Melbourne is a truly magnificent city to live, work, and study in. So it should come as no surprise that the property investment market here is booming!
In 2017, Melbourne was once again ranked the world’s most liveable city by the Economist Intelligence Unit’s (EIU) Global Liveability Index – an accolade we’ve received seven years running. Yep, that’s right; SEVEN YEARS IN A ROW!
The Melbourne housing market has shown the highest long-term rate of capital gain. This has also caused housing affordability to sky-rocket, pricing many new home owners out of the market and into the outer-suburbs. But is that a bad thing? Melbourne has amazing inner city and outer city suburbs full of character.
Before we jump into the best suburbs in Melbourne to invest in 2021, make sure you are ready to be investing. We have a great article about things to consider when buying an investment property on our blog.
This article is based on our own opinion. William Huxley is not to be held responsible or liable for any decisions made based from this article. As always, please seek professional guidance before making any financial decisions.
Investing in Thornbury
High owner occupancy creates strong market conditions.
Thornbury is an inner northern suburb of Melbourne located 7km from Melbourne’s CBD. The bustling heart of Thornbury village runs through High Street, sandwiched between Merri Creek and Darebin Creek.
The property market is ready to burst with a high demand for period homes close to the lifestyle offered on High Street. Young families priced out of Northcote are coming into this area in droves.
With a 6.4% population growth in the past 5 years, there is no slowing down for this once slow suburb. 55% of the market is owner occupied, which creates strong market conditions, as owner occupiers are the ones buying emotionally and pushing the prices up.
With a predominant age group between 30-39, young families and professionals in the prime of their working life are pushing prices up in the area.
REIV showed a 10% price growth in the December quarter of 2020.
Want to learn more about living in Thornbury? Check out our Thornbury Guide: Reasons to live in Thornbury.
Investing in Brunswick
An ideal lifestyle driving demand.
Brunswick is a laid-back multicultural suburb popular with a young, alternative crowd, and known as a destination for live music, upbeat pubs and beer gardens. In the area’s heart, Sydney Road has Middle Eastern and Mediterranean eateries, offbeat shops, shisha lounges and cafes along its considerable length.
The lifestyle continues to get better in this suburb, and subsequently, so does the demand.
You don’t get much for your money in this area, but strong demand and low supply means this is likely to be another good year for this wonderful suburb only 6km from the CBD.
Brunswick has had a big burst of population with a 7.6% increase in the past 5 years to over 25,000 people. A sluggish return over the past couple of years, it seems like this suburb is ready to burst in price. The annual return to December 2020 was 4.2% according to the latest REIV report.
Investing in Bellfield
A tightly held suburb destined to pop.
A little known suburb less than 10km from the Melbourne CBD. Adjoining blue chip suburbs of Ivanhoe and Thornbury, it is starting to get very popular due to its proximity to services for young professionals and families.
Bellfield is a tiny suburb of only 598 dwellings, so it is very tightly held for a suburb less than 10km from the CBD.
There were only 9 houses for sale in the past 12 months!
Investing in Reservoir
A big population with a growth rate to match.
Reservoir is a beautiful suburb with all the access you might need. It’s close to shopping centres, hospitals, medical centres, schools, cafes, restaurants, universities (RMIT and La Trobe), markets, parks and leisure centres, with easy access to the ring road (Homely).
The area is rapidly gentrifying with plenty of new developments popping up all over the suburb, making large blocks even scarcer, moving forward.
Providing exceptional value for its proximity to the CBD and surrounding services, you can still buy a substantial home on a big block in this area for under a million dollars. You can’t say the same for nearby areas.
Reservoir has a big population of over 50,000 people, with a growth of almost 6% in the past years. This has to put pressure on property values!
Median house value is $786,029 (Core Logic), which is a tremendous value for being only 12km from the Melbourne CBD. This won’t last long with the latest December quarterly data showing a rise of almost 12% across three months to December 2020.
Investing in Viewbank
A great investment for property and family.
Viewbank is a very green suburb located 15 km north-east of Melbourne’s CBD. A strong performer with the ever popular Viewbank College. The next 12 months looks set to be a strong one, with eager family buyers starved for stock through the past year.
The school’s performance continues to bring in new students and families into the area. In 2019, its better education academic performance index showed a close to perfect 94.
The population of Viewbank in 2011 was 6,730 people. By 2016 the population was 6,920 showing a population growth of 2.8% in the area during that time.
The average length of ownership lays at 19 years, indicating the turnover is very slow in this area, making it very slim pickings for buyers.
If you are in the market to buy an investment property in Melbourne, give us a call and we would love to help you find the perfect property.
Want to read more? Check out some of our other posts:
- Best Suburbs In Melbourne To Invest In 2021
- 5 Things To Consider When Buying An Investment Property
- Rentals Vs Airbnb: Using Airbnb As An Investment Strategy
- 5 tips for buying a property in a hot market
Or some of these great articles: