Apr 27, 2020
What drives property price growth?
That’s what I’m going to discuss in today’s episode.
Then I’m going to have a chat with Kate Forbes about the surging population growth in Melbourne.
Melbourne is likely already Australia’s largest capital city.
That doesn’t mean you can invest just anywhere in Melbourne, but we’re going to give you some ideas of what to look for when you’re considering where you should be investing.
What drives property price growth?
Some people say that supply and demand drive price growth.
But in my mind, that’s too simplistic. There’s more to it than that.
Let’s take a look at the macro effects that drive the general property markets.
Is Melbourne already Australia’s biggest capital city?
The latest forecast suggests that Melbourne’s population is going to overtake Sydney’s sooner rather than later. But maybe this has already happened.
How is this possible?
There are different definitions of what the boundaries of the capital cities are. Some definitions include the Central Coast in the Sydney population count, but leave Geelong out of Melbourne’s population count.
Remove the Central Coast, and then Melbourne already has a higher population than Sydney.
Even with the given definitions, though, Melbourne is on the way to having more people than Sydney by 2026.
Why has Melbourne done so well? There are a few reasons:
Links and Resources:
Kate Forbes – National Director – Property Strategy at Metropole
Organize a time to speak with Kate Forbes or her team at Metropole by clicking here
Shownotes plus more here:
Some of our favourite quotes from the show:
“When fear or greed comes into the market, when investors come into the market, we get these big swings.” – Michael Yardney
“If you fast-forward four years, Melbourne’s population is going to increase about 10%” – Michael Yardney
“Buy the best property you can afford. No question about that.” – Michael Yardney
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