The State of Australian Cities report was prepared by the Federal Government and was published last week and one of the areas highlighted for the City of Melbourne was the move of the workforce into Melbourne’s CBD. The report states that in the municipality of Melbourne jobs grew by 26% between 2006 and 2011. It is widely believed that Melbourne is experiencing this shift in job location due to an increase in jobs in industries such as banking, legal and insurance.
The State of Australian Cities report raises concerns that the growing distance between where people live and where they work is not only straining lifestyles, it is threatening the economy. Having more and more people involved in a long commute to work is draining productivity and placing a huge burden on public transport. Infrastructure and Transport Minister Anthony Albanese believes that there needs to be a reduction between where people live and work to positively impact on the sustainability and liveability of the city.
The report also found that Melbourne has experienced a higher population growth rate than the national average. Of the major cities Melbourne has experienced the largest total increase in population. It was also found that there has been a rise in the premium for living in central Melbourne. A dwelling close to the CBD has increased significantly more in real terms since 1986, compared with one 50 kilometres from the city centre.
With job and population growth trending towards Melbourne it is clear to see the demand for inner city dwellings will grow also. Based on the demand for inner city dwellings in comparison to outer suburban homes found in the report, it can also be suggested that buying property in inner Melbourne is a safer investment and is more likely to offer you the best return in the long run.