Due to the previous year’s performance of the Melbourne property market, Are you confused whether or not to invest in Melbourne Property for 2021 and forwards?
Congratulations on crossing the first step of investment which is making a firm decision to invest in Property. But property investment isn’t as simple and easy as it may seem sometimes. One needs a piece of good knowledge and smart tips to invest in.
Don’t worry! You have landed in the right place! We are here to ease your hunting process by providing you with as many tips and knowledge that we can. Today, we will acknowledge you with the best suburbs to invest in Melbourne according to our research. Before that, if you are investing for the first time in a property, we have an article including a few tips that can help you make a smart property investment.
Why Invest In Melbourne Property In 2021?
- The Melbourne property market has been on a bit of a bumpy ride in the previous year due to Covid hit on. But it is also analyzed that after Sydney’s property investment trends (Best suburbs to invest in Sydney), Melbourne’s real estate market is rising at a reasonable rate.
- Some real estate experts also estimate that this year the property growth in Melbourne can reach anywhere between 8 – 12%.
- According to CoreLogic data, Melbourne’s number of suburbs with a median house price of $1 million or more has risen to 119 suburbs, from 98 suburbs the previous year. The units show a notably increased growth rate.
- Melbourne is Tourists and migrants favorite as well so if you invest in some property now it may pay you better once this Coronavirus challenge is done with.
- Many properties in Melbourne are affordable with good ROI.
- Current DSR (Demand to supply ratio) is high.
- The lost employment recovery is seen strong in Melbourne in 2021.
- With the latest stamp duty concessions declaration (https://www.sro.vic.gov.au/first-home-owner/apply-first-home-buyer-duty-reduction) Melbourne has become an attraction to many first home buyers/investors.
- The Victorian Government has also confirmed a land transfer (stamp) duty waiver (https://www.sro.vic.gov.au/land-transfer-duty-waiver-residential-property-transactions-1-million) for purchases of Victorian residential property with a dutiable value of up to $1 million.
These are just a few findings, there can yet be many more reasons for property investment in Melbourne.
Now! Before you invest anywhere, we suggest you do your part of research as well, and with that try and get experts’ advice face to face on the same. Property investment somehow is subjective too i.e. the choice of property investment can vary from person to person based on their purpose. Some might be up for short term gain, some for long term or some may be investing for higher rental income, and some for higher property sale value and some might want more cash flow positive investment.
Hence, we accommodate a list of a few suburbs with some parameters that might help you choose which suburb fits best your purpose of property investment in Melbourne. Also note that this is not a ranked list, you may rank it up as per your purpose and choice for your investment decision. Without further ado let’s jump right in!
NOTE: All the data enlisted here are as per the latest reports issued by CoreLogic.
Best Suburbs For Property Investment In Melbourne For 2021
[1] Toorak:
Toorak has a long reputation of being Melbourne’s most elite, and ranking among the most prestigious suburbs in Australia. Toorak has been an eye stopper location for many consulate offices and their residences, including China, the US, Britain, Monaco, Sweden, Turkey, and Switzerland. Besides being Elite, Toorak is growing faster in terms of the property market in Melbourne. Toorak is also one of the most expensive suburbs in the whole of Australia.
Toorak being at a distance of 8.3 km from Melbourne CBD is one of the best suburbs to invest in Melbourne with a Median sale price of $5,000,000 for Houses and $1,267,500 for Units. Toorak has shown an average annual growth rate of 8.32% and 6.98% for houses and units likewise. The Gross Rental Yield in Toorak is recorded at its best 1.07% for houses and 1.85% for units.
| Population | 12,909 |
| Average Annual Growth rate | 8.32% – Houses6.98% – Units |
| Median Price | $5,000,000 – Houses$1,267,500 – Units |
| Median Rent | $1,025 PW – Houses$450 PW – Units |
| Distance from Melbourne CBD | 8.3 km |
| Gross Rental yield | 1.07% – Houses1.85% – Units |
[2] Hawthorn:
Hawthorn is an inner suburb of Melbourne located 9.6 km from Melbourne CBD. Hawthorn is Popularly known for its foodie spots and pretty shops, private schools, pristine heritage homes and leafy spaces. Glenferrie Road, Hawthorn, is designated as one of 82 Major Activity Centres in the Melbourne 2030 Metropolitan Strategy.
