News

Melbourne property continues to perform

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

$768K

$436K

Rental Yield

4.7%

5.4%

Rental price % of sale price

0.91%

1.03%

Demand (visits per property)

333

117

Estimated cash flow

$473/mo

$502/mo


* Sales statistics are based on median prices for 1, 2 and 3 bedroom units between 1st of May 2014 to 23rd of May 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 May 2014 and 14th of May 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 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.

Like all property markets, Melbourne has a mixture of good quality and poor quality apartments.

Melcorp have sold over 50 apartments in the recently completed Prima Tower in Southbank. The sales team have delivered investors capital gains of an average of 6% since their off-the-plan settlement less than a year ago. Typical growth in Southbank is only 0.5% which highlights the importance of choosing the right tower and the right real estate agent.

Melcorp specialise in inner-city apartment towers. We consistently deliver our clients capital gains that far exceed the market averages in new and established apartment towers. Call us today on 9663 1117 or email info@melcorp.com.au to speak with a sales agent and discuss your personal situation and let us find the perfect property for you.

 

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