Melbourne brokers could become the envy of the nation, with the city forecast to add 1.6 million dwellings as the population grows 79 per cent.
The Victorian government has forecast that Melbourne’s population will grow from 4.3 million to 7.7 million by 2051.
The housing growth will mainly be higher density: 61 per cent of the new dwellings will be in established areas, while only 34 per cent of the new dwellings will be detached houses.
Scott Finance principal Callum Scott told The Adviser that the wave of new development is good news for his business.
“Where you’ve got development and demand for property, you’re going to get demand for finance. The more people who want money, the more money I make,” he said.
However, Mr Scott said it was also possible that the increase in demand for brokers could trigger a corresponding increase in supply.
Victoria Finance general manager Gaetano Palmese said he was excited by Melbourne’s forecast boom.
“All these opportunities are going to come up. I think it’s going to increase our business substantially over the next few years,” he said.
Mr Palmese said he held no fears about new brokers emerging to snap up the new business in Melbourne.
Many loan writers are set to retire in the next decade and the third-party channel has already been increasing its share of the mortgage market, he added.
Mortgage Broker Melbourne director Marc Barlow said the city’s expansion would mean more loans for him to write and probably an increase in loan values as well.
“People are going to need housing and not everyone is going to be building, they’re going to be looking at buying established, and my business is more towards the established end,” he told The Adviser.
However, Mr Barlow said he was sceptical that Melbourne could add another 3.4 million residents in the next 37 years.
He said rising property prices and a lack of infrastructure would deter many people from moving to Melbourne.