| Abdul Hakiim Yakof |
THE Inspire Living magazine and SLP International of Singapore yesterday launched two designer properties based in Australia – the Ikebana Melbourne and Future Valley Brisbane – during an Australian Property Forum that took place at The Empire Hotel & Country Club.
Despite some concern over the upcoming supply of apartments in the Melbourne market, SLP International feels that the supply will soon be met, as demand for inner city apartments in the popular Australian city continues to show strong growth. Accordingly, SLP International is expecting overseas investment into Australia to experience a boom in the coming year, particularly in the Brisbane and Melbourne markets.
Figures from the Australia Bureau of Statistics indicate that growth in the inner sections of Melbourne have been robust in recent years, totalling 568,400 people in 2013. The fastest-growing population was concentrated in Melbourne City at 23 per cent followed by Abbotsford at 20 per cent, Southbank and the Docklands at 15 per cent. These suburbs are all located within a five kilometre radius from the city centre.
Marketing Manager of SLP International, Jooann Tay, said the growing number of ‘Gen Ys’ (Generation Ys) are the primary driver of population growth in inner Melbourne.
“Gen Ys, loosely termed as those born between 1980 and 1995, often want to live, work and play all in one location. There’s nothing better than living in or near the city.
“Once upon a time, investors were told to stay out of Melbourne city properties. Today, the game has changed,” she said.
Melbourne city properties are often held for its strong rental cash flow and demand, as it is home to many working professionals, international and domestic students at RMIT and the University of Melbourne. The suburb is also predominantly occupied (64 per cent) by independent youth aged between 20 and 35, and the CBD population is set to double by 2036.
“Gen Y is an important demographic group that investors should not neglect. They are buying property earlier than other generations and are driven by the mindset of homeownership.”
The annual realestate.com.au Housing Affordability Sentiment Index survey for 2014 indicates that a shocking 89 per cent of Gen Y property owners bought their first home before the age of 30, with a minority nine per cent buying their fist property before the age of 20. Most of them are also receiving help from their parents when it comes to buying their first home.
“Property investors should start to think about where Gen Ys want to live, work and play, as they will be your potential buyers and tenants in time to come.”
As such, SLP International is expecting higher-than average growth rates in Melbourne city’s fringe suburbs such as Richmond, West Melbourne and North Melbourne.
Inspire Living will hold another Australia Property Forum in the V Plaza Hotel in Kuala Belait today.
Interested parties can contact Chris at 7187128 for more information.