The Melbourne property investment market is forecast to record stronger metropolitan capital growth than its capital city rivals because the net number of new residents arriving from interstate and overseas is higher than anywhere in the nation.
Melbourne property investment levels have had an exceptional couple of years for price growth, and with the ever increasing population growth rate of the Victorian capital 2016 appears to be a good time to invest in the Melbourne property market.
However, property investors need to be selective as some areas have have experienced exceptionally good returns whilst other locations not so well over the past 12 months due to issues of oversupply.
Prices are generally at a premium in many blue-chip inner suburbs (up to eight kilometres from the CBD) but investors have benefited from the ripple effect by buying in some of the more affordable middle-ring suburbs (10 to 15 kilometres from the CBD). These have show to offer much better value for money and affordability.
Melbourne Property Delivers Strong Returns
Victoria, in general, continues to deliver strong returns for property investors, despite concerns about the future stability of the Melbourne property market due to oversupply in some areas.
A key factor is Melbourne’s continuing strong population growth which has seen Melbourne’s population grow to 4.4 million. Melbourne is also gradually closing in on Sydney (4.8 million) as the nation’s biggest city.
The Melbourne investment property market has performed very well in recent years and, if you stick to property investing fundamentals and ignore opinions as to where the market is going, there is little doubt of a strong and solid return.
The Right Time or the Right Property to Buy?
Buying strong investment properties is more about asset selection rather than timing. Timing is impossible to consistently get right.
Don’t wait for the right time to buy. Wait for the right property to buy.
Like any real estate investment, locating and purchasing the right investment property in the right suburb requires careful consideration and research.
Buyers should look for suburbs that have strong positive attributes such as overall appeal, good public transport, good schools, shops, close to arterial roads and above all, invest in areas that are consistently showing a growth in population.
Affordability and Demand for Melbourne Properties
Melbourne's residential and investment property sector is performing well and many analysts predict it will continue doing so. Melbourne also continues to show good value when compared with the price levels in Sydney.
Caution, however, may be required in the short term with many leading economic forecasters believe there is an oversupply of new housing in Victoria especially in the inner city areas of Docklands and the CBD.
Melbourne’s population is now increasing at a faster rate than most other capital cities, with the exception of Perth and Brisbane, which will ultimately lead to an increase in the demand for housing and investment. Population growth is around 2% – well above the national average of 1.8%.
Making the Right Property Investment Decisions
At Property Investors, we offer a variety of investment options in this exciting city, from buying a house and land package to building a brand new home.
We are able to take care of the entire deal for you and, whether you live in the home or rent it out, it will be an excellent investment.
When it comes to residential investment property, speak to one of our Melbourne-based property specialists who will make sure you get all the relevant and necessary property market information in order to make an informed decision.