Wherever you live, you tend to believe (and will happily tell people) that it is undoubtedly the best place to live.
Really, it’s just human nature.
But when it comes to investing your hard-earned dollars into Commercial property … your decisions should be governed by something more than a warm and fuzzy feeling.
For the past four or five years, Victoria has led the nation in economic growth; and it is one of the few enjoying a net growth in migration from other states.
And you’ll also notice most of the various service sectors are currently outstripping the mining sector, as far as employment numbers are concerned.
As you will also appreciate, this employment growth needs to be accommodated somewhere. And that means tenants will soon be requiring more Office space.
Once again, Melbourne leads the other states with the lowest CBD vacancy rate of just 5.5% — heading towards 4.9% in January next year.
However, it will not be until 2014 that developers will begin bringing more space on to the market — when rentals will have increased sufficiently, to justify the cost of new construction.
Bottom Line: Over the past 10 years, the Office market in Melbourne has enjoyed solid and sustainable growth — without reaching the peaks and troughs you have witnessed in Brisbane and Perth.
As such, Melbourne has been able to comfortably weather the recent financial turmoil. And is now perfectly poised to capture some serious growth in both rentals and capital values, over the next 6 to 7 years.