Melbourne Property Market Research

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What Type of Property Should I Buy as an Investment in Melbourne?

What Type of Property Should I Buy as an Investment in Melbourne? 2560 1917 Andrew Stone

Melbourne’s property market has long been recognised as a vital player in Australia’s real estate scene. From charming inner-city terrace houses to sprawling suburban homes, its breadth and diversity champions endless investment opportunities. 

Of course, ‘endless’ is a bold claim, however, there’s plenty of evidence to back it up. 

Recent data from CoreLogic tells us that Melbourne’s property market has experienced an upturn in median house prices, with a 5.3% rise in dwelling values over the past year. And considering that Melbourne has recently become Australia’s most populous city, it has the right formula for future long-term growth. 

This surge in property values is driven by a few factors, including population growth and infrastructure development, both of which have positioned Melbourne as a prime choice for property investment. Despite economic and environmental impacts over the past few years, the resilience of the property market reflects its strong fundamentals and underscores its investment appeal. 

In Melbourne, the choice between investing in houses and apartments can greatly influence your financial outcome. Let’s further explore the investment potential of Melbourne’s property market as well as the financial implications tied to each property type.

The Role of Land Value in Property Investments 

While it may change from suburb to suburb, the initial prices of houses and apartments usually differ significantly. Houses, with their larger space and potential for land appreciation, tend to have a higher initial cost. On the other hand, apartments, although smaller, offer a more affordable entry point into the property market.

However, a Melbourne property’s value is intrinsically linked to the land on which it’s situated. Consider this: When you buy a property, you’re essentially investing in two components — the land and the building. While the building depreciates over time, the land typically appreciates. 

Current market trends show that established houses, especially those on large land parcels, offer substantial long-term capital growth. This growth is primarily driven by the underlying value of the land, which tends to appreciate more than the property itself.

Apartment or House: Which is the Smarter Investment?

When it comes to property investing in Melbourne, the house always wins. At Property Analytics, we purchase established houses on decent-sized blocks on behalf of clients who are seeking to increase their wealth.

But why the focus on established houses?

The answer lies primarily in their rarity and the high demand for such properties. In turn, these factors then work to drive up their market value. Unlike apartments, which can be rapidly developed in large numbers, the supply of established houses is limited. This makes them a more stable and potentially sound investment.

Houses are generally more expensive than apartments, and the rental yield you get from them is relatively lower. But, our analysis proves that houses make for far better investments over apartments because capital growth is more important to building wealth than rental yield.

The takeaway? Higher purchase prices and holding costs are the main reasons why property investors would consider apartments over houses.

With decades of buying experience, Property Analytics are your trusted buyer’s advocate in Melbourne. You can learn more about why we favour houses over apartments when it comes to property investments here.

Crunching the Numbers: Asset Appreciation vs. Cashflow

Wealth is created through asset appreciation, not through cash flow. In other words, you should prioritise capital growth over rental yield.

The most successful property investors recognise this truth, and invest in the type of properties that increase the most in value over time: houses. Land appreciates in value, whereas the dwellings that sit on land tend to depreciate in value. Think about why you get a property depreciation tax break when you rent out newly built properties? Properties with reasonable land content (e.g. houses or townhouses) experience significantly higher capital growth than properties that lack land content (e.g. apartments/units).

Most of us know this intuitively, but what does the data say?

  • Year-on-Year % Growth in House Prices of 10-15% has been common, whereas Unit Price Growth typically hovers around 5%
  • During Melbourne’s last growth cycle, from 2013-2018, House Prices increased far more than Unit Prices: from $548,000 to $921,000 (+68%) versus $484,000 to $619,000 (+28%).
  • Even allowing for the worst deflationary period in living memory, from late 2018 to mid 2019, house prices today are +60% higher than they were in early 2013; Unit Prices are +40% higher.

The 3 key metrics that every property investor should know:

  1. The Equity ($ Cash) Needed to purchase and retain a property investment – based on the Loan:Value Ratio and mortgage repayments made after rental income
  2. The Equity Gained through Capital Growth
  3. The Net Position – difference between Equity Needed and Equity Gained

In a common example, a house would have cost you about $120,000 more in 2012, and assuming an 80% LVR, that would mean you’d have had to stump up an extra $24,000 of your own cash at the time of purchase. And, because the rental yield of the house is lower than a unit, you’d have to tip in an average of $4500 per year to support the mortgage, compared to about $2400 for an Apartment.

But, because house price growth has been so much greater than Unit Price Growth, you would be far better off today – like $124,000 better off.

Invest smarter, not harder. Seek expert property investment advice from the best buyer’s agent Melbourne has to offer. 

What Type of Property Should You Buy As An Investment in Melbourne?

This brings us to the next point — strategic property selection. Investing to grow your wealth isn’t as simple as buying a house over an apartment. With the assistance of a buyer’s agent in Melbourne, in-depth research, strategy, and planning is the pathway to a smarter investment.

Regarding established houses, location is a key determinant of value. Look for properties in desirable neighbourhoods with solid infrastructure and promising future development plans. Consider local amenities such as schools, shops, and public transportation. These factors not only contribute to the property’s desirability but also its potential reliability.

Below is a list of the top ten most livable suburbs in the Greater Melbourne Area, according to RMIT’s 2022 Social Infrastructure Index – which rates popular suburbs according to factors like access to services like health, train stations, education and community centres. 

  1. Collingwood
  2. Fitzroy
  3. North Melbourne
  4. Carlton
  5. South Melbourne
  6. Carlton North
  7. Richmond
  8. Flemington
  9. Windsor
  10. Fitzroy North

As you can see, the list above is dominated by the inner North and its surrounding suburbs. If this isn’t your cup of tea, we’ve compiled a list of The Speediest Melbourne Suburbs for Real Estate Sales

Are you thinking about dipping your toes into Melbourne’s property market but don’t know where to start? Turn to Property Analytics, a seasoned buyer’s agent for Melbourne investment properties. 

Melbourne’s Long-Term Real Estate Investment Potential

How does the long-term value of houses compare to apartments? The evidence from Melbourne’s real estate market over the past seven years suggests a compelling case for houses. With a consistent growth trajectory that appears poised to persist according to current data and market forecasts, houses demonstrate their potential as a lucrative investment option.

