Why Victoria is the Best Place to Invest in Property Right Now
Victoria is emerging as one of the most promising regions for property investment in Australia. With its dynamic population growth, significant infrastructure spending, and unmatched affordability, Victoria offers a unique combination of factors that make it an ideal destination for savvy investors. Here’s why you should consider investing in Victoria, today.
1. Population Growth: A Future Boom in Demand
Victoria is experiencing robust population growth, ranking second in Australia. Melbourne, in particular, is a magnet for overseas migrants, a trend that is expected to have a long-term impact on the property market. Although these new residents typically take 2-3 years to enter the housing market, we anticipate that by 2025-2026, this influx will begin to filter through, driving demand for properties. In the meantime, this growing population will continue to bolster the rental market, making it an excellent time to invest in rental properties in Melbourne.
2. Unmatched Infrastructure Spending
Victoria leads the nation in infrastructure spending, dedicating 20% of its budget to major projects. This level of investment is not only the highest percentage in Australia but also ranks second in overall dollar value. For comparison, Western Australia, which has 45% of Victoria’s population, is only spending 8% of Victoria’s total infrastructure budget. This significant expenditure on infrastructure—from transport to utilities—will enhance the state’s liveability and drive property values higher over time.
3. Long-Term Capital Growth: A Proven Track Record
Victoria boasts the best long-term capital growth in Australia over the past 30 years. This track record of sustained growth is a testament to the strength and resilience of the Victorian property market. Whether you’re looking at residential or commercial properties, investing in Victoria means you’re investing in a region with a history of delivering solid returns.
4. A World-Class Economy and Liveability
Melbourne, the capital of Victoria, was recently ranked as the ninth-best city in the world out of 1,000 cities globally. This ranking reflects Melbourne’s strengths in several key areas, including human capital, economic performance, and environmental quality. The city’s top-notch universities, fast-growing economy, and high life expectancy make it an attractive destination for immigrants and foreign workers. Additionally, Melbourne’s reputation as Australia’s most livable city, now combined with increasing affordability, solidifies its status as a prime investment location.
5. Rental Affordability: The Best in the Country
Melbourne is now the most affordable capital city in Australia for renters, with only 27.5% of income required to service rent. This affordability, coupled with Melbourne’s top ranking in retail spending, makes it a city where residents have more disposable income, which in turn fuels the local economy. For investors, this affordability suggests a stable and growing rental market, with opportunities for steady rental income.
6. Purchase Affordability: The Next Best Thing
When it comes to purchasing property, Melbourne ranks second in affordability among Australia’s major capital cities, just behind Perth. However, recent price movements in Perth indicate that Melbourne may soon become the most affordable major capital city to purchase property in. This potential shift presents a unique opportunity for investors to buy into the market before prices climb, ensuring strong future capital gains.
7. Rapid Rental Growth: A Lucrative Opportunity
Despite the increasing affordability of purchasing property, rental prices in Melbourne have seen unprecedented growth, offering yields of 4-5%, compared to the pre-COVID norm of 3-3.5%. With more people choosing to rent rather than buy, this trend is likely to continue, providing investors with the opportunity for higher returns on rental properties.
8. Liveability: A Global Leader
Melbourne ranks fourth in the world for liveability, according to the Global Liveability Index by the Economist Intelligence Unit. This ranking highlights the city’s exceptional quality of life, with top marks for stability, healthcare, culture, environment, education, and infrastructure. Investing in a city with such high liveability ensures that demand for properties, both for purchase and rent, will remain strong.
Invest In Victoria with AllianceCorp Property Experts Now
Victoria, and Melbourne in particular, presents an outstanding opportunity for property investment. With its strong population growth, unmatched infrastructure spending, proven long-term capital growth, and increasing affordability, there has never been a better time to invest.
Ready to invest in Victoria? Contact AllianceCorp today to book your free consultation and learn more about how you can take advantage of these incredible opportunities. Our team of experts is here to guide you every step of the way.