5 Best Suburbs To Invest In Melbourne in 2024
For several years, Melbourne has been able to hold on to the position of one of the most attractive cities in Australia for property investment. Cited as a city of premier arts, a diverse economy, and a geographic advantage, the Melbourne property market is perceived as a viable form of investment. From the flourishing peripheral districts to the settled central business quarters, this city has riches somebody wise enough to invest should possess. In this blog, we will identify the best suburbs of Melbourne in which it is most advantageous to invest in real estate, the factors of investment, and analyze the property market in the year 2024.
Why invest in Melbourne?
Melbourne continues to attract investors due to its high livability robust economy and consistent population growth. The city has a stable demand for housing due to its many industries which include healthcare education technology and finance. It also offers strong employment opportunities. A sizable influx of foreign students who fuel demand in the rental market adds to its allure. Notwithstanding interest rate fluctuations the Melbourne real estate market has seen a solid growth over the last 12 months, with median house prices showing consistent appreciation.
Due to their diversity, Melbourne suburbs offer investors a choice between densely populated high-growth areas and more reasonably priced outer suburbs that have enormous potential. Melbourne suburb real estate investment is a profitable choice because of the city’s continuous infrastructure upgrades such as transportation extensions which improve accessibility.
Notwithstanding changes in interest rates, the Melbourne property market has experienced solid growth over the past year. Investors can select between rapidly developing metropolitan areas and more reasonably priced outer suburbs with substantial growth potential due to Melbourne’s diverse suburbs. Additionally, the city’s ongoing infrastructure improvements such as transport expansions continue to enhance accessibility making property investment in Melbourne suburbs a lucrative option.
Key factors to consider when choosing a suburb to invest in
When choosing a suburb to invest in, several key factors can make or break the success of your investment. These factors are critical in assessing the potential property value appreciation and rental yield over time.
- Median house price: A suburb’s affordability can be gauged by looking at its median house price note which acts as a guide. While more expensive areas typically offer stable but slower growth entry-level suburbs with a relatively low median house price offer opportunities for investors seeking capital growth.
- Rental yield: Rental yield serves as a proxy for the return on investment. Some Melbourne suburbs are a good investment due to their high weekly rents strong buyer demand and low vacancy rates.
- Population growth: As a result of a greater demand for housing areas with population growth typically see increases in median house prices as well as property prices. When buying real estate it’s usually worthwhile to look into suburbs experiencing a population boom.
- Vacancy rates: Low vacancy rates indicate strong demand for rental properties. In contrast, high vacancy rates may signal a saturated rental market or declining popularity of the suburb.
- Infrastructure and amenities: Suburbs with well-developed infrastructure, shopping centers, schools, parks, and transport options tend to attract more buyers and renters. Convenient access to public transport and major roads, such as proximity to the Nepean Highway, boosts property desirability.
5 best suburbs in Melbourne to invest
Flemington
Just 4 km from the CBD Flemington is a bustling suburb known for its recognizable racecourse. It provides convenient access to public transportation and a robust rental market which is fueled by the demand of young professionals and international students. The past year has seen solid growth in Flemington real estate market with median house prices currently hovering around $1. 33 million especially in units where the median unit prices have shown favorable quarterly change.
The Real Estate Institute describes Flemington as a developing suburb where rental yields present investors looking for affordability housing close to the city with potential returns. Because of the lower-than-average vacancy rates in Melbournes’ western suburbs and the current interest rates, investors are also drawn to the monthly repayment options offered here.
Elsternwick
People looking for a mix of suburban living and being close to the city are drawn to Elsternwick because of its tree-lined streets and convenient access to some of Melbourne’s best cafes and shopping centers. Elsternwick has a median house price of about $2. 22 million and it has continuously outperformed other Melbourne suburbs in terms of buyer demand and property value.
Elsternwick appeal to professionals families and downsizers alike has contributed to the area’s rising population growth and rising property prices. The high demand for homes in this suburb is reflected in the weekly rents which indicate a promising rental yield. Unit prices increased significantly in the second half of 2023 as a result of high demand from young families and international students.
Do you have $85,000 saved in cash or equity?
Start your investment journey with us
With $85,000 in savings or equity, you can begin or grow your investment portfolio with high-growth
properties in Australia's strongest property markets.
Do you have $85,000 saved in cash or equity? Start your investment journey with us
With $85,000 in savings or equity, you can begin or grow your investment portfolio with high-growth properties in Australia's strongest property markets.
Brighton
Brighton is a prestigious bayside suburb that continues to attract wealthy buyers. Brighton is one of Melbourne’s most affluent neighborhoods with median house prices of about $35 million. Investors are drawn to this suburb despite its high price point because of its solid growth potential and stable property market. Brighton witnessed a robust increase in the cost of houses and apartments during the relevant quarter.
Because of the suburb’s reputation as a blue-chip area and the high level of buyer demand quarterly median prices also increased. For such a posh neighborhood rental yields are strong and weekly rents for houses renting in Brighton are highly sought after. Brighton’s proximity to Melbourne’s parks beaches and top private schools also guarantees continued demand and consistent growth in property values for its residents.