If you’re seriously considering dipping your toes into the Melbourne property market, take the time to understand the basics, examine the metrics, weigh up the financial implications, and, most importantly, make an informed, strategically sound decision. Property investment, after all, is not just about short-term gains. It’s ultimately about building long-term wealth, and Melbourne’s market is one that could help you do just that.

Get in Touch with the Top Buyer’s Agent in Melbourne 

It’s clear there are investment opportunities popping up in all corners of the city. If you want to team up with experienced investors and buyer’s agents in Melbourne, just give Property Analytics a shout. They’re here to provide real help and guidance as you navigate the ever-changing property market. 

Aerial of Mornington Peninsula beach

Melbourne Property Prices: Which Suburbs Have Increased in Price Most in the Past 10 Years?

Melbourne Property Prices: Which Suburbs Have Increased in Price Most in the Past 10 Years? 2560 1919 Andrew Stone

Things change a lot in ten years, and the Australian housing market is not immune. This transformation has been marked by several key trends and shifts that have reshaped the way Australians buy, sell, and invest in real estate.

The pandemic, oversupply, sustainability, changing preferences and rapid price growth are just a few examples contributing to historical change. Not to mention the digitisation of the real estate industry, which grants buyers and sellers access to a landscape of information like never before. 

Even through all the ups and downs, one city has consistently and unsurprisingly outperformed the rest: Melbourne.

At the heart of the metamorphosis is a strong economy, steady population growth, and the city’s appeal as a prime location for both domestic and international investors. The demand for Melbourne properties has been further amplified by the city’s diverse range of housing options, which cater to a wide spectrum of buyers — from first-home buyers to seasoned investors. 

Growth in ballpark terms is always welcome news, but which suburbs have hit a home run? Let’s take a look at the Melbourne destinations where house values have essentially doubled in a decade. 

A Snapshot of a Decade of Growth

Over the past decade, the search for a better lifestyle has sent buyers flocking to the Mornington Peninsula. The sunny Melbourne suburbs dotting the area have emerged as hotspots for property price growth. These include St Andrews Beach, Dromana, Frankston North, Crib Point, and Sorrento, all of which have experienced substantial increases in property prices.  

However, it’s not just the appeal of these individual suburbs that have contributed to their growth. Broader market trends, city planning initiatives, and infrastructural developments also play a pivotal role. For instance, the expansion of the Mornington Peninsula region, a locale renowned for its wineries, beaches, and relaxed lifestyle, has had a ripple effect on its surrounding suburbs.

With all signs pointing to long-term growth, this has piqued the interest of those looking for their first or next investment property. 

No strangers to the tumultuous market, Property Analytics are licensed buyer advocates based in Melbourne. Reach out to us for a friendly chat about up-and-coming Melbourne suburbs. 

The 5 Suburbs Leading the Way  

1. St Andrews Beach, 3941

St Andrews Beach, a serene coastal enclave, has experienced a remarkable surge in property values over the past decade. This impressive growth can be attributed to its captivating coastal appeal and the ever-increasing demand for beachfront properties. With its close proximity to Melbourne’s CBD, this tranquil suburb has become a magnet for home buyers and investors alike. The result? A consistent demand that has propelled property prices to new heights.

Spanning a distance of approximately 3.1 square kilometres, St Andrews Beach is home to an abundance of park areas that account for nearly 37.2% of its total area. Beautifully kept parks and coastal living have both been major draw cards for families and home buyers. 

In line with overall trends on the Mornington Peninsula, the St Andrews Beach area has had the most substantial price appreciation over the past decade, with property values rising 145.6%. This remarkable growth cements its status as one of Melbourne’s most sought-after beachside suburbs. 

2. Dromana, 3936

Dromana has been one of Melbourne’s most popular holiday spots for some time, and demand for coastal homes on the Peninsula isn’t showing any signs of slowing down. The Dromana area offers easy access to the beach, as well as a great selection of restaurants, wineries and other attractions. 

Just over an hour’s drive from the CBD, this charming suburb combines the allure of a small-town atmosphere with the convenience of a larger city. Whether purchased for permanent residence, holidays or investments, it’s no surprise that Dromana has seen a consistent rise in property prices..

Over the past decade, Dromana has seen property values climb by more than 130%, cementing its position as a popular and competitive location for real estate investment. 

3. Frankston North, 3200

Frankston North has undergone a significant transformation over the past decade. From significant infrastructure projects to attracting a growing number of young professionals, Frankston North has witnessed a substantial uptick in property values. Its affordability, combined with its prospects for future growth, positions it as an attractive option for both first-time homebuyers and savvy investors. In the span of a decade, Frankston North has seen property values surge by an impressive 132%. This has earned it a reputation as a compelling destination for those seeking an evolving community with the potential for substantial returns on investment.

4. Crib Point, 3919

Now, turning our attention to Crib Point, we find a quieter suburb that has quietly but steadily witnessed an upward trajectory in property values. Its charm emanates from the fusion of a serene, idyllic setting with affordable housing options, making it a reliable choice for families and retirees seeking the quiet life. 

Spanning approximately 6.5 square kilometres, Crib Point features 12 parks, covering nearly 2.3% of its total land area. Green spaces, beaches and pockets of natural beauty are a winning formula for leisure and recreation.

Over the course of a decade, Crib Point has seen property values rise by over 130% and the promise of lasting returns on investment.

5. Sorrento, 3943

Last but not least, we have Sorrento. Renowned for its historic limestone structures and picturesque sandy shores. Sorrento has undergone a substantial surge in property values, owing to its fusion of historical significance, cultural richness, and natural splendour. 

Covering an area of approximately 7 square kilometres, Sorrento is full of excellent property opportunities, local amenities and a real community feel. This offers residents abundant opportunities for relaxation and recreation amid its picturesque beachside views.

Over the span of a decade, Sorrento has seen house prices soar by 121%, marking our fifth and final example of a Melbourne suburb that has doubled in price. 

Predictions for the Future

Looking forward, all signs point toward long-term future growth. Industry experts predict that the next decade will continue to see a sustained and steady incline in Melbourne’s property market.

However, the suburbs that will see the most significant price growth may not be the same as those that dominated the past decade. Factors such as infrastructure projects, changes in population demographics, and evolving buyer preferences will likely influence which suburbs emerge as the top performers.

