State of Markets - VIC December 2012

VICTORIA

Melbourne yet to bottom
A survey by the Australian Property Institute has revealed that Melbourne’s property market is yet to hit the bottom of the cycle.

The Australian Property Directions survey found that recovery of the Melbourne market is not expected until 2014 when real estate markets across the nation are expected to see growth.

Over the next two years, Sydney and Brisbane residential property is seen to be advancing from the bottom of the cycle at a faster pace than in Melbourne, with sluggish growth expected.

Similarly to the September 2011 survey, all classes of property in all cities were seen as making “only small forward progress” on the upswing of the cycle over the next two years.

The survey included a number of industry respondents, such as the four major banks.

$1 billion spent on growth corridor
A $1 billion housing development has been opened as one of the largest infill projects undertaken in Melbourne’s growing south east corridor.

The 120 hectare transformation has turned under-utilised land in Keysborough into ‘Somerfield’, a new neighbourhood that will house 7,000 residents in 2,000 homes.

Planning minister Matthew Guy explained that this is part of a number of initiatives to “increase the supply of housing, to maximise land use to boost jobs, drive investment and provide housing choices to suit a range of budgets”.

The new community is close to Greater Dangenong’s revitalisation as a population and business hub, as well as a focus for infrastructure injections.

“Thousands of construction jobs have already been created from the existing 500 homes built, and thousands more jobs will be generated by the project,” he said.

“The local community will have access to great transport connections with the EastLink freeway and soon to be completed Dingley Arterial,” he said, pointing to jobs in Dandenong and surrounding employment areas as those that will benefit from “flow-on spending” from the new residents.