Additionally, Brighton offers residents easy access to Melbourne’s beaches, parks, and some of the best private schools in the country, ensuring ongoing demand and steady property value appreciation.
Moonee Ponds
A mix of modern apartments and period houses can be found in Moonee Ponds a growth suburb. With median house prices currently at $1. 77 million this community which is 7 km northwest of the CBD has seen consistent price growth in recent years. Excellent transport options shopping and a vibrant dining scene are the main reasons for its popularity.
Moonee Ponds is a top performer in the Melbourne property market and there is a lot of demand for its rental market. Due to its relatively low median unit prices when compared to surrounding suburbs, Moonee Ponds has grown in popularity among first-time and investment buyers alike. This suburb presents a good opportunity for long-term property investment due to its excellent schools and a steady stream of new residents which is expected to drive up property prices.
Parkdale
Melbournes’ hidden gem is Parkdale which is situated along the Nepean Highway. Being close to the beach but unable to afford nearby suburbs like Brighton it has a median house price of $1. 44 million makes it a more cost-effective choice for purchasers. Parkdales long-term prospects are bright because of its family-friendly atmosphere top-notch schools and close proximity to the coast even though it has slow growth in prices.
Investors are particularly attracted to Parkdale’s high rental yield and relatively low vacancy rates. Houses in Parkdale offer potential returns, especially for those targeting the rental market, which has seen increased demand from families and professionals looking for convenient access to both the city and the coast.
Melbourne property market forecast 2024
The Melbourne property market in 2024 is expected to continue its trajectory of solid growth, particularly in the outer suburbs where affordability and infrastructure development are key drivers. While interest rates are likely to remain a point of concern for some investors, areas with affordable Melbourne house prices and strong buyer demand are expected to perform well.
In terms of quarterly median prices, outer growth suburbs like Melton West and St Albans are expected to see price increases as population growth continues to push demand higher. Meanwhile, inner-city suburbs such as Brunswick West are likely to remain stable due to their established infrastructure and proximity to the CBD.
The rental market is also set to remain strong, with weekly rents in desirable areas such as Burnside Heights and Ferntree Gully expected to rise. Low vacancy rates in these areas signal ongoing demand from tenants, ensuring that rental yield remains attractive for investors.
Do you have $85,000 saved in cash or equity?
Start your investment journey with us
With $85,000 in savings or equity, you can begin or grow your investment portfolio with high-growth
properties in Australia's strongest property markets.
Do you have $85,000 saved in cash or equity? Start your investment journey with us
With $85,000 in savings or equity, you can begin or grow your investment portfolio with high-growth properties in Australia's strongest property markets.
Why choose the investors agency for Melbourne property investment?
Using data-driven insights and individualized strategies we at The Investors Agency are experts in assisting investors in navigating the ever-changing Melbourne property market. Using metrics like median house prices, rental yield, and, population growth as a guide our team of in-depth analysts finds high-potential growth suburbs that present the best opportunities for property investment. Whether you’re looking for strong rental yield, median house prices, and population growth we take the time to understand your financial objectives and adjust our recommendations accordingly.
We make sure you are positioned to maximize your returns even in a changing market where changes in interest rates and property prices are having an impact by utilizing our experience and market knowledge. Furthermore, we offer continuous assistance during your investment journey covering everything from choosing properties to managing your portfolio to guarantee the long-term performance of your investments. With our advice, you can make risk-free investments in Melbourne suburbs that complement your financial goals while ensuring strong growth potential. Selecting The Investors Agency entails acquiring a reliable ally committed to your triumph in the fiercely competitive property market.
Key Takeaways
Investing in Melbourne’s property market offers immense growth potential whether you are targeting established inner-city areas or emerging outer suburbs. A combination of affordability a robust rental yield and potential for future capital growth can be found in desirable suburbs like Brunswick West, Melton West, St Albans, Burnside Heights, and Ferntree Gully. Investors can maximize returns by making well-informed decisions by knowing the factors that affect property prices such as population growth buyer demand and median house prices. Choosing the ideal suburb is essential to taking advantage of Melbournes’ dynamic property market as the city grows and changes. Your real estate investments have the potential to prosper in 2024 and beyond with proper planning and professional advice.
FAQs
Which Melbourne suburbs are going up in value?
Suburbs like Brunswick West, St Albans, and Melton West have shown steady property value increases due to their infrastructure, affordability, and strong buyer demand.
What are the best suburbs to invest in Melbourne under $500k?
Suburbs such as Melton West and St Albans offer affordable entry points with median house prices under $500k, making them ideal for first-time investors.
Which suburbs in Melbourne have dropped in value?
Some outer suburbs have experienced slow growth, but key areas like Melton West and Burnside Heights continue to show resilience.
Where to buy property in Melbourne in 2024?
In 2024, suburbs like Burnside Heights and Ferntree Gully are expected to see solid growth, driven by increasing infrastructure development and strong rental demand.
Which is the fastest-growing suburb in Melbourne?
Melton West and St Albans are among the fastest-growing suburbs, thanks to their affordability, ongoing infrastructure projects, and strong buyer demand.
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