For property investors, this presents both opportunities and challenges. On one hand, there’s the potential for high returns in suburbs poised for growth. On the other, there’s the risk of investing in areas that may not perform as well due to factors beyond their control.

If you’re an investor weighing up your options, it’s worth seeking the advice of a well-versed buyer’s agent for Melbourne’s property market. 

Pinpoint Your Investment Strategy with Top-Performing Buyer’s Agent in Melbourne

With so many suburbs and areas to choose from it can be difficult to know which ones have the most potential for the next ten years ahead. Collaborating with an experienced buyer’s agent in Melbourne is the first step to success. Together, we can work toward an investment strategy to secure your financial future.

Auction_Prices-Lines-Feature (1)

Why Auction Clearance Rates Are So Important to Watch in Melbourne

Why Auction Clearance Rates Are So Important to Watch in Melbourne 1289 828 Andrew Stone
Sign for residential real estate auction

Everyone is obsessed with Auction Clearance Rates in Melbourne!

Week after week, we have the media, real estate agents, and bodies like the REIV lining up to give us the stats.

You know how it goes. It’s “X% success from Y auctions” and “This week’s clearance rate of A% is B% higher than last week, month, or year”.

It all gets pretty tedious. But maybe there’s a reason why so many professionals focus intently on auction trends…

So, is it all just noise or is there something to clearance rates after all?

Well, you’ve already read the headline.

As you’re trusted property investment consultants in Melbourne, we’re going to tell you why auction clearance rates are important, but also what you can and can’t read into clearance rate statistics.

The Obsession with Clearance Rates Explained

If there’s one group of people who love crunching numbers, it’s real estate professionals.

Specifically, it’s commentators and data analysts in the real estate industry.

But the data that everyone wants – specifically house price data – comes with a lag. Commentators can’t provide meaningful weekly data about Median $ House Prices, but they can tell you about Auction % Clearance Rates.

And the thing is, clearance rates can tell you about property market performance and the direction house prices might be going, especially in cities like Melbourne and Sydney.

The Auction Clearance Rate is a percentage figure that tells you the proportion of properties that successfully sold at auction (although this definition can get fuzzy, as we’ll discuss later).

A high clearance rate (around 75%) may indicate strong market conditions, high demand for real estate, and rising property prices. When auction clearance rates are consistently around 75-80% you’re probably in a seller’s market.

A low clearance rate (around 60%) may indicate a sluggish real estate market, less demand for property, and the chance of dipping real estate prices. When properties consistently fail to sell at auction in the Melbourne market, you may be in a buyer’s market.

Auction Clearance Rates Indicate the Health of the Property Market

Brunswick is a suburb in Melbourne’s north that is, in many ways, representative of the broader Melbourne market. For the purposes of explaining the relationship between Auction Clearance Rates and Median $ Price Growth, we’ve looked at the sales history of Brunswick Houses since the turn of the century.

Over the last 17 years, Auction Clearance Rates for Brunswick Houses have averaged just under 79%. Median $ House Prices have increased every year but one (in 2011).

Looking at the graph below, we can see that auctions and prices are very tightly correlated. 

Auction Clearance Rates and Price Trends Graph

When Auction Clearance Rates are below average or declining, Year-on-Year (YoY) Median $ Price Growth is below average (9%) or trending downwards.

Said simply, this graph shows that auction clearance rates and house prices are moving in the same direction 72% of the time. Now that’s a correlation to pay attention to!

Auction Sales Lead to Higher Median Prices

The correlation between auction clearance rates and median house prices should be of no surprise to those who understand how auctions work.

Vendors determine the reserve price, effectively saying “I’m willing to sell at this price”.

The reserve price is arrived at by assessing market conditions, nearby comparable sales, and buyer interest over the course of the campaign. If proper analyses and professional advice are applied, the reserve price should be a reasonable estimation of market value.

When bidding at auction exceeds the reserve price, two things happen. The property inevitably sells, which increases the weekend’s auction clearance rates, and a new, more accurate market value is achieved.

So, higher clearance rates indicate that plenty of properties are selling above the reserve price.

Put enough sale prices together and you get a Higher Median $ Price for an area. When lots of properties are sold above reserve at auction, the Median $ Prices should rise.

The underbidders for each property will move on to other properties, and their assessment of market values will change based on recent results, leading them to bid higher next time!

So, high Auction Clearance Rates effectively act to stimulate the market by increasing vendor and buyer expectations. The opposite occurs with less auction success.

The Market Tends to Cool When More Properties Pass In

If only one or two parties are seriously interested in purchasing a property, then that auction rarely gets off the ground. In this scenario, the vendor’s reserve price is not met, and they have some serious decisions to make:

  1. Negotiate immediately with interested parties
  2. Move into a private sale campaign with a fixed price after already spending 6-8 weeks on the auction market
  3. Pull the property from the market entirely.

For options 1 and 2, the vendor has lost the leverage and prospective buyers are more likely to assess the property logically, with far less emotion clouding their offers. The ultimate sale price will almost certainly be below the initial reserve (read this article for more on bidding at auction and when a property is passed in).

If the vendor chooses option 3 and delists the property, then a clear message has been sent to the market that sale price expectations were too high. Whether consciously or not, active buyers will take that message on board and will proceed with more caution when considering other properties.

What Else Can Affect Auction Clearance Rates?

Back view of bidders raising their hands at a property auction. Auctioneer holding out gavel

Weekly clearance rate data does not make a trend, especially when that data is being affected by outside forces. When looking at auction clearance rates on a weekly basis, keep the following in mind:

  • Weekly clearance rate data can be delayed, meaning clearance rate results may not be accurate
  • Properties that are withdrawn from sale are sometimes erroneously counted in the clearance rate data
  • Sometimes, clearance rate data also includes properties that are sold before or after the auction, which muddies the water and inflates the data.
  • A range of other factors may also be at play, from interest rates to the number of competing auctions running simultaneously. Weather, major sporting events, and holidays can also impact auction clearance rates.

Other Limitations and Additional Auction Data to Consider 

  • The Melbourne Effect: Melbourne is known as the auction capital of Australia – and even the world. Outside capital cities and major centres like Melbourne and Sydney, the low levels of property auctions mean that Auction Clearance Rates are less statistically significant.
  • Property Type: When looking at clearance data, you also need to consider the types of property that are being auctioned. If it’s mainly inner city houses, house prices may be higher independent of clearance rates. If it’s mainly luxury properties, the clearance rates may be lower because luxury properties have fewer potential buyers and can be harder to sell.
  • Definitions and Reporting: As discussed above, the exact definition of a property that sells at auction will vary across the real estate industry, and some agents will be selective or late with the data they provide. This can impact the reliability of Auction Clearance Rate data.

