Melbourne could be the largest Australian city by 2030 simply because Sydney still cannot offer affordable housing the way Melbourne’s city fringes can.
Melbourne’s population will reach 5 million by 2021 and because of the growing population in the city’s West about 40 km from the CBD, its population may surpass Sydney’s in the next 20 years.
Melbourne has planned for this population growth from the Kennett years and it could ultimately lead to the 5 million resident goal in 2030.
Sydney has 350,000 residents more than Melbourne but the lead narrows at about 20,000 per year. If this will continue, Melbourne could replace Sydney as the country’s largest city in the 2030s.
Melbourne’s population may significantly grow but properties may not increase in value equally.
Strong population growth does not always translate to capital growth. The population growth in the city fringes of Melbourne may even lead to transportation and infrastructure problems with properties in the middle and inner ring suburbs close to transport becoming more appealing.
Melbourne could also have problems over leaky buildings with the rise in litigation over the past year.
Problems are often found in leaky balconies, planter boxes or common properties. Leaky building claims can be very expensive because water damage and penetration can be destructive. It appears that most claims come from multi-unit apartment blocks.
These leaky building claims are something we should carefully watch especially because of its potential to grow toxic mould. New Zealand has experienced the leaky building syndrome in the last 20 years, culminating billions of dollars worth of damage to buildings and about 42,000 dwellings in the country.
For more information about property investment in Australia, contact a Specialist to discuss your particular circumstances.
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