The best investment property suburbs in Melbourne

Sydney stole all the headlines in the past few years, Melbourne quietly chugged along in the background, posting solid results and plenty of investment opportunity.

In fact, in October 2017, Melbourne’s results were stronger than Sydney’s because that market seems to have finally run out of puff.

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According to CoreLogic, Melbourne dwelling prices increased by 0.5 per cent in October, while Sydney’s fell by 0.5 per cent.

Over the year, Melbourne has recorded price growth of 11 per cent, versus 7 per cent in Sydney.

Melbourne is a city of nearly five million people, with strong population growth predicted for the decades ahead.

Many investors are keen to stake their claim in the Melbourne market to ride those future capital gains, so the question becomes what are the best investment suburbs in Melbourne?

Melbourne’s housing market is resilient, but changing fast

The best investment property suburbs in Melbourne

Like other east coast capital cities, Melbourne’s market has been resilient over recent years, but it hasn’t escaped from the oversupply of new apartments, especially in the inner-city.

Of course, that oversupply is just a moment in time, with population growth and buyer demand likely to soak it up over the short- to medium-term.

According to property experts, Melbourne’s property market will remain resilient next year, with perhaps a minor slowdown predicted.

It is clear that the APRA interventions over the past 18 months have achieved their aim and possibly prevented any major property slumps in our two major capital cities.

The softer unit market is likely to provide opportunities for first home buyers as well, especially since the Victorian Government has a number of grants and concessions for first-time buyers of new property.

Which Melbourne suburbs delivered the best investment growth this year?

When it comes to the best growth suburbs in Melbourne, the results can be as long as your arm – depending on whose data, and which measure, you use.

The best investment suburbs in Melbourne, however, are generally the ones that have a strong history of capital growth, which is likely to continue into the future.

Past capital growth plus jobs, amenities such as schools and public transport and access to the city and the like all bode really well for future growth.

We are also seeing many of these older suburbs like Richmond, Port Melbourne, North Melbourne, Kensington and Fitzroy really gentrify given their proximity to the city.

Café and coffee cultures are springing up all around these suburbs, as are trendy little wine bars and micro-breweries that make these suburbs both cool to visit and even better to live in.

These include the inner- and middle-ring suburbs, such as St Kilda East, Box Hill and Mount Waverley, which have all posted strong growth in recent times.

And perennial favourites such as Bayside Melbourne (Brighton, Elwood, Hampton, Sandringham) and the inner east such as Malvern, Balwyn, Hawthorn and Camberwell also remain popular, and house prices remain strong as these are highly desirable suburbs to live in, with some of Melbourne’s best private schools featuring around these areas.

The best investment suburbs in Melbourne, however, are also the ones that fit your individual investment strategy.

Perhaps you’re seeking a capital growth property for your portfolio, which would necessitate investing in a suburb that will always be in strong demand from owner-occupiers, who generally push prices up because of their desire to live there.

On the other hand, perhaps you need a cash flow property, which is where the outer-ring suburbs, or even regions like Geelong, might work for your portfolio.

The main thing to understand when trying to ascertain the best investment suburbs in Melbourne is that it’s the suburbs that have runs on the board that are the ones most likely to continue to post solid results. Over time, these have tended to be the inner to middle-ring suburbs in a 2km to 15km radius from the CBD.

The fact of the matter is that trying to “outsmart” the market rarely works, which is why hotspots generally turning into “not spots”.

Where should I turn for Melbourne investment advice?

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The Melbourne property market is full of opportunities for investors  – as long as you understand the best ones for your individual circumstances.

The world of banking and finance can be a pretty daunting one for both novice and sophisticated investors and since our establishment in 2002 we’ve focused on providing outstanding service and business standards.

This approach has been vindicated many times by our multi award-winning approach.

So, if you’d like to understand more about the best investment suburbs in Melbourne, why not contact Intuitive Finance today to ensure you have the right information and expert support on your side from the very beginning.

If you’d like an expert to teach you more about the Melbourne market or if you have any other questions, please just contact us directly and we’ll be in touch.

Discuss your specific needs & formulate the right strategy for you. Get in touch to organise your complementary 60min session today!

The information provided in this article is general in nature and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information with regard to your objectives, financial situation and needs.

Andrew Mirams

Andrew Mirams

Andrew Mirams is the Managing Director of Intuitive Finance and is a highly qualified mortgage advisor who holds dual diplomas in Financial Planning (Financial Services) and Banking and Finance (Mortgage Broking). Andrew’s expertise covers all aspects of lending for a diverse range of applications – from first home buyer loans or property upgrader loans, property investor loans, expatriates and loans for self-employed. With almost 30 years of experience, Andrew has been acknowledged by the mortgage industry as one of its best performers with multiple awards including regularly featuring in both the top 100 mortgage brokers list and Top 50 Elite business writers. Andrew was voted Victoria's favourite Mortgage Broker at the 2015 Investors Choice Awards, and won again for the same category at the 2017 Better Business Awards. The team at Intuitive Finance has also figured prominently by winning the 2016 "Best Independent Office (<5 brokers)" and "Best customer Service" Awards, and more recently at the 2017 MFAA National Awards, they also took out the "Best Customer Service" Award, a recognition which speaks for itself! Visit Intuitive Finance for more information.
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