You might have plans of moving to Melbourne or know someone who is eager to buy a home there because it is considered a very liveable city. In the recent years, however, the spike in home prices leaves people wondering if the cost is still worth it.
On Considering Middle-Class Incomes
Following a prosperous economical standing and a strong population growth, the demand for homes in Melbourne saw a huge increase in land prices. In 2016, there were around 22,700 lots released in Melbourne’s Greenfield market, breaking records with a 14.5% increase from the previous year.
To combat the price hikes, both the local government and the development industry worked to maintain the affordability of lands for sale in Melbourne. During the ninth annual State of the Land Report at the 2017 National Congress, the two sectors decided on a reduction of lot sizes to give more people opportunities to purchase homes. Without the reduction, remarked the Urban Development Institute of Australia (UDIA), the median lot price would have still been as high as $248,000, which is a prohibitive amount for many middle-class families.
Living Standards in Melbourne
The growing demand for homes comes as no surprise. Besides being dubbed the “New York of Australia”, there is more to Melbourne than its comparisons to the Big Apple. Having won the title of the most liveable city in the world three years in a row, the city definitely has its unique charms going for it.
In the city, public health care and schooling are extremely accessible. Numbeo also gives Melbourne positive ratings in terms of purchasing power, the traffic and commute, as well as the safety index of the city. Furthermore, the city was recently commended for its abundant greenery and excellent sustainability solutions. These may not have been the biggest factors for the high demand for homes but they are undeniably attractive qualities that may urge potential homeowners to flock there.
No matter the costs, the future continues to be bright for Melbourne.