Alongside Auction Clearance Rate data, some additional metrics to consider include:

  • Average days on market for properties sold at auction
  • Number of properties sold prior to auction (as a percentage)
  • How many auctions started with a vendor bid
  • The average number of active bidders per auction
  • Number of properties sold above reserve

Overwhelmingly, Prices Grow Most When Auction Clearance Rates Are High

Auction clearance rates aren’t the be-all and end-all, but the data is clear.

When house prices are rising more than usual, auction clearance rates are typically above average. Conversely, when prices are rising less than usual, auction clearance rates tend to be lower than average.

And it’s not just in Brunswick either. Across Melbourne, auction clearance rates have consistently been in the high 70s, and when they are higher than the same point in previous years, we see strong buyer demand from multiple bidders at auction. We’re yet to see a turn in that trend, but as the above analyses prove, it’s important to keep monitoring.

Alongside other data points, auction clearance rates can also give you insights into:

  • The current state of the property market.
  • The current state of the job market.
  • General consumer confidence.
  • The best times to buy or sell.
  • Whether you should buy/sell or hold.
  • The current lending behaviours of the big banks (availability of credit).
  • And more!

Understanding Auction Clearance Rates can help you get on the front foot with emerging trends. Whether you need a buyers advocate in Kew East or buyers agents in Templestowe Lower, Property Analytics can crunch all the numbers to help you make high-value investment decisions.

If you’re ready to develop or invest in real estate, have a chat with Andrew Stone from Property Analytics – your local property investment advisor in Melbourne.

Model house on top of a large pile of gold coins

Tips for Successful Real Estate Investing in 2023

Tips for Successful Real Estate Investing in 2023 1000 667 Andrew Stone
Model house on top of a large pile of gold coins

In my 2023 Melbourne Property Market Forecast, I told you what to expect from real estate in 2023. And in my property market trends piece, I identified the key trends that will define the market and what they mean for investors.

Now I’m here to share my tips for investing in real estate in 2023. Some of these tips will reinforce real estate investing fundamentals and others will be specific to what I see happening in this year’s market. But all of these tips are based on my years of experience as a Melbourne buyers advocate, property investment advisor, and real estate analyst, as well as the historical and emerging data that I use to make investment decisions every day.

My name is Andrew Stone from Property Analytics, and here are 10 tips for successful real estate investing in 2023.

1. Understand What Kind of Property Market You’re Walking into in 2023

Successful investors walk into each situation with their eyes wide open, and the 2023 Melbourne real estate market should be no different.

The property market has been incredibly disruptive and unstable for the last 2-3 years, with significant price rises in 2020-21 followed by a historic property price downturn in 2022.

Many experts are promising nothing but doom and gloom in 2023, and while certain changes will be a harsh reality, there are opportunities for investors.

The Melbourne property market in 2023 will be marked by:

  • Lower property prices – including further drops in the rolling 12-month median property price
  • Further interest rate increases
  • Inflating construction costs and further development delays

But this year’s market will also bring:

  • Greater stability in the property market compared to the massive swings we’ve seen in recent years
  • Interest rates will likely stabilise after some rises in the first half of the year. And stable interest rates – no matter the level they stabilise at – is a good sign for house prices
  • Strong demand in buying and rental markets. Expect increased rental demand for townhouses and apartments, and growing buyer demand for turnkey-ready houses and high-yield apartments
  • More investment-grade properties coming on the market – both unfinished developments and quality dwellings
  • Signs of a strong future for Melbourne’s property market, including returns to pre-pandemic migration levels and strong population growth.

See my property market forecast and emerging trends analysis for more information about the 2023 market. 

To summarise, there are many opportunities for real estate investing this year, both for first-time investors and those looking to bolster and diversify their portfolios.

Additionally, many Australians have three times more savings than they did at the start of the pandemic. If this applies to you, now could be the perfect time to act.

2. Audit Your Real Estate Investment Performance for the Last 12 Months

Now that you understand the market, it’s time to understand what you did right – and wrong – in the last 12 months. Consider all the investment opportunities that were open to you in 2022 and the property decisions that you made (or didn’t make).

Where were you successful in 2022 and what situations could have gone better for you?

When reviewing your performance, it’s important not to write off missteps completely or blindly replicate what has worked in the past.

As I just explained, the property market is changing. Your decisions to buy and flip property may have seemed sound when the market climbed by 30% during 2020 and 2021. But you would need to be much more discerning if you made the same decision now.

Similarly, your decision not to make an investment move in 2022 may have proved wise, but inaction in 2023 could be costly. If you’re ready to act, talk to a buyers advocate in Preston or Kew East about the best areas and properties to invest in. Consider making a move now before the market settles and prices start to rise.

3. Recommit or Renew Your Investment Goals for the Coming Year

Telling a real estate investor to set clear goals is investing 101, so I won’t labour the point. But I will tell you to set your goals based on the previous two points – what the market is doing now and what position you find yourself in after the last 12 months of investing.

Essentially, all investors should actively review their investment goals in line with the state of the market and their previous performance, rather than blindly recommitting.

Do you need to generate more passive income? There are opportunities in the 2023 market to secure rental properties that promise steady rental income and strong returns. It might be wise to secure this type of property to stimulate cash flow if you’re investing for the first time, or if you need to diversify your portfolio and alleviate your current debt position.

If you’re doing a bit of damage control, your goal might be to release some debt by selling off assets. If you have purchased properties with strong fundamentals, do what you can to actively add value to your investments before selling in 2023.

I will always tell my clients to keep one eye on long-term capital growth, as this is where you will see the greatest potential for massive wealth generation. Look for properties with a strong land-to-asset ratio that can be developed or renovated to add value. Make sure you pinpoint the perfect areas to buy, looking at factors like proximity to hospitals, universities, and other high-income-producing activity centres. Consider also the huge impact that favourable school zones can have on the future capital growth of real estate, but keep in mind that school catchment areas can and have been rezoned in the past.