Hawthorn’s Median sale price till April’21 has been $2,327,500 for Houses and $600,000 for Units. Hawthorn showed an average annual growth rate of 7.87% and 2.34% for houses and units likewise. The Gross Rental Yield in Hawthorn is recorded at its best 1.76% for houses and 3.29% for units.
| Population | 23,511 |
| Average Annual Growth rate | 7.87% – Houses2.34% – Units |
| Median Price | $2,327,500 – Houses$600,000 – Units |
| Median Rent | $790 PW – Houses$380 PW – Units |
| Distance from Melbourne CBD | 9.6 km |
| Gross Rental yield | 1.76% – Houses3.29% – Units |
[3] Bentleigh:
Bentleigh is a prime position due to easy access to good schools, spacious homes, neat shops, greenery, and public transport etc. It is an extremely family friendly suburb and quite close to the bayside and beaches.
Bentleigh, located at 19.7 km from Melbourne CBD, has reached an average annual growth rate of 5.86% for houses and 2.43% for units this year. Bentleigh’s median sale price has landed to $1,534,000 for houses and $763,500 for units with rental yields of 2.12% for houses and 3.13% for units.
| Population | 16,153 |
| Average Annual Growth rate | 5.86% – Houses2.43% – Units |
| Median Price | $1,534,000 – Houses$763,500 – Units |
| Median Rent | $625 PW – Houses$460 – Units |
| Distance from Melbourne CBD | 19.7 km |
| Gross Rental yield | 2.12% – Houses3.13% – Units |
[4] Brighton:
Brighton is an affluent coastal suburb of Melbourne located 12 km to Melbourne CBD. Brighton shelters few of the wealthiest citizens in Melbourne with enormous houses, and large developmental residential blocks of land. A lot of notable actors, writers, poets, athletes and media personas reside in Brighton. Brighton is also famous for its Dendy Street Beach having its 82 colourful beach boxes.
The Median Sale price for houses in Brighton turned to $3,150,000 and for units it is $967,500 with an average annual growth rate of 6.60% for houses and 2.97% for units. The rental yield for houses in Brighton has been recorded at 1.81% and for units as 3.22%.
| Population | 23,253 |
| Average Annual Growth rate | 6.60% – Houses2.97% – Units |
| Median Price | $3,150,000 – Houses$967,500 – Units |
| Median Rent | $1,098 – Houses$600 – Units |
| Distance from Melbourne CBD | 12 km |
| Gross Rental yield | 1.81% – Houses3.22% – Units |
[5] Hampton:
Hampton is the best suburb for amenities, safety, infrastructure, proximity to Melbourne and the foreshore. Hampton is also one of the richest suburbs of Melbourne. It has a hint of rural vibes.
Hampton located 17.8 km from Melbourne CBD is a great investment option with median sale price of $2,150,000 for Houses and $976,000 for units. The average annual growth rate reported by Corelogic as on April’21 is 5.39% for houses and 5.05% for units. However the gross rental yields for Hampton has been around 2.11% for houses and 2.93% for units.
| Population | 13,391 |
| Average Annual Growth rate | 5.39% – Houses5.05% – Units |
| Median Price | $2,150,000 – Houses$976,000 – Units |
| Median Rent | $873 PW – Houses$550 PW – Units |
| Distance from Melbourne CBD | 17.8 km |
| Gross Rental yield | 2.11% – Houses2.93% – Units |
[6] Richmond:
Richmond contains a diversified and elite mix of expensively converted warehouse residences, public housing high-rise flats and terrace houses from the Victorian-era. Richmond has some of Melbourne’s best examples of residential architecture from most periods. This inner suburb in Melbourne has access to all the great amenities as well.
