THE REAL ESTATE INDUSTRY.

Running head: REAL ESTATE INDUSTRY
REAL ESTATE INDUSTRY
Name of the Student
Name of the University
Author Note

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Introduction
Victoria is the most populated state of Australia which falls in the south-east corner of
the largest Island country of the world. Its capital is Melbourne and which is considered as
the most developed and populous city of Victoria. Melbourne is a massive metropolitan area
comprising of thirty one municipalities. The most populous city of Victoria lies mostly on
along the coastline of Port Philip and lies between the Dandenong and the Yarra Valley. It
comprises of five million people which is nineteen per cent of Australia’s population roughly.
It was the part of the British colony- New South Wales since 30 August 1835. It has served as
a host to numerous sporting events like the Australian Open, Summer Olympics in 1956,
Melbourne cup, Australian Grand Prix, ICC Cricket World Cup and numerous matches of
bilateral and triangular series. Melbourne experienced an extensive growth post mid-1851
owing to discovery of gold in Victoria.
Melbourne served as major port of Victoria and by 1865 it surpassed Sydney in terms
of population owing to this gold rush. This Gold Rush era saw the construction of major
public buildings in Melbourne like the Old Melbourne Goal, the Parliament House, General
Post Office, Victoria Barracks, St. Patrick’s Cathedral, Customs House, University of
Melbourne, Treasury Building, Melbourne Town Hall and many more. Melbourne
experiences a temperate Oceanic type of climate where there is mild winter and warm
summers. This wonderful type of climatic condition along with numerous places of attraction
pulls a considerable volume of tourists every year. With the advent of massive number of
tourists every year, the demand for hotels, lounges, bars, restaurants and many more are
increasing day-by-day which can be considered as positive signs for the real estate industry in
Melbourne.

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Melbourne has a rich architectural history since ages and modern age is no exception.
The modern architecture were built between nineteenth and the early twentieth century. Some
of the architectural masterpieces that forms the part of Melbourne’s lush history are Royal
Exhibition Building which has also got its listing as a world heritage site, Neo Gothic
Building, Old Stock Exchange, the Parliament House, Flinders Street Station, St. Paul’s
Cathedral and many more. Melbourne is also known for its famous war memorial “Shrine of
Remembrance”, which was constructed in memory of the valiant men and women who lost
their lives in the World War 1. Melbourne which is considered to have the tallest skyline in
the entire country has an aggregate of seven hundred and fifty high rise buildings out of
which forty three are skyscrapers. Melbourne has the fourteenth highest residential building
in the world, The Eureka Tower as of 2014. Melbourne is characterized by lesser volume of
public housing provided by the Housing Commission of Victoria and there exists an ever
increasing demand for private rental properties and some of which are quite expensive. This
public housing is a part of the Common-Wealth State Housing Agreement.
Description
Real Estate in truest sense signifies a particular property encompassing a piece of land
with immovable property constructed on it. Real Estates are of four basic types namely,
residential, commercial, industrial and land mainly of vacant nature. Dealing in Real Estates
means construction of immovable properties on land or buying and selling of already
constructed properties. The market for Real Estate primarily depends on the market demand
properties which subsequently depends on numerous factors like the demographic structure
of the area, economy of the area and many more. Melbourne in recent years has been going
through a phase of rapid increase in population and this has resulted in increased demand for
houses in the most populous city in whole Australia. Melbourne has been the home for over
4.82 million population and which if tallied in national context, accounts for 19.05% of the

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total national population1. Melbourne is considered as the fastest growing city in the whole
Island country in terms of population with an annual increase of 2.4%. This annual increase
in population consists both natural increase as well as foreign migrations and this foreign
migration mainly creates an additional demand for houses in Melbourne. The following graph
depicts the annual growth in population over the years up to December, 2018.
(Population growth)
(Source:2)
Apart from the rapid increase in population, this increasing demand for Real Estate in
Melbourne is due to numerous factors. The important factors are as follows:
1 Realestate.Com.Au. "Melbourne Property Market, House Prices, Suburb Profile &
Investment Data". Realestate.Com.Au, 2020,
https://www.realestate.com.au/neighbourhoods/melbourne-3000-vic. Accessed 11 Mar 2020.
2 propertyupdate.com.au. "Property Investment In Melbourne - Suburbs Analysis & Expert
Advice". Property Update, 2020, https://propertyupdate.com.au/property-investment-
melbourne/. Accessed 11 Mar 2020.

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Layout of Melbourne: Melbourne is the most well decorated and planned city in the whole
island country. It has a wide range of public transport options to avail from. Melbourne is
segregated into east and west where the east side is considered more developed than the west.
West is relatively less populated and there is ample scope of getting newer properties at
affordable prices. All these features of Melbourne is pushing up the demand for Real Estate
in this biggest city of Victoria.
Infrastructure of Melbourne: Melbourne has the most advanced network of roads and
railways in the whole country enabling its daily commuters a wide variety of options of travel
to choose from. These facilities given to the residents pull more and more people in the
capital which results in increase of demand in the Real estate market of Melbourne.
Economy of Melbourne: Melbourne being the most advanced city in whole Victoria is
cosmopolitan in nature. Owing to this nature, it has a wide number of industries which
employs a massive workforce. This advent of numerous number of people from different
parts of the country as well as from abroad requires a considerable amount of houses to stay
and at the same time requires offices to work. This provides an upward pressure on the
demand for house as well as office properties in Melbourne which in turn increases the
demand for residential, commercial as well as industrial Real Estate properties3. The
economy of Melbourne is considered at the boom stage and which is expected to grow even
further in near future give positive signs for the Real Estate Industry of Melbourne.
3propertyupdate.com.au. "Property Investment In Melbourne - Suburbs Analysis & Expert
Advice". Property Update, 2020, https://propertyupdate.com.au/property-investment-
melbourne/. Accessed 11 Mar 2020.

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The following chart depicts the GSP, State final demand, annual employment, rate of
unemployment, population post 2017 up to present time. Here, the average has been taken
over the last 25 years.
(Economic growth)
(Source:4)
Real Estate investments had been a consistent performer in the Australian market over
the years. It has made a great start since the beginning of 2020 and which can be considered
as knocking at the doors of an all-time high in the Real Estate market especially in
Melbourne. According to Corelogic Inc., the biggest financial and property analyst, the unit
price of a house property in Victoria has risen to an all-time high of $681,925 which is about
8.2% rise. The Real Estate market in Victoria is the highest grossing in the whole country
leaving behind Sydney with 7.9% and Hobart with 5%. As per the Hedonic Home Value
Index, Victoria only needs an additional 1.2% rise in value to bring the housing market at
breakeven post the market downturn within the time range of 2017 to mid-2019. According
4 propertyupdate.com.au. "Property Investment In Melbourne - Suburbs Analysis & Expert
Advice". Property Update, 2020, https://propertyupdate.com.au/property-investment-
melbourne/. Accessed 11 Mar 2020.