4. Research Local Markets Like the Back of Your Hand

The idea of the “Melbourne Property Market” is a bit nebulous. Yes, there are trends and data points to paint a picture of what’s happening across the city, but it’s more important to understand what’s happening on a hyperlocal level.

This year, it will be more critical than ever to look at where your investment properties are located – or where you’re looking to invest – and understand what THAT market is doing.

Things like median house price, median unit price, average rental return and overall demand for housing can swing significantly between outer suburbs and inner suburbs, capital cities and regional towns. Sometimes, whether or not you’re in an attractive suburb, a buyer’s market, or a seller’s market can shift from one postcode to the next.

The deeper your knowledge about local markets, the more successful you can be in 2023.

5. Build Your Professional Network

Man touching a model house on a touchscreen that connects to many different contact points

But how do you build your market knowledge on such a specific, local level? You’re already a busy professional – you might have the means and funds to invest, but you don’t have the time or desire to make it your job.

If you’re stepping into the market in 2023 or you’ve been going it alone in the past, make this the year you build your real estate contacts.

Yes, real estate agents will bug you until your phone explodes. But the more specific information you give them and the better you get to know them, the more likely it is that they will point you towards your next investment opportunity. Just don’t take anything they say as Gospel Truth. They are the seller’s agent after all. 

You can also partner with a buyer’s agent if you’re looking to find a strong investment property or development site. These professionals can do everything from shortlisting properties that match your real estate strategy to helping you negotiate the sale.

The great thing about finding a good buyer’s agent is that they can be the connective tissue between all the other real estate contacts you need – from estate agents to town planners!

I know this because I am a buyer’s agent, and Property Analytics focuses on finding properties specifically for investment and development purposes.

6. Explore Off-Market Opportunities This Year

In 2023, an influx of quality dwellings and development sites will hit the market due to a combination of factors.

Many fixed rates will expire and revert to a much higher rate than investors and owner-occupiers expected. The result is overleveraged and overburdened property owners who will need to sell – many of whom can be considered distressed vendors.

At the same time, many developers have become heavily leveraged both due to changing economic circumstances and the ongoing delays and price hikes in the construction industry. These development projects remain profitable but may not be financially viable for the current owner.

All of this means there are opportunities and bargains to be had in 2023. Secure a middle-ring or inner-city development site, or find a quality investment property that’s ready to rent and appreciate.

To leverage the best available deals, you will need to look at off-market opportunities. Many homeowners, investors, and developers will be looking to unburden their debt quickly and quietly, which means they may want to avoid a full sales campaign wherever possible.

Proactively pursuing off-market sales will help you find and secure the best of these opportunities. You can find off-market deals by partnering with a well-connected buyers advocate in Brunswick, Northcote, and across Melbourne, or by searching for off-market opportunities yourself.

7. Become an Expert Negotiator

In good news for real estate investors, rental income is expected to climb in 2023. This means your source of passive cash flow will be in a strong position if you have made wise rental property investments. Similarly, if you’re looking to enter the market this year, higher rental yield could soften the impact of increasing interest rates. 

On the other side of the coin, the combination of increased rental prices and softening property prices is likely to result in more competition for those who are looking to buy.

Would-be buyers and first-home buyers will see 2023 as the perfect time to ditch the weekly rent and finally enter the housing market as an owner.

As an investor, you’re going to need to master the art of closing the deal to outcompete both owner-occupiers and fellow real estate investors.

This means being able to execute auction bidding strategies and knowing what sort of moves to make during private sales, pre-auction offers, or when a property is passed in.

Vendors understand that rising interest rates, falling property prices, and shaky consumer confidence mean fever-pitch auctions won’t be as reliable as they have been in the past few years. But this just means that vendors and their selling agents will be savvier when handling private offers and negotiations. 

So you need to be savvy too!

Either sharpen your own skillset around bidding, private offers, and negotiations or hire a Melbourne buyers advocate to help secure the assets you need for successful investing in 2023 and beyond.

8. Go Green with Your Development Projects

The trend of sustainability in residential developments is set to stay, so if you’re pursuing development projects in 2023, keep eco-friendly considerations in mind.

Going green with your development projects offers excellent resale value, as future buyers and investors are increasingly looking for features like solar, heat pump heating and cooling, and all-electric homes.

Rebates may also be available when retrofitting homes with energy-efficient appliances and features. This could be an easy way to increase your capital gains and ROI, with the government subsidising the cost of your value add!

9. Value Adding Is a Strong Option in 2023

Renovation Concept: Before and After Apartment Refurbishment

For those who are considering selling or leveraging equity, it is important to stimulate strong capital growth in 2023, and this requires an active approach.

The best way to do this is to make your investment better through either renovation or development.

While the construction sector is hurting, there will be some cost stabilisation in 2023, meaning there are many steps you can take to renovate your property and increase the value of your investment. 

Boost first impressions by rendering and re-working front yard space, creating usable outdoor entertainment areas, and renovating wet areas like kitchens, bathrooms, and laundries. The simple act of ripping up carpet and polishing natural floorboards could be all you need to add value to your investment. 

In a property market that’s trending a bit flatter, now is the time to make these smart improvements.

10. Renovated and New Properties Are Safe as Houses

The current property market is one where you need to understand and respect the fundamentals.

As I said in my 2023 Forecast, you can still expect strong results from new and renovated properties. Conventional blocks, future potential for development and renovation, and residential properties in high-demand areas will also serve you well.

But if you’re targeting oversupplied apartment projects or “character homes” with limited appeal, the market will be less forgiving to you now than ever before.

You should see 2023 as a window of opportunity – especially in the first half of the year while the situation is yet to settle.

Yes, you will still need to pay handsomely for quality homes and rental properties that offer strong yields for investors. But the current state of the market means you might just secure these quality investments for somewhat more affordable property prices.

Most importantly, the right properties will repay you by continuing to pay handsomely in the years to come – both through annual income from rent and long-term capital growth. And you can expect a slight bump in house price growth as soon as interest rates stabilise.

So, it just makes financial sense to get in now. Secure property with good fundamentals and great growth potential while dwelling values remain flat!

Learn more about Property Analytics

My name is Andrew Stone, founder of Property Analytics. Together with my team, I can help you navigate the property market with confidence in 2023.

As buyers advocates, investment advisors, and development consultants in Melbourne, Property Analytics offers an end-to-end buying service. We can shortlist, negotiate, and secure investment properties, and help you put profitable property development plans in place.

