Melbourne Property Investment Update
Investing in real estate in some of Melbourne's more affordable neighbourhoods can yield fantastic returns on your capital. There are a number of high-performing neighbourhoods that are also affordable; these suburbs are great for a savvy investor or start-up portfolio since they have rapid growth rates, low entry prices, and decent rental yields.
If you are looking for areas to invest in Melbourne, our list contains everything from student hotspots to family-friendly nooks, and it might help you find exactly what you're looking for.
Would you like to speak to a specialist? Book a complimentary discovery session by calling: (03)999 81940 or emailing team@klearpicture.com.au.
SOUTHBANK
Melbourne's premier cultural destination is Southbank. The National Gallery of Victoria, Melbourne Recital Centre, Arts Centre Melbourne, the Australian Centre for Contemporary Art, and other attractions may be found on Southbank. It also has some of the city's best restaurants, as well as Crown Melbourne.
The inner city centre of Melbourne has a population of roughly 29,450 people, which is predicted to double to 59,900 over the next 20 years.
As a result, there is far more property development activity in Melbourne CBD than elsewhere in the greater metropolitan area, with the majority of these constructions consisting of high-density high-rise apartment buildings.
Located immediately to the south of Melbourne's Central Business District, Southbank is presently home to more than 9,000 individual houses, the vast majority of which are family units (45 percent ).
It is anticipated that the number of residential properties would rise to more than 26,000 units over the course of the next 20 years.
Southbank is still the neighbourhood of choice for a good number of residents, particularly renters.
The fact that the average vacancy rate fell from 11.4 percent in July 2017 to 9.8 percent after a year demonstrates that the average weekly rent rate of $550 had no impact on the demand from tenants. In addition, investors see an average return of 5.2 percent on their investments. The rising cash flow demonstrates that investments in this field have the potential to yield handsome returns and that the market stock can be filled in an appropriate manner.
This inner-city neighbourhood of Melbourne has had a considerable increase in the number of high-rise flats as a result of the fact that it is one of the most populated areas in the city. Southbank is considered to be one of the most important business districts in the Greater Melbourne area, and it is the location of a number of significant organisations. A riverfront shopping zone that provides service to Southbank and is home to Southgate Restaurant is located there.
BURWOOD
You get more for your money here because to the convenient access to public transit and the low prices.
Brick veneer was all the rage in the 1950s, when a new generation of middle-class Australians were moving into Burwood and the neighbourhood was being subdivided.
Long-term homeowners in Burwood are selling their homes, which has resulted in the construction of new townhouses and apartment buildings to meet the increasing demand. A younger and more international demographic is moving in, and they are looking to take advantage of the excellent public transportation, the greenery of Wattle Park and Gardiners Creek reserve, and the better value for money than some of its older, leafier neighbours. Most importantly, they are looking to take advantage of the high-quality education that is provided by Deakin University and Presbyterian Ladies' College.
There are 15,027 people living in Burwood, and the median age range is between 20 and 39 years old. Additionally, 33.72 percent of the city's population calls rental accommodation home.
The median asking price of a house currently sits at $1,165,000, reflecting a decline of 6.80 percent over the course of the past year and an increase of 20.10 percent over the course of the past two years.
In Burwood, a house may be rented for a typical price of $495 per week, with a rental yield of 2.20 percent. The number of houses and townhouses now available on the market has increased by 1.45% since this time last year, and the typical amount of time it takes to sell a house or townhouse is 113 days. The average listing price for a unit is currently at $489,500, reflecting an increase of 0.92 percent when compared to the previous year. The typical length of time it takes to sell an apartment is 342 days, while the usual rent in Burwood is $380 per week, which results in a rental yield of 4.03 percent.
GLENROY
An emerging suburb that has seen its popularity grow over the years is Glenroy, which can be found 13 kilometres from the central business district of Melbourne. This is due to the increase in medium-density buildings, which are popular among first-time home buyers and young couples. Additionally, this is due to the area's residential facilities and its proximity to the central business district.
There are 22,245 people living in the community of Glenroy, which is located in Victoria's Moreland Region. Of that total, 31.42 percent of its residents are tenants in rented homes. The current median listing price for houses is $630,000, which represents a change of -10.00 percent over the course of the past year and 5.00 percent over the course of the past two years.
The median rental yield in Glenroy is 3.30 percent, and the median weekly rent can be found in the city at $400. Since this time last year, there are now 48.78 percent fewer houses and townhouses available for purchase, and the typical amount of time it takes to sell a house or townhouse is 108 days. There was a 0.22 percent increase from the previous year to the mean listing price of $450,000 for condominiums and apartments. The typical length of time it takes to sell a home in Glenroy is 95 days, while the median rent there is $360 per week, which results in a rental yield of 4.16 percent.
Glenroy, 3046 has outperformed its average annual property growth of 6.02 percent over the last five years, with a capital gain of -12.16 percent during the last 12 months.
According to data from the most recent quarter, the capital value growth rate for Glenroy property investors has grown in the short term when compared to the 5-year average yearly rate.
