Population growth to help Melbourne housing market from mid-2012: ANZ

The recent pick-up in net arrivals in Victoria should boost population growth and drive rental vacancies lower from mid-2012, according to ANZ’s recent housing snapshot. 

“With ongoing pressure from yield-seeking investors to increase rents and moderate house price falls making housing purchase affordability easier, housing finance to the first home buyer segment should begin to gain momentum. This will be fuelled by the added stimulus of first home buyer stamp duty concessions that have been rolled out from 1 July 2011,” the report says. 

The report notes that Victoria’s housing market has performed well compared with other states and territories. 

“With annual population growth moderating from 102,000 in March 2010 to 82,000 in March 2011 and the recent strength of Victoria’s construction cycle only recently beginning to wane, underlying tightness in Victoria’s housing market is expected to continue to ease through 2011-12,” it says.

Source: ANZ