To discuss successful real estate investing in 2023, simply pick up the phone. Let’s have a coffee and a chat, and see what your next move might be.


When Is the Best Time of Year to Buy/Sell Real Estate in Melbourne?

When Is the Best Time of Year to Buy/Sell Real Estate in Melbourne? 1000 667 Andrew Stone

Winter, Spring, Summer, Autumn. These four words can haunt just about anyone in the real estate market – because there’s one thing that everyone wants to know.

What is the best time of year to sell my property? And what about the best time to buy?

Winter and Spring are often touted as the best times of the year for sellers, but what season really stands out as the best and what other factors do you need to consider?

I’m here to take a look at the various rationales and some statistics behind them to determine the best time to buy or sell a property.

What Factors Affect House Prices (and is time of year really one of them?)

Porch of a residential weatherboard home in the Australian suburbs

Before I delve deeper into things, it’s worth asking if the “best time of year to sell real estate” is just a red herring.

Well, yes and no. While you’re studying the calendar to find that “goldilocks” period to sell your house, there could be a dozen other factors that are driving property values up or down, including:

  • Supply and Demand in the Current Property Market: If there is a high number of buyers and a scarcity of properties on the market, prices are going to be driven up regardless of the season or month of the year. That’s why they call it a seller’s market. Conversely, if you’re in a buyer’s market, the number of vendors will be higher, interested buyers will be rarer, and prices will trend lower across the entire calendar.
  • Location: Where you buy or sell is more powerful than when you buy or sell. The appeal and reputation of your area, proximity to shops, schools, restaurants, hospitals, and universities, inner suburbs vs outer suburbs, and other location-based factors will drive the price of your property up or down.
  • Interest rates: Lower interest rates mean more borrowing power, higher budgets, and higher house prices. Interest rate hikes can slow price growth because sellers are able to borrow less and are willing to spend less on a house.
  • Property Features, Size, and Type: Generally speaking, if there are two houses in the same area, the bigger house with more attractive features will sell for more, regardless of the time of year. I’m talking about multiple bathrooms, garages, attractive outdoor areas, and more. It’s also worth considering how appealing your property is based on the features and demographics of your area. Are houses, townhouses, or units selling better in your area? A large, multi-storey home will be more appealing in areas that attract growing families and migrant populations with a focus on multi-generational living. But it won’t be as big a seller in areas with an older population that is focused on downsizing and mobility in the home.
  • Property and Land Potential: Investors can drive up the value of your property if they see the potential for easy value-adds. If your property and land are prime for renting, renovating, or developing, you will attract a higher price tag.
  • First Impressions and Emerging Trends: Don’t underestimate street appeal, interior design, and the general aesthetics of your property, as these factors can drive interest up or down and adjust the value of your house by tens of thousands of dollars in either direction. Similarly, consider emerging trends that are set to last and how these will affect property value – especially if there is policy momentum behind them. For example, energy efficiency features are an increasingly big ticket item for sellers.
  • The State of the Economy: When the economy is thriving there are more people employed, getting pay rises, and looking to improve their living conditions. This can drive up consumer confidence and buyer demand, which has a direct correlation with property prices.
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So, Does the Time of Year Have Anything to Do with Melbourne Property Prices at All?

It’s a fair question to ask, and like I said, yes and no.

If interest rates are rising all year and we’re stuck in a period of economic turmoil, property prices are going to be lower all year around.

And your location is your location no matter the date on the calendar. Unless your postcode suddenly becomes more or less sought after, when you choose to sell will only have so much impact.

With all that said, supply and demand are probably the biggest factors that can fluctuate based on the month or season you choose to buy or sell your property. 

When to Sell Your Property? Winter vs Spring

Winter vs Spring Concept - One tree in bloom and the other tree bare

In the battle for seasonal supremacy, winter and spring are often touted as the best times to sell real estate.  

In Melbourne, more properties are listed for sale in Spring than in Winter.

Regardless of the reasons, it’s a basic fact in the residential market – more vendors choose to list in the months leading into Christmas than in any other period. It’s what my data says, and the “Spring Rush” or “Spring Blitz” is a well-known phenomenon in the real estate market.

However, the best month to sell both houses and units in Melbourne is in July, according to research from Swinburne University. July offered the highest prices for sellers – and that’s right in the middle of winter!

So, what’s going on here?

Let’s take a closer look at spring and winter to find out.

Selling Property in Spring – Rationale Plus Pros and Cons

It’s easy to understand the rationale behind selling property in spring.

Melbourne’s cold, dark and dreary winter is on its way out, replaced with refreshing warm weather, light breezes, and blossoming flowers.

For vendors, outdoor areas look their best and more light is pouring into the home. For buyers, the conditions are perfect for attending open houses and gathering outdoors for a hard-fought auction.

And looking at the data, we can see that this is at least partly true. 

As I said, spring is when many people choose to sell, but the demand isn’t necessarily keeping up with the supply. The spring seller’s market often morphs into a buyer’s market because prospective homebuyers and investors can always move on to their next option.

So, the advantage of selling in spring is that it’s an active time in the Melbourne real estate market. Additionally, general weather conditions often mean your house and garden will look great and plenty of eyes will be on your property. If your property has the features to stand out, all these factors might come together to net you a higher sale.

But the busyness of the spring property market is also its major drawback. Supply often ends up outstripping demand as more and more sellers are convinced by real estate agents to take advantage of the spring rush. Plenty of prospective buyers might be out and about too, but with so many other options on the market, they’re not necessarily devoted to buying your home. If your property is a little bit lacking, it could easily get lost in the mix and end up selling for less due to a lack of demand for property compared to the sheer supply.

Selling Property in Winter – Rationale Plus Pros and Cons

If you look at the rationale for selling real estate in winter purely from a “weather” perspective, it can be difficult to understand.

Melbourne’s winters offer colder, shorter, and darker days. In the colder months, our property will be starved of the natural light it needs to display well, and even the best-presented gardens can look more like a swamp in low light after some heavy rains. On top of this, the winter weather seems hugely demotivating for would-be buyers who need to inspect properties and shiver through auctions.

But I’m a buyers advocate and property investment advisor in Melbourne – not a meteorologist. So let’s look at the other side of the winter rationale.

