term decisions such as purchasing a new home.
Improved immigration numbers: Melbourne's population is now increasing at a faster rate than many other capital cities, leading to an increase in the demand for housing. Population growth is around 4% per annum.

Facts on the residential market:

Close examination of Melbourne's median, reveals that Melbourne’s most expensive suburbs - which showed strong growth in 2007 - declined in value in the latter half of 2008. Conversely, many of Melbourne’s more affordable suburbs increased their median or remained stable over the same period. These suburbs have attracted many first home buyers fuelled by the federal government’s first home buyer boost and interest rates reductions which have improved affordability.
First home buyers see now is the time to afford a mortgage over premium rents.
Demand for rental properties continued to outstrip supply in 2008 pushing rents up and keeping vacancy rates at record lows.
Continued undersupply of new dwellings should ensure vacancy rates remain low and increases upward pressure on rents.

The fundamentals underlying the Melbourne property market are extremely robust and include:

The fact that Melbourne is currently one of the more affordable residential markets in Australia with a number of home buyer assistance packages in place from both State and Federal Government. Investors have opportunity to captilise on current supply constraints, infrastructure delivery, high immigration and low vacancy. In addition, securing funding for new development is still significantly more difficult to obtain than in previous years, further adding to the pressure on supply.
Rising rents, strong yields and low interest rates: the basics which fuel capital gains for investors.

Melbourne Is On The Move

RP Data-Rismark reports that Melbourne property values grew by 14.9 per cent in the year to October 2009: the strongest increase recorded in any metropolitan area in the country.

They further commented that this has been attributed to a number of things. The first homeowners grant, low interest rates and strong population growth as well as a continued shortfall in the number of new houses being built.

Melbourne’s population continues to grow with around 1700 people making the city their home each week.

Melbourne's strong population growth and the likelihood of an ongoing stock shortage are all good indicators for investors that prices will continue to rise.

The Residential Property Market Mispricing Is Rampant

With all the analysis available still every day there are hundreds of property transactions completed where either a buyer has overpaid or a seller has undersold.

Each year there are opportunities that go begging where whole markets have been overbought or oversold.

The reason this occurs and will continue to occur is that Information and advice is either inadequate, biased or both. In addition and probably more importantly residential property unlike commercial is primarily a domestic affair rather than a business/ commercial transaction. Properties are bought and sold often on emotion.

That is why successful property investing demands access to the right information, critical thinking, in-depth research and a fundamental understanding of the drivers of demand, supply and timing.

MPIC undertakes customised research for its clients; from regional market analysis to individual property assessments to ensure its clients make the right investing decisions, with the right information.

Mollard Property Investment Consultants will provide:

Specific location comparative analysis
Individual property analysis and research.
Market rental analysis
Provide underlying data and access to supporting information for self evaluation
Identify future potential areas of growth.
MPIC has the experience, knowledge and independence to ensure your property investing or development decisions are the right decisions.

If you want to make the right property investment decisions in Melbourne, get the right information and independent advice first from MPIC

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	Why Melbourne Real Estate should be on your to do list in 2012 Melbourne is an economic powerhouse and indisputably one of the world's most liveable cities again voted such in 2011. It continuiously attracts premiere world events, it is a place of many levels, energy, sophistication and innovation. It is also a city of history and cultural diversity. Most importantly it is a city with excellent infrastructure in fact the past decade, Government investment in infrastructure has quadrupled,investment during 2008-2009 was estimated at $4 billion. Victoria enjoys Australia’s most advanced and best connected system of road, rail and marine transport infrastructure. Affordability Melbourne Commercial Real estate is a highly competitive global business location in terms of cost and availabilty. A plentiful supply of industrial land accomadates all industrial sectors. Office space is also affordable, easily accessable and well serviced. Melbourne is the most affordable city in Australia to lease an office according to the 2010 office space across the world report by global Real estate company Cushman and Wakefield, found that melbourne office rents in the CBD averaged $400.00 a sqm per annum. Fast Facts The CBD comprises: 74% of the City of Melbourne’s retail locations 57.5 per cent of the city’s office space 59 per cent of the City of Melbourne’s employment. The Melbourne residential and investment property sector is performing well and is predicted to continue doing so. Here are some reasons why: Historically Melbourne apartment prices have been approximately 20-25% more affordable than Sydney. However, the current price difference in inner city apartments is over 45%, meaning plenty of upside potential in Melbourne. Melbourne home prices are rising from a lower base providing a higher proportionate gain. Pent up demand: many leading economic forecasters believe there is an undersupply of new housing in Victoria. High consumer confidence motivates people to make more long-term decisions such as purchasing a new home. Improved immigration numbers: Melbourne's population is now increasing at a faster rate than many other capital cities, leading to an increase in the demand for housing. Population growth is around 4% per annum. Facts on the residential market: Close examination of Melbourne's median, reveals that Melbourne’s most expensive suburbs - which showed strong growth in 2007 - declined in value in the latter half of 2008. Conversely, many of Melbourne’s more affordable suburbs increased their median or remained stable over the same period. These suburbs have attracted many first home buyers fuelled by the federal government’s first home buyer boost and interest rates reductions which have improved affordability. First home buyers see now is the time to afford a mortgage over premium rents. Demand for rental properties continued to outstrip supply in 2008 pushing rents up and keeping vacancy rates at record lows. Continued undersupply of new dwellings should ensure vacancy rates remain low and increases upward pressure on rents. The fundamentals underlying the Melbourne property market are extremely robust and include: The fact that Melbourne is currently one of the more affordable residential markets in Australia with a number of home buyer assistance packages in place from both State and Federal Government. Investors have opportunity to captilise on current supply constraints, infrastructure delivery, high immigration and low vacancy. In addition, securing funding for new development is still significantly more difficult to obtain than in previous years, further adding to the pressure on supply. Rising rents, strong yields and low interest rates: the basics which fuel capital gains for investors. Melbourne Is On The Move RP Data-Rismark reports that Melbourne property values grew by 14.9 per cent in the year to October 2009: the strongest increase recorded in any metropolitan area in the country. They further commented that this has been attributed to a number of things. The first homeowners grant, low interest rates and strong population growth as well as a continued shortfall in the number of new houses being built. Melbourne’s population continues to grow with around 1700 people making the city their home each week. Melbourne's strong population growth and the likelihood of an ongoing stock shortage are all good indicators for investors that prices will continue to rise. The Residential Property Market Mispricing Is Rampant With all the analysis available still every day there are hundreds of property transactions completed where either a buyer has overpaid or a seller has undersold. Each year there are opportunities that go begging where whole markets have been overbought or oversold. The reason this occurs and will continue to occur is that Information and advice is either inadequate, biased or both. In addition and probably more importantly residential property unlike commercial is primarily a domestic affair rather than a business/ commercial transaction. Properties are bought and sold often on emotion. That is why successful property investing demands access to the right information, critical thinking, in-depth research and a fundamental understanding of the drivers of demand, supply and timing. MPIC undertakes customised research for its clients; from regional market analysis to individual property assessments to ensure its clients make the right investing decisions, with the right information. Mollard Property Investment Consultants will provide: Specific location comparative analysis Individual property analysis and research. Market rental analysis Provide underlying data and access to supporting information for self evaluation Identify future potential areas of growth. MPIC has the experience, knowledge and independence to ensure your property investing or development decisions are the right decisions. If you want to make the right property investment decisions in Melbourne, get the right information and independent advice first from MPIC