By Ashley Osborne | Head of UK Residential & Managing Director – International Properties
Australia’s property market is quickly rising in ranks as one of the most lucrative investments in due to its recent surge in economic growth along with a steady increase in population. This, in turn, has spurred multiple unit development projects across the country as immigrants continue to flock metropolitan cities for better education, job opportunities, and standard of living.
Property prices saw the highest year-on-year increase since 2010 at the end of 2015 at 11.4% in Australia’s eight major cities, with Sydney and Melbourne leading the way followed by Brisbane and Adelaide. A recent report indicates that the rising prices in Sydney and Melbourne are beginning to spread to other cities, resulting in a foreseeable growth in their property prices as well.
In addition, a number of economic factors indicate that the Australian property market is predicted to stay strong:
- Australia has consistently been yielding above average returns on investment with an annual growth rate of 7% per annum in the last 40 years.
- A strong future demand for property is expected with the increasing population and diminishing supply of housing.
- Australian property investment is seen as low risk – a great incentive for those looking to grow their investment portfolio.
We combine this with some of the major infrastructures in development listed below to showcase why Australia’s top cities property market is looking to withhold its strong status in the coming years.
- North West Rail Link (2019) – Set to benefit Castle Hill and Cherrybrook areas with estimated 19,000 new jobs and 12,000 residential properties to be created across the line.
- WestConnex (2019) – The 33km motorway will link Western Sydney to the airport and Port Botany. Mostly built underground, the quitter roads above mean more opportunities for urban renewal such as cafes, restaurants, and residential developments. It is expected to generate 25,000 new homes and 25,000 new jobs over the next two decades.
- There is a $7 billion plan to boost housing supply by transforming the new Arden metro station area into a city centre-style living space to accommodate 15,000 residents and 34,000 jobs in the next 30 years in proximity to workplaces and services.
- Melbourne Metro Rail Project (mid 2020s) – The $10.9 billion project aims to increase train efficiency in and out of the city to cater to Melbourne’s growing population. With better train connections to the central business district, properties along these new stations will be in high demand.
- Cross River Rail (mid 2020s) – A new transport infrastructure to drive new development and population growth, better access to jobs, schools, and higher property values.
- Airport Rail Link (2020) – The $2.2 billion project will connect Eastern suburbs with the airport as well as the Perth central business district in 20 minutes – inducing demand for property along the stations.
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