A new projection of the Victorian population proves promising for property demand, particularly in Melbourne.
The new official report, Victoria in Future 2012, shows an expected steady rise in population from 5.6 million currently to 7.3 million in 2031.
This is an average annual growth rate of 1.3 per cent.
This new projection is more optimistic than that recorded in 2008, estimating an additional 72,000 people.
This change is due to the forecasting model taking into account the strong growth experienced between 2007 and 2009, said Mr Guy.
“A major component of the government's long-term plan to manage growth and change is the delivery of new affordable homes, infrastructure and conditions that encourage jobs, businesses and attract investment,” he said.
The newly updated statistics will also prompt new metropolitan planning reforms from the State Government to balance this growth.
"The strategy will consider all aspects of planning - from where new housing and jobs should be located as well as transport connections, health services, schools, community facilities and parks," Mr Guy said.
"I look forward to reviewing the Capital City Zone and the potential to redefine the CBD by expanding its concept to Docklands, St Kilda Road and Fishermans Bend to optimise the advantages of a larger core for decades to come,” he said.
Investors can, however, still rely on the Growth Corridor Plans and the Regional Growth Plans that are already lined out by the government, as the new strategy builds further on these approaches.
The population in Melbourne is set to see the most significant growth, from 4.1 million to 5.4 million, while regional Victoria will see an increase from 1.5 million to 1.9 million.
Overseas migration will be the strongest driver over the longer term.
While investors looking towards Victoria should be buoyed by the new forecast that every LGA will report an increase in population, it should be noted that the projects also suggest that the most growth will be centered in the North and West of Melbourne.
The strongest growth is projected in Cardinia, Casey, Hume, Melton, Whittlesea and Wyndham.
Inner city areas including the Cities of Melbourne, Port Phillip, Yarra and Maribyrnong have also been listed by the report as growth areas, while regional cities Geelong, Ballarat, Bendigo, Latrobe Valley, Shepparton, Mildura, Wodonga and Warrnambool are also tipped for strong population growth.