Despite the struggles of the last couple years when it comes to the Melbourne property market as a whole (and in some parts due to its struggles), now makes it the perfect time to get in the investing game or continue to grow your thriving property portfolio.
With growth in the median property prices in the Melbourne metropolitan areas still well behind other capital cities since COVID-19, coupled with a still soaring demand for rental properties and plenty of exciting suburbs which offer so much upside, Melbourne is poised to once one of the shining investment jewels in the Australian crown.
The rising stars of the Melbourne investment scene
Just last month, Canstar noted Melbourne as a big mover in regard to property investment, rising from 13th to equal 5th across capital and regional cities across Australia (in their Rising Stars report). The country’s leading financial comparison sites also listed ten of the rising stars in terms of suburbs to invest in the city.
Canstar noted inner city suburbs Ascot Vale and Brunswick East as standout options for investors, thanks to their proximity to transport, universities, hospitals, and Melbourne’s CBD. The vacancy rate of both Ascot Vale and Brunswick, which is 1% and 0.7% respectively, is also well below Melbourne’s average. Mitcham and Nunawading in Melbourne’s east were other suburbs of note on the list, thanks also to low vacancy rates as well as high buyer demand.
Oakleigh was another suburb on the rise according to Canstar when it comes to investing. They noted The City of Monash as one of the economic strongholds of Greater Melbourne, and the suburb’s location so close to the renowned Monash University, Monash Medical Centre, and the Victorian Heart Hospital make it very appealing. Oakleigh also enjoys major road and rail links to central Melbourne.
Your opportunity to buy low and sell high!
Like virtually all capital cities in Australia, Melbourne boomed when it came to median property prices during the COVID-19 pandemic (peaking in March 2022), only to hit a rough patch with the RBA rates hikes of the second half of 2022 and for some of 2023. While most of the other cities in Australia continue to claw their way back, Melbourne has somewhat stalled with its median pricing.
Melbourne has historically always been Australia’s 2nd most expensive major city to purchase a property in (excluding Canberra), and for good reason. Many times awarded the world’s most liveable city, Melbourne offers art, culture, world-class events, and an array of sensational amenities and attractions spread out over a diverse range of appealing suburbs.
Having come back to the pack in terms of median pricing, now surely is the time to take the punt and invest in the Melbourne property market. As the tried and true saying goes, buy low and sell high!
High Street claims ‘The Coolest Street in the world’ title
If you’re an investor looking to go north, you may want to find yourself somewhere around High Street. Running through Preston, Northcote, and Thornbury, High Street was named by publication Time Out last month as the coolest street in the world, beating out Hollywood Road in Hong Kong, Consell de Cent in Barcelona, Chazwa-dori in Tokyo, and East Eleventh in the very hip Austin.
Time Out cited food and drink options such as Casa Nata, 1800 Lasagna, and Northside Wines as what makes it such an appealing strip, as well as music venues The Northcote Social Club, Croxton Band Room, High Note, and Shotkickers.
Low vacancy rates continue on
While March did see an easing when it comes to vacancy rates, it still continues to be tough going for those wanting to secure a rental property. March saw vacancy rates in Melbourne hit 1.12%, marginally up from 1.07% in February. “High levels of migration, primarily across Australia’s capital cities, have driven increased demand for rentals, with the number of vacant homes plummeting by 58% in the cities and 47% in regional areas over the past four years,” said Anne Flaherty, Economist at PropTrack.
The continued low vacancy rates and demand for rental properties could be the reason that Melbourne’s average rental yield hit 3.57% in March, which is the highest gross yield since 2015 according to CoreLogic. With rental yields continuing on an upward trend, coupled with this high desire for rental properties, investors sentiment is only looking positive for the foreseeable future (although not as positive unfortunately if you yourself are looking for a property to rent).
In Melbourne, the charm of warehouse conversions has not only been preserved but celebrated, making them a cherished option among homebuyers. These once bustling industrial sites now serve as bespoke residences, creating spaces that are as characterful as the city itself.
In the pursuit of transforming houses into homes, Australians have access to a splendid array of homeware brands that offer unique aesthetics and quality craftsmanship. Whether looking to add a touch of elegance, a splash of colour, or a statement piece, these brands cater to every design vision.
Fireplaces have long been cherished as the heart of the home, providing both warmth and a cosy gathering spot. Historically essential in every period home, they featured prominently from kitchens to bedrooms.
Whether it’s window-shopping at boutique stores, people-watching from a cafe, or enjoying a sundowner from a rooftop bar, Melburnians often find their happiest moments along these bustling locales.
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