ROWVILLE
Located less than 30 kilometres south-east of the central business district, Rowville is a suburb that places a strong emphasis on family life and is characterised by the construction of large new estate homes. The neighbourhood is home to a variety of shopping districts, as well as verdant parks, golf courses, and a large number of educational institutions. It's in close proximity to both Westfield Knox, where you can do some serious shopping, and the Dandenongs, where you can do some serious getting away from it all.
The location of Rowville, in the south-east, makes it an excellent place to bring up a family. The homes are roomy, they are located on brand-new housing complexes that have expansive gardens, and there are several schools in the surrounding area. A multitude of retail opportunities and easy access to the Monash Freeway are just a couple of the reasons why Rowville is such a desirable place to live. The city is also home to a number of parks and golf courses.
A family-friendly suburb that is undergoing its own population boom is Rowville, which is located to the south-east of the city. Over the past few decades, there has been an explosion in the number of homes that are uniquely modern, with an emphasis on a number of bedrooms and expansive gardens.
Rowville is a desirable location for families of all ages due to the varied housing options that are available there; thus, the city is home to a large number of established families and couples.
It offers an easy combination of activities that can be done outside, a broad range of retail opportunities ranging from malls to markets, and a collection of schools for children to attend.
Modern, low-maintenance family living with plenty of room is Rowville's primary selling point, but the neighbourhood is also seeing an increase in the construction of chic new flats.
Rowville has 43 available rental units and 55 available for sale. Over the course of the previous year, the median value of a home was $810,000, while the median value of an apartment was $550,000. Rowville houses rent for $450 per week and offer a 2.9 percent annual rental return, while Rowville apartments rent for $400 per week and offer a 3.8 percent annual rental yield. If you are looking for an investment property, Rowville homes rent for $450 per week. During the past five years, the number of residences in Rowville has increased at a compound growth rate of 6.3%, while the number of units has increased at an 8.8% rate.
CARLTON
Located on the northern outskirts of the city, Carlton is a well-educated and literary centre that is home to Melbourne University, Carlton Gardens, and a Little Italy that has been around for a very long time on Lygon Street.
People from the surrounding community and students from nearby universities can be seen milling around Readings Bookstore, sipping coffee at Brunetti, and queuing up to watch the newest indie film at the Nova. This terraced neighbourhood is only a few minutes' walk from the centre of the city, and Lygon Street serves as the epicentre of the community there.
Student life is an important aspect of Carlton, which is why you'll find lively sharehouses nestled among the well-kept homes of long-time Italian residents and people who appreciate being able to walk through beautiful public gardens on their way to work. Carlton is also home to a large number of people who find it enjoyable to be able to stroll through the neighbourhood on their way to and from work.
The Carlton is not only appropriate for students, but also for self-sufficient people who are looking for the creature comforts that the inner city has to offer.
With its European background and cultured surroundings, the thrill of university life, and an appealing cityside setting, Carlton knows how to put the style in "lifestyle," and it does so with ease.
Traditional houses with two storeys The past of Carlton may be seen in the Victorian terraces that surround the central gardens and the excellent showcase buildings, while the future of Carlton can be seen in the contemporary apartment living.
During the course of the preceding year, the median price of a home in Carlton varied from $1,310,000 for houses to $347,000 for apartments. This was the case for both single-family homes and apartment complexes. Houses in Carlton rent for $700 per week and have a 2.8 percent annual rental return, while condos rent for $473 per week and have a 7.1 percent annual rental yield. If you are looking for an investment property, you should consider Carlton. Houses rent for $700 per week and have a 2.8 percent annual rental return, and condos rent for $473 per week and have a 7.1 percent annual Over the past five years, the number of residences sold in Carlton has increased at a compound rate of 5.5%, while the number of units sold has decreased at a rate of 5.9%.
Carlton is located just a few kilometres north of the Central Business District; nevertheless, the unit price is significantly higher in this area. It comes at an astonishingly low cost. In point of fact, RP Data and St. George Bank have just lately identified it as an affordable growth zone that, in comparison to its neighbours, has been disregarded.
Certainly, median unit prices in nearby Fitzroy, Collingwood, and North Melbourne indicate that Carlton has plenty of opportunity for expansion. It's worth noting, though, that Carlton's unit listings favour modest student studios and one-bedroom units, so when comparing like for like, Carlton units won't be as cheap as the median data shows.
However, the beginning price for student studios that earn $200 per week in rent is as little as $139,000, which is significantly lower than the average price of a student apartment. And with an average yield of approximately 7% in the area, this is a spot where you can play for rental returns while picking up an inexpensive flat that requires little care.
Aside from students, young families and professionals predominate in Carlton's rental market. At the time of the 2006 Census, renters made up an incredible 79 percent of the city's total population. According to projections made by SQM Research, this value will not change over the course of the next five years. About two percent of rental units are unoccupied at any given time.
