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There could soon be even for more competition for houses for sale in Melbourne and the rest of Victoria, as data shows the population has increased at a rapid rate. The latest figures from the Australian Bureau of Statistics (ABS) show that net interstate migration as reached its highest point in over 40 years. This is unsurprising given the popularity of the state, and the relatively low cost of living compared to its north-eastern neighbour, New South Wales.
Data from the December quarter shows that over the year the state had a net inflow of 9,300 residents from other states and territories. Denise Carlton from the ABS reports that Victoria has had an expanding population since 2011.
"Most of this increase for Victoria can be attributed to people moving from New South Wales (2,700 movers), with South Australia (2,100), Western Australia (1,400) and Queensland (1,100) the next largest contributors," she said.
Not only did Melbourne and the rest of the state pull in more people from other states, but when considering all aspects of population growth in 2014, the state grew the fastest in the whole country at a rate of 1.8 per cent. Eastern seaboard cousins Queensland and NSW achieved 1.4 per cent, the same as the national average. The only other state to exceed 1.4 per cent was Western Australia with 1.6 per cent, the second-highest overall, but still slower since the mining boom has started petering out.
Why choose Melbourne and Victoria?
For many people, the drive behind a move to Melbourne is the fact that it is more affordable than Sydney. CoreLogic RP Data reveals that homes for sale in Melbourne are considerably cheaper than in the Harbour City, even if they are relatively expensive compared to other capital cities. The difference in property prices can be astounding. Houses in the Victorian capital comes in 30 per cent cheaper than Sydney, and units cost three-quarters of the price in Melbourne when compared to those in Sydney.
"Melbourne has the second most expensive median house and unit prices however, Melbourne's median house price is $259,800 lower than Sydney's and the median unit price in Melbourne is $158,000 lower than Sydney's," said CoreLogic RP Data senior analyst Cameron Kusher.
Although, is property affordability the only aspect of living that might rank Melbourne ahead of Sydney? Looking at a cost of living comparison between the two cities on Numbeo, it's considerably cheaper to reside in the Victorian capital, for a number of reasons.
In most aggregate categories Melbourne is cheaper than Sydney, except for restaurant prices, where the Harbour City can claim an advantage of 0.94 per cent for the cost of dining out. The price of rental properties in Sydney was determined to be considerably more expensive, at 41.34 per cent more than Melbourne, while groceries and consumer prices in general were 1.94 and 1.56 per cent higher in Sydney, respectively.
What do all these figures mean at the end of the day? Numbeo suggests, using figures as at 26 June, that to maintain the kind of lifestyle that would cost you $6,100 a month in Melbourne (including rent), you would need $6,999.79 in Sydney. While Sydneysiders may earn more on average, the figures suggest that the difference is a little over $300 a month.
With fine beaches, reasonable prices and an abundance of new apartments and houses for sale, it's no wonder Melbourne is one of the most popular choices for people looking to live on the eastern seaboard. If you're considering a move to the Victorian capital, make sure to touch base with a Ray White real estate agent to learn the lay of the land.
