Melbourne, Australia's second-largest city, has consistently demonstrated resilience in its property market. To forecast the 2025-2035 landscape, we'll analyse existing trends, economic indicators and demographic shifts
Economic Drivers
Infrastructure Development: Continued investment in transportation (Suburban Rail Loop, Melbourne Airport Rail) and urban renewal projects (Docklands, Fishermans Bend) will boost local economies.
Innovation Hubs: Melbourne's growing tech sector, fueled by initiatives like the Melbourne Innovation District, attracts businesses, talent and investment.
Population Growth: Expected 1.8% annual growth rate (2020-2030) drives housing demand.
Market Dynamics
Sustainability Focus: Green buildings, energy efficiency and eco-friendly features become increasingly desirable.
Urbanization: Inner-city living remains attractive, driven by lifestyle preferences and convenience.
Affordability: Outer suburbs and regional areas gain appeal as first-home buyers seek value.
Demographic Insights
Ageing Population: Downsizing demand rises, favoring compact, urban dwellings.
Migration: Melbourne's cultural diversity attracts international students, professionals and families.
Household Structure: Shifts toward single-person households influence apartment demand.
Regulatory Environment
Planning Policies: Strategic planning (Plan Melbourne 2017-2050) prioritizes density, transport links and community facilities.
Taxation Reform: Potential adjustments to stamp duty, capital gains tax and negative gearing impact investor sentiment.
Time for some predictions, our modelling indicates regional areas may do better
Limitations of this exercise:
Unforeseen economic shocks.
Regulatory changes.
Global events impacting local markets.
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