Last Friday I attended a conference on the ‘State of the Property Market’ in Melbourne Park with some leading figures in the Property and Planning sectors.
Today I’ll give an overview of one of the speakers followed by some further information tomorrow.
Enzo Raimondo who is the Chief Executive Officer for the Real Estate Institute of Victoria raised some excellent information:
- He spoke of the main driving factors that influence the property market: Interest Rates, Inflation, Employment, Consumer Confidence, Business Investment, Migration and Population growth.
- The total value of real estate transactions for Victoria in 2007 was $35,414,748,957
- Melbourne’s Median sale price for the December quarter 2007 was $485,000. Most expensive suburb was naturally Toorak with a Median of $2,775,000 while Carlton was the biggest mover for a year increasing its Median sale price by 64.3% to $868,750 from $528,750
- The highest growth was mainly experienced in Melbourne’s inner Eastern suburbs
- Melbourne added 272,775 new people to the city for the 5 year period ending 30th June 2008 representing a 1.5% increase in population. Melbourne attracted more people than any other capital city while Brisbane was the fastest growing city on percentage terms was a growth rate of 2.2%
- 36.2% of gross family income now required to service the average loan of $253,551 while renters require 20.6% of gross income to meet rent payments.
- Vacancy rate for Melbourne: Inner City (0-10km) 1.2% Middle (10-20km) 1.7% Outer (20+km) 2.2%
- Victorian demographics: The Baby Boomers (1946- 1965) population is 1,340,916, Generation X (1965-1977) population of 980,995 while Generation Y (1978- 1997) total population is 1,387,072. Property of tomorrow must cater for our different groups and their requirements.