Updated March 2020: Jump to original 2018 predictions for 2019.
Before we breakdown our five favourite suburbs to invest in Melbourne 2020 we wanted to take a look back at how our 2019 selections stacked up. Whilst the second half of last year saw a steady recovery for Melbourne the best results this year are looking to be further out from the CBD. This year we are liking the opportunities arising in the Eastern, Bayside and South Eastern Suburbs. A saturated apartment market is suggesting savvy investors look elsewhere if not already invested, however continuous population growth does imply growth will continue as demand outweighs supply.
Melbourne CBD – Since the recovery really started to sink in for Melbourne in the middle of last year we saw some very respectable growth for median unit prices in the CBD rising from $438,000 in June to a median of $474,000 for February 2020 based on Realestate.com.au data from the last year.
Southbank – Great news for investors in Southbank as predicted. With a 40k rise in median unit prices since mid last year. Supply is still outweighing demand and we are pinpointing better opportunities in other parts of the country but as a location that will always be attractive to tenants it will never be completely off the table.
South Melbourne – Entry into South Melbourne isn’t feasible for the entry level investor with a median of ov $1 million for a 2 bedroom house and prices have been pretty flat after the decline finally petered out mid last year. We aren’t recommending South Melbourne as a buy in option but definitely recommend holding if already in.
Footscray – With a drop of around 9% last year Footscray is still on our watchlist. Still in pre-gentrification it will be a matter of when not if for healthy growth in Footscray.
West Melbourne – West Melbourne took a big hit in the first half of last year and has had some changes that have made us more tentative to jump in. There is undoubtedly opportunity but is being outshone but other areas in melbourne and nationally.
As the sun sets on 2018, the dawn of 2019 looks to be shining brighter on some select Melbourne areas. Whilst we don’t have that elusive crystal ball we have been able to scour data from across the board to come up with our 5 best suburbs to invest in Melbourne 2019.
The Melbourne property market has seen an arguably inevitable cooling off through 2018, with many experts suggesting there is more to come in 2019.
Whilst it might not yet be the most profitable immediate investment in Australia, there are still a few key spots worth following. The first three may come as no surprise but let’s have a look at where to invest in Melbourne.
No prizes for guessing Number 1 the Melbourne CBD remains home to some of Australia’s most sort after real estate with significant development and a number of infrastructure projects at a state and local level planned to prepare for a large population surge predicted in the next 10 years.
With 6 million people expected to call Melbourne home by 2025, the population increase is pinned to be a powerful counterbalance to the current slide in property values. A number of high ticket hotel and apartment projects are on track for the near future and are sure to be attractive investment prospects.
Lucky Number 2, a dominant force in the Melbourne skylines, Southbank offers numerous hire-rise living options and continues to make a name for itself as a lifestyle hub. With attractive median rental and sale prices Southbank is certain to continue to attract investors.
Third and impossible to leave off is the ever-steady South Melbourne offering several apartment complexes slated for 2019.
Unlike the Sydney and Brisbane markets where apartment saturation are concerning some investors Melbourne’s projected population boom is very likely to keep demand high as we see prices return to former glory over the coming years. This is sure to ensure even apartment dense areas remain some of the best suburbs to invest in Melbourne.
We think it is very likely to be a slow slog and may not be the immediate choice but we are confident within 5 years Melbourne will be back on top.
Moving out for Fourth, iconic Footscray could offer some great potential profits as the sleepy slice of the past suburb is brought into the future with an inevitable upgrade to match it’s high living cousins.
Still at the pre-development stage, Footscray could present the best potential value-for-money investment as investors look to get in before the inevitable citification.
To round out the Five we look to West Melbourne one of the first recipients as the classification of “inner-city” begins to spread from the inner suburbs.
With vacancy rates less than 5 percent throughout 2018 it is an area that comes into the population boom with a high chance of capitalising on demand and one of the best suburbs to invest in Melbourne 2019 and beyond especially for those looking for more mid-range property. The biggest driver for investments is the planned tram extension into the West’s Spencer St, a natural candidate to be the next go to spot for dining, bars and retail.
By no means are these the only locations sure to capitalise on a nation wide population jump, but we at Australian Property come on a first come first served basis, so stay tuned as the situation “develops”.