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What makes property valuations in Melbourne unique

Each Property valuation Melbourne has some unique aspects compared to other major Australian cities. With a population of over 5 million, Melbourne is Australia’s fastest growing capital city. This rapid expansion leads to frequent changes in property values across different suburbs and housing markets. Understanding the key factors that affect Melbourne property valuations can help homeowners and investors make informed decisions.

Booming population drives demand for housing

Melbourne’s population grew by over 140,000 people in 2021 alone. This rapid influx of new residents puts pressure on the housing market. As demand rises faster than supply in many areas, property prices surge. However, population growth is not evenly distributed. Outer suburbs like Pakenham and Epping have seen much larger booms than inner urban areas. Knowing which areas are growing fastest helps determine where property prices are likely to increase most.

Proximity to CBD impacts valuations

In general, properties closer to Melbourne’s Central Business District (CBD) have higher valuations and see stronger growth. Easy access to jobs, entertainment and public transport make these locations highly desirable. Proximity is especially important for units and apartments. Valuations usually decline sharply 10-20km outside the CBD as density decreases. However, outer suburbs with new infrastructure like rail links may outperform their neighbours.

School catchment zones influence prices

Melbourne families often pay a premium for homes near top schools. Properties within a school’s catchment zone tend to have higher valuations. This is especially true for private schools and highly ranked public schools. Savvy investors look for suburbs where a new school has been announced for potential growth. Changing catchment boundaries can also impact local property prices.

Development projects alter valuations

Major infrastructure and development projects influence property valuations years before completion. Areas with new freeways, rail lines, hospitals and other amenities often see rising valuations well in advance. For example, suburbs along the new Melbourne Metro tunnel have experienced a ripple effect. Investors also watch for urban renewal projects and changes to zoning regulations allowing higher density.

Renovations can increase valuations

Melbourne’s housing stock includes many older properties that can benefit significantly from renovations. Valuations consider the size, condition and functionality of dwellings. Adding an extension, updating the kitchen or bathroom or installing new flooring can drive valuations higher. However, not all renovations deliver value. Over-capitalizing on upgrades is a risk, especially in weaker locations.

The combination of strong population growth and limited housing supply will likely continue to make Melbourne a strong market for property investment. However, finding suburbs with characteristics for growth requires analysis beyond just median prices. Understanding the underlying factors that make specific locations unique enables smart investing and valuations.