Here are the facts. Serious buyers don’t generally take a ‘holiday’ from property inspections just because the season has changed. Buying property is a time-consuming and stressful process; from securing finance approval to choosing suitable suburbs, attending opens, researching sales, and sharing your contact details with agents. It requires serious commitment.

Because of how time-consuming it can be to buy a home or investment property, Buyer Demand remains broadly the same in winter as it is in spring. However, Supply from Vendors is dramatically less in winter, partly for all the weather-related reasons we just listed.

The results should be intuitive, but unfortunately, they’re not widely known.

I have crunched the data and looked at auction activity across 100+ suburbs in Melbourne over a three-year period.

I compared the Number of Auction Campaigns conducted in Winter Vs Spring as well as the Auction Clearance Rates as a percentage. 

Yes, far more properties are auctioned in spring than in winter – no surprise there. But, interestingly, a higher proportion of auctions are successful in winter than in spring. Why??

Because a lower supply of properties for sale translates to less choice for buyers and hotter competition at auction.

It’s the basic concept of supply vs demand in action, and it’s the very reason why selling in spring can be so fraught.

Simply put, when 10 buyers see only 2 properties for sale that suit their requirements, interest for each property (as shown by auction bidding) will be strong. But, when 10 buyers see 5 properties for sale that suit their requirements, interest will be diluted, and bidding will be less competitive at some or all of the auctions.

When you combine the data comparing auction clearance rates with the statistics that show July nets the highest property sales, you start to see a clear picture of the benefits of selling in winter.

For what it’s worth, I always prefer to sell during winter.

Winter is pretty much the only period where I strongly consider selling my development properties off-the-plan, and would advise my clients to do the same as their property development consultant in Melbourne.

As a buyers advocate, winter is the time that I have to work my network the hardest for off-market and newly listed opportunities.

So, if you’re a vendor thinking about waiting until Spring, there’s only one piece of advice I can give you. Wake up and ask yourself why you wouldn’t want to list when there are fewer competing properties for sale on the market.

You can make your home feel cosy or try to display right when the winter sun hits your windows, but you can’t overcome the mechanics of supply and demand. So, it literally pays to take your competition out of the equation as much as possible. 

What about Selling in Summer and Autumn?

Bathing Boxes On Brighton Beach - Melbourne, Australia

Winter and spring take up so much of the debate that it’s easy to forget that there are two other seasons for selling property in Melbourne.

When it comes to summer, both November and early December can be viable months for selling real estate. But the dead zone in the last week of December is real – with the elephant in the room being the Christmas and New Year period. Following this, January and February are generally good times to start preparing and listing your property in preparation for an autumn sale.

Looking at autumn, it’s fair to say that it’s a bit like spring with a sepia filter thrown over it. Things are cooling down coming out of summer rather than warming up when emerging from winter, and blossoms and greenery are replaced with falling leaves and earthy tones. From a real estate perspective, autumn is busy without being the rush period of spring, so sellers might see some of that “Winter Effect” where buyers have fewer options to choose from, but equally, a few more potential buyers other than the most committed might be drawn to your property.

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Other Factors to Consider When Timing the Sale of Your Property

  • You need to look at local data when selling your property – including historical information and emerging trends. Commentary about the housing market often makes things look much more macro than they really are. Real property experts know that different areas may tend to favour buyers or sellers at different times of the year. You need to know what your location is doing – down to the postcode.
  • Before you list, take a look at the number of listings of homes for sale near you and how many of these property types are directly competing with your own. If there are too few or too many, this could be a sign that now is not the time to sell. Also look at vacancy rates, auction clearance rates, and other important stats.
  • The realities of why you are selling should take priority over choosing the best time of year to sell. Whether you’re a homebuyer or an investor, if you’re in a position where you need to sell, there might not be any point waiting.
  • Finally, you need to consider all the other factors and forces that can influence market conditions and sale prices, like those mentioned at the top of this article.

What Is the Best Season to Buy Property in Melbourne?

Close Up of Female Realtor Giving Keys To New Homeowners

As a buyer, you want a property market where there are plenty of choices and comparatively few buyers to compete with. Once again, winter and spring may be your picks.

Spring is an option for buyers who want to take advantage of the hot “auction season”, where there are rarely enough active buyers to keep up with the properties on offer. You might find yourself outpaced at a few busy auctions, but there will almost always be another option that appeals to you.

Winter is more of a seller’s market where there is a small pool of buyers going to almost every auction. But if you can find a property that suits your needs and the campaign is fairly quiet, there might be a great opportunity to snag a bargain.

Whatever the time of year, the key is to look for those distressed vendors who really need to sell and see if you can take advantage of their willingness to offload their property quickly.

Summary: Is There a ‘Goldilocks’ Season When It’s Best to Buy or Sell? 

There are many reasons why property values rise and fall, so it would be disingenuous to say that the season you buy or sell in is the ultimate deciding factor.

But I will happily tell you that you should never rush into buying or selling real estate when you can afford to stop, think, and analyse your options. 

And for what it’s worth, I’ll reiterate that I often aim to sell investments and off-the-plan developments in winter, when the supply and demand dynamics shift further in the vendor’s favour.

Do you want to find the sweet spot to buy or sell an investment property in Melbourne? My name is Andrew Stone from Property Analytics, and I can help you master the property cycle to secure wealth-generating investments and development sites. 

As your property investment consultant and buyers advocate serving areas like Kew and Ivanhoe, I have an intimate knowledge of the best time and worst time to buy real estate in Melbourne. More importantly, my rigorous, data-driven selection process ensures you target quality properties that can withstand fluctuations in the property cycle and help you achieve your real estate goals.

For more information and to discuss your investment and development goals, please reach out to Property Analytics.

Aerial Photo Of Houses In Suburban Melbourne, Australia

2023 Melbourne Property Market Forecast for Investors

2023 Melbourne Property Market Forecast for Investors 1000 666 Andrew Stone

Melbourne house prices will continue to fall and interest rates will remain on the rise, but market stability is just over the horizon.

This is the 2023 Melbourne Property Market Forecast for Investors, brought to you by Andrew Stone of Property Analytics – your property investment advisor in Melbourne.

Aerial Photo Of Houses In Suburban Melbourne, Australia

Here’s the Headline: Melbourne House Prices Will Continue to Fall!

