Melbourne could be Australia’s biggest city by 2030

 An aerial image of Point Cook's population spike over eight years. (9NEWS/Near Maps)

An aerial image of Point Cook's population spike over eight years. (9NEWS/Near Maps)

On current trends, Melbourne will become the nation’s most populous city sometime in the 2030s, well ahead of previous estimates.

Currently Melbourne’s population stands at 4.7 million, and is expected to hit five million by 2021.

By 2050, that figure is forecast to soar to eight million.

With the predicted population explosion, Plan Melbourne- the state government’s blueprint to 2050- predicts the city will need to:

  • Build another 1.6 million homes
  • Create 1.5 million extra jobs
  • Cater for 10 million more trips a day on public transport; an 80 percent increase.

A leading demographer has reported that the reason behind the city’s flourishing population was its affordability relative to Sydney.

“You can still buy a house and land package in Melbourne’s western fringe with a ‘three’ in front of the price. You cannot do that anywhere near Sydney.”

Full a full copy of the report click [here]

The population growth predictions for Melbourne abode well for CFMG Capital’s acquisition strategy with a geographical focus on Metropolitan Brisbane and Melbourne with a targeted project allocation by State that meets the following weighting to ensure an appropriate level of diversification:

Target Weightings (by Gross Realisation)

Minimum

Maximum

NSW

10%

20%

VIC

20%

40%

QLD

40%

80%

WA

0%

0%

SA

0%

0%

NT

0%

0%

TAS

0%

0%

The targeted project allocation by State reflects the following underlying principles:-

  • NSW, VIC and QLD make up 80% of Australia’s population and contribute a similar amount to Australia’s national GDP.  These States therefore enjoy the majority of Australia’s population growth and attract significant capital expenditure for key infrastructure projects, which enhances economic prosperity and provides economic diversity.
  • Victoria is leading annual population growth at 2.1%, with Queensland and New South Wales coming in second with a growth of 1.4%. The rest of the states and territories fall behind these levels.
  • WA and NT have both traditionally performed poorly and with continued low commodity prices and low population growth this trend is expected to continue.

CFMG Capitals development pipeline of more than 1,000 lots across six different projects has provided a stable platform for growth with the key to this success being working to a clearly defined strategy with asset selection.

Another key focus for CFMG Capital is to assess the geographical locations and States within Australia which have the appropriate fundamentals for growth. 

To learn more about CFMG Capital's processes and how CFMG Capital may be able to assist you book into an online information session now by [registering here].