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Is Melbourne’s property market the most investor friendly in Australia?

There has never been a better time to buy an investment property in Melbourne. There are a number of quality apartment towers in Melbourne that are delivering investors excellent returns, and compared to Sydney are on average more affordable. In addition, recent fixed interest rate drops from the big four banks have made borrowing cheaper and therefore buying far more affordable, bridging the gap between rental repayments and loan repayments and in turn saving you money.

Sydney and Melbourne are Australia’s two most popular cities for property investors. However, when compared to Sydney, Melbourne achieves lower median unit prices, higher rental yields, lower demand per sales property and boasts a strong rental market. This means that investing in Melbourne apartments is not only more affordable, but in many instances far more lucrative.

Statistics

 

Sydney

Melbourne

Median Unit Price

$750K

$428K

Rental Yield

4.9%

5.5%

Rental price % of sale price

0.93%

1.06%

Demand (visits per property)

317

132

Estimated cash flow

$43/mo

$266/mo

* Sales statistics are based on median prices for 1, 2 and 3 bedroom units between 1st of March 2014 to 23rd of March 2015 as reported by RP Data Pty Ltd trading as CoreLogic.
* Rental statistics are based on median prices for 1, 2 and 3 bedroom units between 1st of April 2014 and 14th of April 2015 as reported by realestate.com.au.

"The key to investing successfully in Melbourne’s property market is doing your homework."

Those investors who spend the time talking to real estate agents and researching specific towers and how the apartments within them have performed over the past five to ten years typically make more money on their property compared to those who don’t spend the time researching.

Melbourne’s market is currently made up of apartments ranging in quality. Towers of a high quality, with excellent resident amenity, well designed apartment spaces, views and close proximity to infrastructure such as Verve, Milano and Zen have delivered purchasers with annual capital growth over the past two to seven years of over 5% with a vacancy rate of less than 1% in most cases. This statistic significantly outperforms the average market vacancy rates and offer investors consistent rental returns and in turn good monthly cash flow, on average over $200 a month more than Sydney investors.

Melcorp Property manages a significant number of properties in these towers as well as two world-class brand new residential towers; Prima Pearl and Abode318. Currently we have waiting lists of prospective tenants looking to lease in these towers, and have already seen our clients’ property values increase from their off-the-plan sales prices in properties that settled less than one year ago.

Please call Melcorp on 9663 1117 or email info@melcorp.com.au to book an inspection or ask for more information on Melbourne’s investor friendly property market.


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