In our view, Victoria is a leader in Australia when it comes to success of transforming the state economy from one of manufacturing to a knowledge based economy. VIC has been growing its job pool by an average of 4.91%, which is a tremendous amount by any means.
As we have mentioned in a number of previous articles, we think Victoria has impressed us. The state continues to outperform on a wide variety of metrics. That coupled with significant population growth, we believe Victoria should unveil excellent opportunities for property investors in Australia.
Let us not forget that not that long ago, we were hearing only doom and gloom about Victorian property market. A state that is too reliant on manufacturing and which is bleeding jobs they said. Victoria managed to sail through closure of car manufacturing industry fairly unscathed.
Despite Melborune property market falling over 9% as at 25th of February according to Corelogic, we think it is a solid market for long term players. Melbourne property market remains affected by lending restrictions and macro prudential policy. While affordability in Melbourne remains an issue the city is much more affordable than Sydney. This relative affordability along with sustained economic growth and above average population growth are likely to boost property market in Melbourne.
We are still expecting some pain for Melbourne housing in 2019. The slowdown in property market is likely to continue for the next few months and we are expecting the market to flat line towards the end of 2019. In absence of any shocks or federal government policy changes we expect Melbourne to be “business as usual”.