Increased approvals for apartments in Melbourne good for state growth
Now could be the perfect time to consider purchasing investment property in Melbourne, after Minister for Planning Matthew Guy approved a record number of apartments in a single day. Dubbed Super Tuesday (February 25), Mr Guy fast tracked the approvals of five major high density housing developments in the Victorian capital city. This could be a great idea, highlighting the increasing popularity of these property types in metropolitan areas.
"The Australian dream of owning your own dwelling is still possible. With the release of these five towers in Melbourne, new home buyers and others can once again have confidence that the state government is aggressively tackling the housing affordability issue in outer as well as inner city markets," said Mr Guy in a February 25 statement.
"Demand in Melbourne's high-rise, high-density market is strong with recent surveys showing Melbourne now having more apartments being sold than Surfers Paradise. The state government is driving new jobs and investment into Melbourne with these 'Super Tuesday' permits."
There are a number of benefits to these developments going ahead in the region. For example, there will be more than 2,000 new apartments across these buildings, which could be a great opportunity for those interested in purchasing property in the near future.
Furthermore, over 4,000 new construction jobs will be created during the building of these properties. The overall value of these new developments totals $557 million, boosting the local economy and helping Melbourne to continue prospering well into the coming years.
Mr Guy said the people of Melbourne made it clear they wanted to keep high density buildings out of the suburbs, which has resulted in these properties being developed in the city's central business district and dockland regions.
"The state government has an unashamedly pro-Victoria and pro-Melbourne attitude to the construction sector. We are aggressively promoting central city growth. Victoria accommodates 25 per cent of Australia's population but we are punching above our weight by accounting for more than 27 per cent of national dwelling approvals over the last year," said Mr Guy.
Chris Johnson, chief executive officer for Urban Taskforce, said this demonstration of leadership from Mr Guy could be great for inspiring other planning ministers to follow suit in order to stimulate housing supply across the nation.
"The boom in apartment high-rise is partly supported by a growing interest in rental properties as many purchasers are investors. There does seem to be a swing towards rental accommodation in cities as younger people put off home ownership to give themselves more flexibility in where they live," said Mr Johnson in a February 25 statement.