3 ways Melbourne is set to grow this year
A lot has been happening over the last few months in Melbourne. However, it always pays to keep looking and planning ahead, so let’s take a look at what’s going to happen over the next year and how it might affect your property portfolio.
1) Renewable energy’s bright future
The rising trend of renewable energies is hitting Melbourne in a big way.
You can’t have a city without power, and the rising trend of renewable energy is hitting Melbourne in a big way. While solar power has had a solid penetration rate in the residential market and even a few iconic local offices, the government has been relatively slow to react to the growing demand for alternative energies. Melbourne, a city that is still heavily powered by brown coal, has been in desperate need of some additional efforts to help reach its renewable energy target.
But it looks like the Victorian government is making some seriously strong plans to reach that goal, along with some help from local business and organisations. The Melbourne Renewable Energy Project, intended to provide power to more than 280,000 homes, has now reached a critical phase as it opens to tender offers from across Australia.
The actual source of this renewable energy could be described as “technologically agnostic”, as Councillor Arron Wood, Chair of Melbourne’s Environment Portfolio called it in an interview with Renewable Energy Magazine. This means it could be provided by any type of combination of alternative technologies. Solar and wind seem to be the main contenders for the position, though regardless of the method, the new project is sure to push Melbourne property into the future with clean green energy.
Melbourne will grow larger this year – in more ways than just one.
2) Support for infrastructure
Any rapidly growing city like the Victorian capital needs to have strong support for local infrastructure. New roads and efficient public transport are key to ensuring we continue to live in a connected and well-organised metropolis, and Melbourne looks to be going from strength to strength in this regard as the new state budget announces billions of dollars in governmental investment in infrastructure.
The Real Estate Institute of Victoria (REIV) has voiced its support of this decision, naming the $10.4 billion investment across metropolitan and regional Victoria as a significant step in the right direction for the state as a whole.
“Given the significant growth in Melbourne’s outer suburbs in the past two quarters, improved road and rail infrastructure will drive continued price growth in areas further from the city and within commuting distance of the CBD,” said Enzo Raimondo, chief executive officer of the REIV.
Infrastructure projects that will be funded in this manner include the Metro Tunnel, the Western Distributor and almost a billion dollars each for the local school system and healthcare facilities.
3) Cutting costs and red tape for new construction
Unnecessarily complex and expensive planning processes can stifle growth as much as protect it.
Because construction is so important to the continued growth of both residential and commercial real estate, it is understandable that there are going to be plenty of requirements, checks and prerequisites for people intending to take part in the process. After all, the government has to ensure that everything is above board and in accordance with the long term plan for Melbourne.
However, sometimes that can become detrimental to the actual development of the city. Unnecessarily complex and expensive planning processes can stifle growth as much as protect it, which is why the Victorian government has allocated $25.5 million into revising and streamlining planning processes for construction across the state.
What this means for property developers and buyers in the city is that you will save both money and time throughout the process. This would also remove another barrier in the way of people wanting to invest across the state of Victoria, stimulating construction growth.
We are living in one of the most liveable cities in the world – it’s only understandable that we would see such rapid growth in such a short time. With so much going on in Melbourne, it’s best to stay on top of your place in the property market by getting in touch with the real estate experts at Nelson Alexander today!
