Melbourne’s property market has been typified by strong population growth, with almost 90,000 people moving into the city every year.
To keep up with surging housing demand, there have been a huge number of new developments – mostly in the form of high-rise apartment buildings, in and around the CBD – that have been approved.
But this is leading us to a city over-supplied with too many new inner city apartments.
With such a large number of development projects either completed, begun or approved in recent years, the risk for property investors is that there will be an oversupply of properties in and around Melbourne’s CBD.
This oversupply will result in minimal capital growth and sluggish rental growth on your investment – so avoid Melbourne CBD properties.