If you’ve been on the fence about applying for a construction home loan in Melbourne for some time, then now could be the ideal chance to enter the market. Activity is currently booming across the city, giving investors the incentive they need to take the plunge.

Data from the City of Melbourne’s Development Activity Monitor shows inner-city construction reached a record high last year. Over the 12-month period, a total of 6,300 new properties were built, which is double the amount built in 2013.

Ken Ong, chair of council’s planning portfolio, explained that efforts are being made to ensure the city can offer the diversity in housing stock needed by future generations. Infrastructure demands are also being met through a series of initiatives.

Melbourne’s Lord Mayor Robert Doyle revealed that 13,500 additional homes are due to be completed over the next three years, bringing widespread benefits to the Victorian state capital.

“An additional 76,000 jobs have been generated in the City of Melbourne in the past six years and our Gross Local Product has increased by $20 billion,” said Mr Doyle.

“As the fastest-growing municipality in Australia, we welcomed an additional 11,000 Melburnians in 2013 so it’s no surprise that residential development continues to flourish.”

Last month, the Housing Industry Association (HIA) claimed that the residential construction sector is crucial to the economy – and will continue to be well into 2015. HIA Economist Diwa Hopkins noted that efforts should be made to ensure the sector is able to thrive and offer the wider economy the support it needs.

A wide variety of residential construction projects are in the pipeline throughout Melbourne, with 52 per cent of them due to be two-bedroom dwellings. Just under 5 per cent are due to have three or more bedrooms, while less than 1 per cent will be studio apartments.

You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!

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DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.