The Australian Bureau of Statistics has released figures which reveal Melbourne dominated Australia's population growth adding 77, 242 people in 2011-2012, with Melbourne's population hitting almost 4.25 million.

Executive Director of the UDIA (VIC), Tony De Domenico said, "The combined pressure of population growth and housing affordability has continued to consolidate housing projects on the fringe suburbs of Melbourne which are becoming increasingly popular with families because of the space and facilities they offer.

"The current perception of many that living on the fringe presents a second class housing choice is being challenged as many people choose to live in these areas for lifestyle or employment reasons."

Mr De Domenico said, "New housing developments are offering not only a home with a backyard, which is still an important part of the great Australian Dream for many people, but also a wide range of facilities ranging from extensive parks, walking and cycling paths to community centres.

"The release of the ABS population figures, which show the Cities of Wyndham, Whittlesea, Casey and Melton were the highest for population increases, supports the recent decision by the Victorian Treasurer Michael O'Brien, to limit the First Home Buyers Grant to new buildings to stimulate the industry and create employment.

"The property industry in Victoria directly employs around 310,000 full time employees, contributes around 12 per cent of the state's gross domestic product and $4.6 billion in taxes to all tiers of government."

Mr De Domenico said that the management of increased population for Victoria is seeing major development growth in regional areas such as Geelong, Bendigo, Ballarat and coastal areas which will help spread the population.

"The mix of housing choice in new housing projects is also changing with a mix of detached homes of all sizes to terrace style homes and apartments.

"Currently there has never been a better time to purchase a new home with interest rates at an historical low, the industry has a wide range of stock at competitive prices and the First Home Buyers Grant is available from 1 July in Victoria.

"The population pressure does not come without the challenges to provide infrastructure and the UDIA has been urging Governments to introduce Government backed Infrastructure bonds to put Australian savings to work," Mr De Domenico added.

Media Enquires:
Ron Smith, Corporate Media Communications, UDIA (VIC) - Mobile: 0417 329 201