Interstate raiders buying up Melbourne properties
Homebuyers already grappling with Melbourne’s surging property prices face a new threat – interstate raiders.
Victoria’s property market is being spurred on by surging population growth, with new figures showing Melbourne is estimated to be growing at more than 1500 people a week, putting pressure on housing supply and affordability.
But the city’s scarce housing is being spruiked to cashed-up investors in Perth benefiting from the mining boom.
One agent, MLG Realty, will hold a buyers information seminar on Melbourne property this Thursday.
”We are getting a lot better response to our Victorian property than what we do for Western Australian projects at the moment,” Jeremy Gilmore from MLG said. ”There is a lot more confidence in Victoria.”
The company said it was also seeing strong demand for property from investors in Singapore and Malaysia.
Up to 20 per cent of sales in the $127 million development were to West Australian buyers, investment consultant Doug Shannon said.
Mr Shannon said Perth buyers favoured Melbourne over other Australian capital cities because it was more familiar. ”People like Melbourne over here. They understand the footy. There’s a few more similarities and there’s a bit more appeal generally.”
Melbourne overtook Sydney as the least affordable Australian capital city midway through last year, according to the Housing Industry Association affordability index that tracks the relationship between household income and mortgage costs.
This follows a new study showing only three of every 10 blocks for sale in new estates across Australia were accessible to average-income, first-home buyers at the end of last year.
One of Australia’s largest builders, Central Equity, recently finished a roadshow in Perth selling Melbourne CBD apartments in Southbank developments and house-and-land packages in Point Cook, Mernda and Mount Martha.
The expo told potential buyers they could buy, lease and manage property while living in Western Australia.
Joe Lenzo from the Property Council of Australia’s Western Australian division said the flat market in Perth was lifting demand in Melbourne.
”We had that incredible increase of price of real estate 2½ years ago and now the market is as flat as anything here,” he said.
Urban Development Institute of Australia executive director Tony De Domenico said at a recent conference in Adelaide that there was a lot of interest in Victoria from ”cashed-up workers” from Perth and Queensland.
Despite pressure on housing affordability from rapid population growth, Premier Ted Baillieu said he was not about to close Victoria’s borders.
He said he would never ”put up the stop sign” to curb population growth, but warned Victorians will have to ”endure” the problems of a growth rate that saw Melbourne increase by more than 1500 people a week last financial year.
”You’d like to think, in government, that you could invest for the future. We’ll be investing to catch [up] because the previous Labor government allowed Victoria to fall behind,” he said.
Source: Sydney Morning Herald
AREAP comment: This could be an advertorial and recommend that readers conduct their own research to confirm claimed statistics