Why investing in Melbourne’s real estate is a good idea

Real estate investment is considered a safe option for those interested in growing their net worth.

Over the last couple of years, Melbourne has undergone tremendous changes and this has had a direct positive impact on property investments. Here are four amazing reasons why investing in Melbourne’s real estate is a good idea.

High returns on your investment

Property values in Melbourne are affordable and considering the high demand in most parts of the city, it is predicted that an investor is able to recoup the cost of the investment within a good period. In addition, unlike other cities such as Sydney, properties continue to show more value, thanks to the high price level. If you invest in any kind of a property, there is likelihood that you will be able to recoup your costs and profit within a short period. Take for instance, in 2015, the median sales price for a house in Melbourne was $1,115,000.This represents a growth of 201.4% when compared to the same period in 2001. In addition, this represents an annual growth rate of 24.7 percent. These figures are very impressive and make it worth investing your money in an investment property, especially if you are interested in a long-term investment opportunity that helps you grow your net worth. However, property prices are at a premium in many inner and blue chip suburbs of Melbourne-with a distance of up to 8 kilometres from the CBD. Investors who want to benefit from the ripple effect should consider buying from the middle ring suburbs that are more affordable.

Pent-Up Demand

In the long run, it has been noticed that the demand for real estate increased considerably. Although it is estimated that the demand in the inner city is likely to remain low due to oversupply, this problem is most likely to last in the short run. This is the case in inner areas of Melbourne such as the Central Business District and the Docklands. On average, 1040 visits are made to a vacant house in Melbourne by potential tenants, according to realestate.com.au. This is clear evidence that the demand for housing units in the city will always remain high.

High Consumer Confidence

Melbourne provides an exceptional level of assurance with regard to consumer confidence. There are many factors that can boost investor’s confidence in Melbourne and among them are growth prospects, better returns on investment and great pricing. The availability of affordable financing options makes property investment options in Melbourne a fantastic investment opportunity.

Fast Growing Population

The population in Melbourne continues to grow much faster than adjacent cities, but this is with the exception of Brisbane and Perth. This will increase demand for quality housing units and investments in the end. The city’s population is about 2% is higher than the national average of 1.8%.


Melbourne continues to offer property investors strong returns for their investment. One of the key factors which makes Melbourne a preferred destination for property investment is its fast population growth. Without doubt, you can get the best returns by investing in Melbourne’s real estate.