Victoria dubbed a population hotspot
Victoria-based homeowners and investors would be wise to hold onto their properties, given recent findings from the Housing Industry Association (HIA).
Those with mortgages and investment loans will no doubt want security that their valuable assets will increase in value over time. Owning real estate in Melbourne, or upgrading to a new home, could prove to be incredibly worthwhile if the latest Population and Residential Building Hotspots report from the HIA is anything to go by.
What's a hotspot?
A hotspot is a "local area where population growth exceeds the national rate (which was 1.8 per cent in the year to June 2013) and where the value of residential building work approved is in excess of $100 million", according to a July 7 statement from the HIA.
The ACT saw three of its suburbs make the HIA's hotspot list - securing the top three place - but it was Victoria that truly held its weight.
Victoria had the biggest representation on the list, holding eight of the country's top 20 hotspots in 2012/13.
Of this, four were in the top 10, explained Gilbert King, executive director for the HIA.
Where should I buy in Victoria?
Homeowners contemplating a mortgage refinance in order to upgrade have a range of hot Melbourne and Victorian suburbs to choose from.
"The inner city statistical area of Melbourne was the hottest of Victoria's hotspots with over $385 million of new residential building work approved and the population growing at a rate of 22.7 per cent. Given that the population within this area was already quite large, a growth rate of 22.7 percent is an impressive result," Mr King noted.
However, other areas are also proving themselves, with outer suburban growth areas such as Epping, Cranbourne East, Truganina, South Morang and Point Cook all making the hotspot list.
With population growth booming in these areas, strong demand for housing may see favourable price rises for property owners.
Image credit: Jes