Richmond is located just 5.5 km away from Melbourne CBD and is near to all the necessary amenities. The latest average annual growth rate as reported by Corelogic is 5.29% for houses and 2.19% for units. With the median price of $1,355,000 for houses and $650,000 for units, Richmond is also one of the considerate suburbs for investment in Melbourne. The gross rental yield recorded this year has been 2.49% for houses and 3.52% for units.
| Population | 22,475 |
| Average Annual Growth rate | 5.29% – Houses 2.19% – Units |
| Median Price | $1,355,000 – Houses$650,000 – Units |
| Median Rent | $650 PW – Houses$440 PW – Units |
| Distance from Melbourne CBD | 5.5 km |
| Gross Rental yield | 2.49% – Houses3.52% – Units |
[7] Mount Martha:
Mount Martha is a beautiful beachside town full of fantastic schools, friendly community, and lots of cafes, restaurants. Much of the coast around Mount Martha consists of rocky cliffs with bushland up above, with walking tracks and scenic viewing spots.
Mount Martha, located 79.7 km from Melbourne CBD, has reached an excellent average annual growth rate of 7.94% for houses and 5.89% for units this year. Mount Martha’s median sale price has come up to $1,285,000 for houses and $690,000 for units with rental yields of 2.41% for houses and 3.92% for units.
| Population | 18,548 |
| Average Annual Growth rate | 7.94% – Houses5.89% – Units |
| Median Price | $1,285,000 – Houses$690,000 – Units |
| Median Rent | $595 PW – Houses$520 PW – Units |
| Distance from Melbourne CBD | 79.7 km |
| Gross Rental yield | 2.41% – Houses3.92% – Units |
8] Surrey Hills:
Surrey Hills is a residential suburb 11 km from Melbourne CBD. Surrey Hills is a friendly, inclusive and welcoming meeting place where people are encouraged to come together and share experiences and skills.
Surrey Hills’ median sale price ranges from $1,942,500 for houses and $873,750 for units with an average annual growth rate of 5.76% for houses and 3.48% for units. When it comes to renting, the Surrey Hills gross rental yield is 1.85% for houses and 2.65% for units.
| Population | 13,605 |
| Average Annual Growth rate | 5.76% – Houses3.48% – Units |
| Median Price | $1,942,500 – Houses$873,750 – Units |
| Median Rent | $690 PW – Houses$445 PW – Units |
| Distance from Melbourne CBD | 11 km |
| Gross Rental yield | 1.85% – Houses2.65% – Units |
[9] Canterbury:
Canterbury is an eastern suburb of Melbourne situated 10 km from Melbourne CBD. Canterbury is a posh and elite suburb sheltering many notable residents like Frank Cicutto, Russell Jones, Craig Saddler, Philip Webb, etc. Canterbury is a good suburb to consider for investment.
Canterbury’s median sale price for houses is $2,835,000 and for units is $1,020,000. The latest average annual growth rate reported is 5.42% for houses and 5.42% for units with rental yields of 1.63% for houses and 2.52% for units.
| Population | 8,056 |
| Average Annual Growth rate | 5.42% – Houses5.42% – Units |
| Median Price | $2,835,000 – Houses$1,020,000 – Units |
| Median Rent | $890 PW – Houses$495 PW – Units |
| Distance from Melbourne CBD | 10 km |
| Gross Rental yield | 1.63% – Houses2.52% – Units |
[10] McCrae:
McCrae is Melbourne’s suburb which is located on the Mornington Peninsula 89.2 km from Melbourne CBD. McCrae’s median sale price for houses is $1,150,000 and for units is $580,000. The average annual growth rate of McCrae is amazingly reported at 9.13% for houses and 3.92% for units with rental yields of 2.37% for houses and 4.03% for units.
| Population | 2,823 |
| Average Annual Growth rate | 9.13% – Houses3.92% – Units |
| Median Price | $1,150,000 – Houses$580,000 – Units |
| Median Rent | $525 PW – Houses$450 PW – Units |
| Distance from Melbourne CBD | 89.2 km |
| Gross Rental yield | 2.37% – Houses4.03% – Units |
[11] Mount Waverly:
Mount Waverley is one of the best suburbs to live in with the best amenities that Melbourne can offer such as Chadstone SC, public & private schools etc. Being such a large suburb, Mount Waverley has plenty expanding quickly. There are oversized blocks with homes to match to plentiful parks and recreation options.
