The property market in Melbourne is quickly becoming the most lucrative in the country. In a recent study conducted by CoreLogic from October 2015 – October 2016, rising housing prices in Melbourne are potentially making owners more money per day than would be achieved in a week of full time work.
The Australian national minimum wage for a full-time weeks work is $672.70, whilst properties in and adjacent to sought after postcodes are experiencing gains well above this rate on a daily basis. Of the 10 suburbs that achieve average daily gains of above $600, 6 achieve above the weekly national minimum wage figure on a daily basis. These figures are for the value of the property alone, not including the increased income if they are used for investment purposes.
Top of the list is Hawthorn averaging an increase of $1096 per day in increased value, followed by Abbotsford with an average increase of $827 per day. There were another 145 suburbs with growths of at least $200 per day.
Advantage Property Consulting director Frank Valentic attributes the rise in values to the growing population and popularity of Melbourne and limited housing supply; “Melbourne continues to be the most liveable city in the world…Population growth is the highest in the nation with 100,000 people moving here each year….We are an international city and this is obviously driving population growth as well and we’re unfortunately getting less and less homes to choose from.”