SQM Research’s Housing Boom and Bust Report 2016 predicts that Melbourne’s property market is poised to overtake Sydney’s in 2016, with a rise in housing prices of between eight and 13 per cent forecasted for Victoria’s capital.

Now could be the perfect time to buy an investment property in Melbourne with an ongoing robust housing market and rising housing prices tipped for the capital in 2016 by respected property analyst Louis Christopher.

Here are ten top performing Melbourne suburbs to consider for your next investment.

Depending on your financial goals and personal investment strategy we’ve divided up our top Melbourne suburbs worth considering based on:

  • areas with solid rental yields for investors looking for income producing properties,
  • suburbs with good 12-month growth rates for investors looking for prospects with strong price growth
  •  and affordability, for investors looking to snap up a bargain.

The statistics presented, including median house price (MHP), 12-month growth and rental yield (RY), are from CoreLogic RP data accessible via Your Investment Property‘s Suburb Profile Reports.

10 Melbourne suburbs to add to your 2016 watch list:

Good annual growth

Mount Waverley

Stats: $1.96 million MHP, 45.28% 12-month growth and 1.95% RY.

Drawcards: Family-friendly, 16km from the CBD, large block sizes, golf club, cinema, good public transport, schools, parks and shopping centre.

 1/22 The Highway, Mount Waverley, VIC. 1/22 The Highway, Mount Waverley, VIC.

Box Hill South

Stats: $1.10 million MHP, 32.12% 12-month growth and 2.08% RY.

Drawcards: Suited to young families, under 20km from the CBD, good for schools and childcare, golf course, healthcare facilities, close to parks and reserves.

Balwyn North

Stats: $1.70 million MHP, 21.41% 12-month growth and 1.68% RY.

Drawcards: Under 17km from the CBD, family-friendly, good schools and parks.

Solid rental yield

Melton South

Stats: $244,000 MHP, 4.72% 12-month growth and 5.65% RY.

Drawcards: Affordable, train station, family-friendly, schools, childcare, Victoria University campus, fast internet and golf course.

 10A Connel Drive, Melton South, VIC. 10A Connel Drive, Melton South, VIC.

Wallan

Stats: $345,000 MHP, 1.47% 12-month growth and 4.97% RY.

Drawcards: Train station, suited to families with kids and retirees, small town feel and good schools.

Carrum Downs

Stats: $360,000 MHP, 5.03% 12-month growth and 4.91% RY.

Drawcards: Good schools and childcare, parks and dog parks, shopping centres, library, close to the beach and Peninsula Link.

Mooroolbark

Stats: $516,250 MHP, 10.29% 12-month growth and 3.88% RY.

Drawcards: Suited to young couples and young families, large block sizes, fast internet, close to the Yarra Valley and Dandenong Ranges, indoor swimming pool, good schools, parks, public transport, dining and shopping.

Affordability

Melton

Stats: $249,000 MHP, 3.75% 12-month growth and 5.43% RY.

Drawcards: Affordable, large blocks, public transport, shops, suited to families and retirees, schools, childcare, Victoria University campus, fast internet and golf club.

 74 Scott Street, Melton, VIC. 74 Scott Street, Melton, VIC.

Officer

Stats: $380,000 MHP, 17.11% 12-month growth and 4.79% RY.

Drawcards: Affordable, good schools, family-friendly, public transport, close to shopping centres and freeway access.

Frankston

Stats: $405,000 MHP, 9.46% 12-month growth and 4.30% RY.

Drawcards: Affordable, beachside suburb, bay views, family-friendly, Arts Centre, shopping centre, restaurants and cafes, proximity to the Mornington Peninsula, parks, walking tracks, good medical facilities and schools.

If you’re a first time investor or rentvestor check out our forum on Advice for rentvestors in Melbourne and our article on the Pros and cons of rentvesting.

Happy house hunting!

Author

Larissa Gardner
Larissa Gardner is the Marketing Manager at arguably Australia’s best looking real estate website homely.com.au. With a superb devotion to product innovation, user-centred design and innovative marketing platforms for real estate agents, homely.com.au helps millions of Australians find their next home.

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