ACCORDING to consulting group SGS Economics and Planning … Australia’s economy grew by 38% during the 1990s; and by 34%, during the 2000s. However, it has only grown by just over 2% since then.
So let’s delve into the reasons behind this decline?
If you study the accompanying graph, you’ll notice that Sydney contributed around 27% of Australia’s GDP growth during the 1990s. But then that nearly halved to 14.5%, between 2000 and 2010.
By comparison, Melbourne’s contribution steadily grew to 18% of GDP over the same period; while Brisbane remained steady at around 11%.
Detailed analysis by SGS lays the blame for Sydney’s decline upon the poor transport links into the CBD — simply making it unattractive for workers to travel in there for employment. As such, growth in Sydney’s core is slowly becoming suffocated.
On the other hand, SGS’ Terry Rawnsley praised Melbourne’s transformation since the early 1990s recession:
It went from a rust belt to a renaissance between the early ’90s and what we see today.
And this is what has made the Melbourne market so attractive to both overseas and interstate buyers, over the past 4 or 5 years.
Bottom Line: Melbourne’s GDP has grown consistently over the past two decades. And while it may not reach some of the heady peaks found in other capital cities … nor does it sink to their tragic low points.
Perhaps that’s the reason why the shrewd investors are now gravitating towards Commercial property in Melbourne.
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