In 2015, credible organizations and consultants predicted a surplus 15,000 Melbourne apartments in 2018.

New Urban Development Institute of Australia (UDIA) data indicates that, despite record housing development, in the past two years Victoria has fallen short by 9,000 new properties. On current trends, it will be 50,000 by 2020. The driver is faster-than-expected population growth — the past 12 months saw 109,000 international and interstate arrivals in Melbourne.

Despite what appears to be a new development on every inner Melbourne corner, more must be done. Jago Dodson, director of RMIT's Centre for Urban Research, believes the challenge is not just about quantity but also, location. “We're facing some real difficulties with … continued fringe area expansion because, although people are buying new houses in those growth areas, we're not seeing the jobs following them." People have an ongoing desire to live near good infrastructure, schools, amenities and smashed avocado — needs frequently best met via properties 10-15 kms from the CBD.

With Melbourne's population expected to grow by 100,000 every year the government reacted with new zoning laws in March aimed at encouraging greater density in the city's middle-ring suburbs. These changes will significantly add to the overall housing supply in well sort after metropolitan locations boasting well established amenities and excellent infrastructure. Changes to zoning rules and potential alterations to much loved streetscapes are often unpopular with locals, but they’ve helped keep prices strong.

As we head into the popular spring selling season, the ongoing attraction of the world’s most livable city and the iron laws of supply and demand continue to bode well for the Melbourne metropolitan property market including the highly sought after premium inner eastern and inner bayside suburbs.


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