Why buyers are snapping up bargains in Melbourne prior to the 1st of July.
With development and building costs set to soar due to new tax and stamp duty regulations in Melbourne to be introduced on the 1st of July, investors who have been thinking of buying in Melbourne in the next 6 to 12 months are flooding boutique type apartment projects just outside the CBD and saving up to AUD $55,000, in taxes and stamp duties.
Rents and prices are likely to rise as supply is predicted by real estate analysts to dramatically drop.
Melbourne is already in the beginning of a rental crisis with rental vacancy rates at just 1.8% the lowest seen for nearly a decade, and is the lowest of all the major cities in Australia including Sydney.
The “Full House” sign for rental apartments especially just outside the CBD is now very noticeable.
In addition, new Government policies to limit future “super towers,” impose strict height restrictions, and improve apartment design in “The World’s Most Liveable City” is also expected to restrict further supply, improve apartment and building quality, and push prices up.
Melbourne has an extremely low per square metre rate for new build apartments at under $10,000, and has huge population growth.
Annual population data released in March 2017 for Australia’s capital cities revealed that Melbourne’s population grew by an incredible 108,000 people in the 2015-16 financial year, with the city adding a whopping one million people, (a 27% increase) in the 12 years to 2016!
Further, the Victorian Government’s own population projections have Melbourne’s population growing by 97,000 people per annum over the next 30 years to more than 8 million by 2051.
Simply put, apartment supply is unlikely to be able to keep up with this demand.
For those wishing to enjoy this unprecedented opportunity, the Award Winning Estate Agents, Citylife International have a limited selection of researched Melbourne apartments available that qualify for the saving and are approved for foreign investment.
For more details of the changes coming that will affect Melbourne, go here