Did you know that, according to the Australian Bureau of Statistics, over the last 10 years Melbourne’s population growth outran all other Australian capital cites, growing by 20% or 666,000 new residents? For every three new residents in Sydney, Melbourne added four and in the year to end June 2011 alone, welcomed almost 1300 new residents a week. Melbourne is Australia’s fastest growing capital city and it’s not hard to understand why. Today, Chisholm and Gamon blog explores why this love affair with Melbourne is set to be a long and happy one!

What is the appeal? What makes Melbourne so desirable and liveable?

Affordable housing and return on property investment to start. Melbourne has long maintained a solid reputation for affordable housing and consistent medium-long term capital growth. Despite a consistently robust property market, home ownership has still remained within reach and more so of late, courtesy of the current stabilising price cycle. According to the REIV, for the March 2012 quarter, median prices remained stable over the period and year to that point. The metropolitan Melbourne median house price was $535,000, a minor increase of 0.9% on the previous quarter median. With units/apartments, the median price dropped 1.1% to $445,000. In terms of investment, over the medium term, both types of dwellings have provided similar returns, with the median house price increasing 43.4% over the past five years and units/apartments increasing 39.1%.

Many Melbournians have chosen the more affordable north and west outer fringes of our city to reside, spurring the emergence of new suburbs. These suburbs have continued to expand through the attraction of a quieter family environment, affordable house and land packaging, the provision of new shopping amenities and improved access into the CBD.

For other Melbournians, inner city and bayside areas reign supreme.  The city’s cosmopolitan lifestyle allure teamed with solid capital property growth is hard to beat. Close proximity to quality education, restaurants, and cafes, diversity in shopping options and entertainment, multiple public transport choices all add appeal, not to mention the vast diversity in architecture. The popularity of the inner city is no more evident than in the numbers. For the quarter ended March 2012, three of five suburbs with clearance rates in excess of 80% were the inner city suburbs of Elsternwick, Fitzroy, North Melbourne. During February 2012, the overall auction clearance rate for houses in inner metropolitan Melbourne was just over 71%, compared to 62% in the outer east and almost 42% for Melbourne’s west.

Increasing interest in waterfront living has also maintained demand for bayside suburbs. Not surprising when considering the choice of multi million dollar luxurious mansions through to affordable family homes, a beach-oriented, outdoor lifestyle, shopping precincts with ‘village’ appeal and an engaged, proactive community proud of its environment.

Then there is everything else that characterises Melbourne in general – a relatively clean city, the melting pot of global cultures, excellent family amenities, ‘green’ spaces, thriving markets, amazing dining with a world influence, quaint lanes and ultra modern shopping centres, sporting events galore and easy access to wineries and snowfields. What more could anyone want for?