Mount Martha, located 22.9 km from Melbourne CBD, has reached an excellent average annual growth rate of 6.01% for houses and 5.87% for units this year. Mount Martha’s median sale price has come up to $1,350,000 for houses and $1,021,000 for units with rental yields of 1.86% for houses and 2.65% for units.
| Population | 33,611 |
| Average Annual Growth rate | 6.01% – Houses5.87% – Units |
| Median Price | $1,350,000 – Houses$1,021,000 – Units |
| Median Rent | $483 PW – Houses$520 PW – Units |
| Distance from Melbourne CBD | 22.9 km |
| Gross Rental yield | 1.86% – Houses2.65% – Units |
[12] Greenvale:
Greenvale is known as “Toorak of the North” due to the older mansions. Greenvale is a Luxury living with high exposure to natural beauty and super family friendly, growing at a pace.
Greenvale is located approximately 26.5 km from Melbourne CBD. Greenvale’s median sale price ranges from $765,000 for houses and $585,000 for units with an average annual growth rate of 4.10% for houses. For renting, Greenvale’s gross rental yield is 1.85% for houses and 2.65% for units.
| Population | 15,466 |
| Average Annual Growth rate | 4.10% – Houses |
| Median Price | $765,000 – Houses$585,000 – Units |
| Median Rent | $440 PW – Houses$396 PW – Units |
| Distance from Melbourne CBD | 26.5 km |
| Gross Rental yield | 2.99% – Houses3.5% – Units |
[13] Sunbury:
Sunbury, located 41.4 km from Melbourne’s CBD is a perfect balance of city and country life. Sunbury is the birthplace of cricket’s most sought trophy—The Ashes. The region is also shelters The Dingo Discovery Sanctuary and Goonawarra Golf Club.
Sunbury, located 41.4 km from Melbourne CBD, has shown an average annual growth rate of 5.92% for houses and 3.48% for units this year. Sunbury’s median sale price is $600,000 for houses and $437,500 for units with rental yields of 3.38% for houses and 4.28% for units likewise.
| Population | 36,084 |
| Average Annual Growth rate | 5.92% – Houses3.48% – Units |
| Median Price | $600,000 – Houses$437,500 – Units |
| Median Rent | $390 PW – Houses$360 PW – Units |
| Distance from Melbourne CBD | 41.4 km |
| Gross Rental yield | 3.38% – Houses4.28% – Units |
[14] Port Melbourne:
Port Melbourne is an upscale coastal suburb, with fancy apartments in high-rises and converted warehouses. The Port of Melbourne is Australia’s largest container and general cargo port. Port Melbourne is split between two local governments, City of Melbourne and City of Port Phillip.
Port Melbourne is located just 5.9 km from Melbourne CBD. Port Melbourne’s median sale price ranges from $1,665,000 for houses and $725,000 for units with an average annual growth rate of 6.63% for houses and 2.08% for units. In terms of renting, Port Melbourne’s gross rental yield is 2.19% for houses and 3.94% for units.
| Population | 16,175 |
| Average Annual Growth rate | 6.63% – Houses2.08% – units |
| Median Price | $1,665,000 – Houses$725,000 – Units |
| Median Rent | $700 PW – Houses$550 PW – Units |
| Distance from Melbourne CBD | 5.9 km |
| Gross Rental yield | 2.19% – Houses3.94% – Units |
[15] Kew:
Kew is a greener inner suburb of Melbourne, situated 7.6 km from Melbourne CBD used to be a city in its own right. It’s also closer to Tram line. Kew has grown steadily since the early Bridge Road crossing development and is cited as one of the most prestigious suburbs in Melbourne, thereby attracting highest resale value in Melbourne.
Kew has shown an average annual growth rate of 4.09% for houses and 3.08% for units this year. Kew’s median sale price is $2,406,500 for houses and $855,000 for units with rental yields of 1.73% for houses and 2.68% for units likewise.
| Population | 24,605 |
| Average Annual Growth rate | 4.09% – Houses3.08% – Units |
| Median Price | $2,406,500 – Houses$855,000 – Units |
| Median Rent | $800 PW – Houses$440 PW – Units |
| Distance from Melbourne CBD | 7.6 km |
| Gross Rental yield | 1.73% – Houses2.68% – Units |
[16] Tarneit:
Tarneit has been designed well with many parks and schools and the affordability of Tarneit makes it a popular choice for young families. Tarneit is a western suburb situated at a distance of 29.5 km from Melbourne CBD. It is a rapidly growing suburb with more developments coming up.