The Central Business District (CBD), two institutions, and every imaginable amenity are all within a few of kilometres of the property, making this a wonderful location. There are a variety of eateries, as well as coffee shops, bookstores, and even a cinema complex. Carlton is a suburb of Melbourne, Australia, that is particularly well-known for its robust Italian community and is credited with pioneering the city's café culture.
KILSYTH
Kilsyth, which was named after a village in Scotland, is a suburb located in the Yarra Ranges region of Victoria, Australia, and it is witnessing a significant increase in population. The town of Kilsyth has a total population of 10,891 people, of which 18.16 percent live in rented accommodation.
Units are only on the market for about 30 days, indicating strong buyer demand. These houses are also offered at steep discounts.
When it comes to estimated capital gains experienced by property investors over the last three years, KILSYTH ranks 403rd in Victoria.
Furthermore, with the median home price in KILSYTH sitting at $681,077 and the average rent at $410, property owners may potentially earn a 3.13 percent increase in gross rental yield.
Property investors in KILSYTH have suffered a loss equivalent to -2.7 percent due to the decline in the median price of a home that has occurred over the course of the previous three months.
Over the course of 10 years, this suburb experienced a rise in population that was equivalent to 7.21 percent of the average capital gains or median property price increases seen in suburbs across the country.
PRESTON
The people who call Preston home are a dynamic mix of traditional natives who frequent the Preston Market and newer natives who like the arts, cafes, and cosmopolitan attitudes in the area.
A pleasant, cosmopolitan mix of families and individuals, as well as a combination of modern and old, characterises the neighbourhood of Preston, which is located less than 10 kilometres north of the city. It boasts a charming old-fashioned market, an outstanding educational system, and a thriving community arts scene, and it is located just next door to Thornbury, which is known for its cafe culture.
Although Preston is a well-established suburb with a lot of senior families who enjoy the spaciousness and huge homes, it is also attractive with young independent persons due of its mild rhythm and proximity to urban enclaves such as Thornbury and Northcote.
Because of its roominess, community spirit, and proximity to the city, Preston is home to a sociable combination of individuals and families. This is mostly owing to the town's accessibility.
The town of Preston has an electric energy and exudes a cosmopolitan air. After making your way around the bustling Preston market in search of fresh produce among the long-term locals, make a pit stop at the Hungarian Chimney truck for some chimney cake. While Northland is the place to go for all of your shopping needs, the bustling cafe culture that can be seen along High Street can be found in its delis. In addition, there is a growing arts culture in the community; therefore, you should put the Darebin Music Feast on your calendar.
Would you like to speak to a specialist? Book a complimentary discovery session by calling: (03)999 81940 or emailing team@klearpicture.com.au.
A genuine sense of community can be found in Preston because to the city's vibrant and diverse combination of modern cafes and traditional markets, arts festivals and strip shopping.
The property market in Preston features a wide variety of alternatives, ranging from grand, period houses to more modest residences added later and gleaming new apartments arriving on the scene.
The history of Preston can be seen in the clinker brick Art Deco houses and lovely weatherboard Californians that line the suburb's peaceful streets. Preston is home to a number of impressive public buildings. Downsizers can choose among flats and townhouses, in addition to larger single-family homes that were constructed at a later date.
The location and way of life in Preston are drawing an increasing number of designer apartments and converted warehouses.
A bustling and energetic suburb located immediately to the north of the city, Preston boasts an active community arts scene, an abundance of schools, and convenient access to public transit. Whether you are looking for a vintage home or a modern flat, a produce market or a fashionable cafe, Preston can turn it up to suit your style.
According to the suburb's average five-year and quarterly capital gains, the area saw growth that was around normal over the long term.
There are 32,851 individuals residing in the city of Preston, and of those people, 34.51 percent call rented housing their primary residence. The median listing price for homes is now $900,000, reflecting a decline of 3.75 percent over the course of the last year and an increase of 23.28 percent over the course of the past two years.
The bulk of other Australian suburbs have lagged behind the performance of this area in terms of the appreciation of property values. Investors report that the median price of a home has grown to $960,000 since last year.
The median rental yield for homes in Preston is 2.83 percent, while the median weekly rent for houses in Preston is $490. Since this time last year, there are 23.76 percent fewer houses and townhouses available for purchase, and the typical length of time it takes to sell a house or townhouse is 109 days. The median listing price for condos has increased to $439,000, representing a growth of 4.52 percent when compared to the prior year. The typical length of time it takes to sell a home in Preston is 141 days, while the city's median rent is $385 per week, which results in a rental yield of 4.56 percent.
The typical weekly rent for properties listed for rent in PRESTON has reached $490, which indicates a growth in returns of 2.65 percent when compared to the city's existing median price.
In PRESTON, there are an average of 23.67 real estate transactions per month, for a total of 284 per year.
In 2016, a total of 284 homes were sold in the town of Preston, placing it as the 340th most active market in the state of Victoria when considering the number of total real estate transactions.
The quarterly growth in the median property value in PRESTON, 3072, places it 437th among all of Australia's municipalities.
