What are the best suburbs to invest in Melbourne? Property investment in Melbourne defied expectations in 2023, with prices experiencing respectable annual growth despite soaring interest rates and cost of living pressures.
For an investment to succeed, the purchase needs to be strategic and well-planned. Yet, many people spend the contemplating a new shoe purchase as they do a real estate investment! If you’re considering property investment in Melbourne in 2024, you need to understand the market.
What are the best investment suburbs in Melbourne in 2024? Where are the cheapest suburbs in Melbourne for entry-level investors? And what practical tips can help you achieve successful property investment in Melbourne? Read on to find out.
Property Investment in Melbourne
When researching the best investment suburbs in Melbourne it’s important to look beyond personal preferences. You may favour a quieter bayside suburb, but where is the market experiencing growth?
According to research by CoreLogic, the following council areas experienced the highest levels of growth in 2023:
- Monash, +8.5%
- Manningham West, +8.1%
- Whitehorse West & East, +7.0% & +6.9%
- Banyule, +6.1%
While properties in these suburbs all increased in value over the past year, it’s important to dig deeper when evaluating the best suburbs to invest in Melbourne.
The Best Suburbs to Invest in Melbourne
What makes an area ideal for property investment in Melbourne? It’s a combination of price, rental yields, vacancy rates and growth potential. With that in mind, here are some of the best suburbs to invest in Melbourne, according to industry experts:
Fawkner
Only 12 kilometres from the CBD, Fawkner is considered a family-friendly suburb with a median price of $525,000 for units and $758,500 for houses. This makes it more affordable than the average, while the location and amenities make it attractive to prospective renters.
Yallambie
Almost 90% of properties in Yallambie are detached houses, an appealing prospect for developers considering property investment in Melbourne. Yallambie maintains a strong 5-year growth rate, with the current median house price now $925,500.
Westmeadows
Westmeadows is a suburb where residents experience “country living” while still being close to the city. This makes it popular with families, where the median weekly rent is an affordable $450 for houses. The median house price is also below average at just $700,000 for houses.
Croydon South
The median house price in Croydon South grew 3.2% during the past year, reaching $880,250 for houses. Recommended as one of the best suburbs to invest in in Melbourne’s Outer East, it has over 90% detached houses and a rental yield of 3.3%.
What Are the Cheapest Suburbs in Melbourne for Investors?
For entry-level investors, what are the cheapest suburbs in Melbourne that show promise of future growth?
Melton
Despite a median house price of just $470,000, Melton has a gross rental yield of 4.34%, a vacancy rate of less than 1% and has seen property prices increase by 10% over the past 5 years.
Kurunjang
House prices increased by 17.6% over the past 5 years, yet you can still buy an investment property in Kurunjang for an average of $520,800. The average rent has increased by over 10% in the past 12 months alone.
Carlton
For an inner-city investment unit, it’s hard to go past Carlton as one of the cheapest suburbs in Melbourne. The median unit price is just $329,000 while the average rental yield is 7.32%.
Tips for Property Investment in Melbourne
What will help potential investors find the best investment suburbs in Melbourne?
- Do thorough research
- Compare recent sales data with nearby suburbs.
- Look for areas with growth potential.
- Monitor planned developments in prospective investment suburbs.
Talk to a Broker About Property Investment in Melbourne
Finding the best suburbs to invest in in Melbourne requires thorough research and expert advice. But for an investment to be successful, you also need the right finance. Ready to kickstart your property investment journey? Talk to our experienced brokers at Accession Finance today to find the best finance deals for property investment in Melbourne.