Tarneit’s median sale price recorded at $575,000 for houses and $435,000 for units with an average annual growth rate of 4.66% for houses and 4.06% for units. When it comes to renting, Tarneit’s gross rental yield is 3.44% for houses and 4.12% for units.
| Population | 35,134 |
| Average Annual Growth rate | 4.66% – Houses4.06% – Units |
| Median Price | $575,000 – Houses$435,000 – Units |
| Median Rent | $380 PW – Houses$345 PW – Units |
| Distance from Melbourne CBD | 29.5 km |
| Gross Rental yield | 3.44% – Houses4.12% – Units |
[17] Melton:
Melton is the central suburb in the satellite city of Melton, located in Melbourne’s outer western suburbs. Melton is well known for its annual weekend long festival known as “The Djerriwarrh Festival”. Melton’s landscape is dominated by new brick housing, some of which are known as McMansions as well.
Melton, located 44.3 km distant from Melbourne CBD has shown an average annual growth rate of 5.21% for houses and 3.77% for units this year. Melton’s median sale price is $406,000 for houses and $332,500 for units with rental yields of 4.10% for houses and 4.77% for units accordingly.
| Population | 180,636 |
| Average Annual Growth rate | 5.21% – Houses3.77% – Units |
| Median Price | $406,000 – Houses$332,500 – Units |
| Median Rent | $320 PW – Houses$305 PW – Units |
| Distance from Melbourne CBD | 44.3 km |
| Gross Rental yield | 4.10% – Houses4.77% – Units |
[18] Malvern:
Malvern is the inner suburb of Melbourne located approx.13.3 km from Melbourne CBD. Malvern is a well-settled area with period homes, plenty of schools, a good swim centre, bustling shopping strips, excellent transport facility and the newly revamped Malvern Central shopping centre.
Malvern’s median sale price recorded at $2,855,000 for houses and $805,000 for units with an average annual growth rate of 5.51% for houses and 4.96% for units. When it comes to renting, Malvern’s gross rental yield is 1.55% for houses and 2.58% for units.
| Population | 10,066 |
| Average Annual Growth rate | 5.51% – Houses4.96% – Units |
| Median Price | $2,855,000 – Houses$805,000 – Units |
| Median Rent | $850 PW – Houses$400 PW – Units |
| Distance from Melbourne CBD | 13.3 km |
| Gross Rental yield | 1.55% – Houses2.58% – Units |
UNIQUE SUGGESTION
Apart from the regular property investment, you can also choose an unique option. If you are someone who seeks higher and good rental yields, then you may be interested in NDIS SDA properties as well. If you haven’t heard about it yet, no worries! You can learn more about NDIS Property Investment (NDIS – An exclusive opportunity) from our previous blog.
NDIS SDA basically provides investors 9% to 16% gross rental yield with an excellent opportunity of helping those in extreme needs. It is safe and secured as it’s a government backed investment plan. You can also check out the listings and availability of the NDIS investment property(Link of listings page) suburb or city wise. NDIS Property investment is gaining a really good momentum in the market right now with many positive responses (NDIS Property Investment Review).
CONCLUSION
With the increasing Population, migration and attraction of tourists, it is a considerate option to buy investment property in Melbourne right now. Now, it is up to you to choose which is the best investment suburb for you based on your purview.
We hope these parameters were useful enough for you to formulate your decision for buying property in melbourne. We are also aware that there can be some more good options which we might have missed out.
- Always remember to follow the basic strategies for choosing the best place to invest in melbourne according to your requirements and purpose of investment.
- You may also check the DSR (Demand to Supply Ratio) of the suburb while investing.
- Before you make any final call you must do your thorough research and check out previous years’ performance of the suburbs as well to get better clarity at it.
- Also consider the upcoming projects in those suburbs which may in future increase their value way high.
That’s all for this one. We would love to read your experience so far if you have invested in any of these suburbs. You can also leave your suggestions for our improvement down below so that we can come up with much better blogs for you in future! Until next time, stay safe and keep learning!
