To give some insight on where potential investors should keep their eyes peeled, Urban.com.au has compiled a list of what they think will be the best suburbs for property investment in Melbourne in 2019.
Why buy investment property in Melbourne?
As Melbourne continues down the path of becoming Australia’s largest city by population, investors are looking for the opportunities wherever they can get them. The new year is nearly upon us, and you can expect the Melbourne property market to heat up as prices remain low (and possibly drop further), and the many developments bring new sections into the limelight.
What are the next Suburbs to boom in Melbourne?
When looking to invest in Melbourne, it may come as no surprise that Melbourne CBD is set for significant development with many infrastructure projects at state and local levels to account for the expected surge in population over the coming years.
There will be a significant upswing in hotel and apartment complexes including West Side Place, Queens Place and By The Gardens which will offer a range of investment opportunities in an area that should not struggle to find tenants. The Bourke Street South development will also provide more retail and apartment options adding yet another drawcard to the already busy heart of Melbourne.
The city, which has seen a slight dip in median house value is poised for a boom based on the current population growth rate. Six million people are expected to call Melbourne home by 2025.
Southbank will soon dominate the Melbourne skyline with its numerous high-rise vertical living options, while also designing itself as a community hub. Southbank currently has a median rental price of $550 per week with a median sale price of just over $800k.
The future home of Australia’s tallest buildings including Australia 108 (317m), One Queensbridge Street (323m), and Southbank by Beulah (356m) will make the current winner of the height competition, the Eureka Tower (297m) soon look like child’s play. Investors who like rooms with a view won’t find a more spectacular one than from the apartments on offer in these beauties.
South Melbourne is another one of our picks for the best suburbs to buy an investment property in Melbourne in. The area is slated for a slew of apartment complexes along Albert Road, Eastern Road, and Dorcas Street. At this point, you may be reading the word ‘apartment’ a lot and getting worried, but have no fear of an oversaturation as Melbourne is projected to push past five million people in the next three years.
South Melbourne will also see significant commercial development along Moray Street creating more office space via low to mid-rise developments making it an ideal living location for those who want a short trek to work. This will continue the upward swing with South Melbourne experiencing a 26.4 per cent growth in median house prices over the last five years.
Next on the high-rise living Melbourne property investment list is the somewhat surprising Footscray. The area is scheduled for a significant cultural overhaul as the suburb that feels like a country town joins its surrounding inner-city cousins in the vertical living game.
In fact, Footscray may be the best value-for-money investment on offer right now as the suburb has yet to see a lot of the change that will inevitably head its way. For now, Footscray feels slower, old-fashioned and simple, something that will be a distant memory in a few years.
As the classification of ‘inner-city’ begins to spread outward from the Melbourne CBD, West Melbourne will become the next area for modern-village living. Vacancy rates in West Melbourne have remained below five per cent in 2018 with some of the lower figures also being the most recent.
Public transport will be the key driver for the rise in popularity in the west for Melbourne property investors with an extension of trams heading along Spencer Street, the next go-to spot for dining, bars, and retail.
While the significant growth that Melbourne is prepping for certainly spells good news for the suburbs mentioned above, there are several other regions and outer-suburbs that will no doubt feel the repercussions of substantial population growth as well.
We hope this analysis of the best suburbs to buy investment property in Melbourne has helped shed some light on your property investment strategy for 2019.