If you’re looking for a reprieve from all the negative news stories about the state of the Australian Property Market, you should look elsewhere.

Journalists will continue reporting about falling dwelling values because the rolling 12-month median house price will continue to fall. 

In fact, I guarantee it. 

How can I be so confident? Well, the monthly median house price was significantly lower than the rolling 12-month median house price for most of 2022.

Because of the way these two sets of data are measured, there is always a lag between monthly median house prices and rolling 12-month house prices.

Or in other words, the lower monthly numbers will start to affect the higher 12-month rolling price, meaning there’s only one direction it can go – down!

And some news outlets will probably report a statistical inevitability like it’s a sign of the next big property market crash.

More Rate Hikes Are Almost an Inevitability

Homeowners and investors should brace for more interest rate rises because further increases in the official cash rate are likely.

And until we see those interest rates stabilise, you should not expect a return to consistent price growth. Increasing interest rates result in reduced borrowing power and weary buyers, which in turn means less demand for housing and a lower price for houses and other properties.

With the Melbourne market well and truly coming off the boil, many vendors are being brought back to reality in a big way. If your property lacks one or more of the fundamentals – like a quality dwelling, conventional block or sought-after location – you can expect much less competition between buyers and even less of an appetite to overpay to secure a property.

But here’s the good news. The idea that interest rates need to return to the extreme low points of the pandemic – or even the modest levels we saw before that – is not supported by data.

History suggests that it’s the direction that interest rates are moving in – and not the cash rate itself – that drives property prices.

Or in other words, interest rates might stabilise at a figure that’s higher than we’re used to in recent years. But as long as they stabilise, you can expect to see a steady return to price growth in the housing market in Melbourne and other capital cities. 

Melbourne’s Rollercoaster Real Estate Market Might Be at an End 

It’s fair to say that it’s been a very tumultuous 5 years on the housing market for property investors and owner occupiers alike. We’ve jumped back and forth between buyer’s markets and seller’s markets fast enough to give you whiplash, and property values have had steep inclines followed by the sharpest rates of decline we’ve ever seen.

Between late 2017 and late 2019, property prices fell by about 10%, which represented the sharpest fall in property values in living memory. Then through 2020 and 2021, we saw prices jump about 30% as interest rates plummeted and buyer demand soared. Then throughout 2022, prices fell by about 15% – beating the previously historic fall from 2017-19.

We’re due for some stability in Australian house prices and the general state of the housing market, and in 2023, we’re likely to get it. Expect to see much more consistency and less volatility across the 2023 calendar year.

Some Rental Markets Will Continue to Strengthen in 2023

Townhouses in Melbourne, Australia

Apartments and townhouses have experienced a decline in vacancy rates and a rise in rental yields, and this trend will continue in 2023. This will largely be driven by the increase in overseas migration as immigration levels in Melbourne and across Australia return to normal in a post-pandemic world.

This decline in vacancy rates and increase in rental yield presents an opportunity for investors who have recently completed townhouse projects or have retained their assets over the last few tumultuous years.

The Construction Boom Is Over

Government programs aimed to boost construction and renovation activity and strengthen the economy during the pandemic, but those times are well and truly at an end.

New construction work was already on the decrease in the Melbourne and Australian property markets, and these decreases will continue in 2023. A combination of lower end prices and higher construction costs has created serious profitability issues in the construction industry, and this has resulted in turmoil across the board.

News of more than a dozen construction firms going under first emerged in mid-2022, and the uncertainty and unprofitability across the sector continue to cause shockwaves.

Expect Auctions to Start Looking Different 

Sign for residential real estate auction

We’ve seen the auction market take all shapes and forms, from online sales to bidding at 2 feet apart. As a buyers advocate serving Preston, Northcote, and Melbourne’s hottest suburbs, I’ve seen it all.

But throughout it all, auctions have consistently remained two things; hot competition and the preferred way of selling.

I don’t expect private sales to surpass auction campaigns in terms of numbers, but auctions will increasingly feel like private sale campaigns with an end date attached. The majority of properties will transact with less buyer competition in 2023, with 5 or more serious buyers dropping back to 1 or 2 in many cases.

For this reason, you won’t find as many buyers stubbornly deflecting private offers and holding out for auction day. Investors and homebuyers will have the opportunity to make genuine offers and negotiate a deal before the day of the auction. When properties do get to auction, we can expect steady auction clearance rates overall in 2023 based on their current levels.

Supply: More Properties Are About to Hit the Market

It’s always worth looking at how supply and demand dynamics are expected to play out because of the impact they can have on market conditions. 

Throughout the year, you can expect to see an increasing supply of properties coming onto the market. This is due to the large proportion of fixed-interest loans that will be reverting to variable rates, and the many mortgage holders who were never really prepared for this switch. With many loans going from 3% interest to 5.5% – or experiencing an even larger swing – many vendors will be looking to offload and unburden, some of whom will be distressed vendors.

For strategic investors and buyers, the sheer volume of real estate hitting the market could represent an excellent opportunity for affordable property purchases and strong long-term gains.

Demand: High Yield Apartments Plus Turnkey Houses

In 2023, expect buyer demand and interest to turn towards higher yield apartments whose values have held up reasonably well in recent times. Investors will look to these rental properties to generate passive income and meet the renewed rental demand that comes partially from the returning influx of overseas migrants.

A-Grade homes will continue to attract buyers. But with building approvals dropping, living costs rising, and challenging times ahead for the construction sector, buyers are specifically searching for updated/newer houses that are turnkey-ready and can quickly be moved into. 

Potential buyers will always consider long-term renovation and development work – especially as part of an investor’s value-add. But for investors and owner-occupiers, the priority will be on houses that are ready to use now, both in Melbourne and other major cities.

Here’s the Takeaway: There Are Opportunities for Investors in the 2023 Melbourne Market

Time To Invest In Real Estate Concept

To summarise, I expect the cash rate to continue rising before it stabilises, and the median price of properties will continue to fall, resulting in lower house values.

What this represents is a long-term opportunity for those who choose to invest in A-grade houses and properties.

If you continue to get the fundamentals right, you can enter the property market before rate increases hit their peak and begin to tail off again. This means you can enter the market before interest rates stabilise, prices begin to climb, and buyer confidence recovers.

In other words, you can get in before the wearier buyers and investors make their move, and you’re not likely to be punished by months and months of rate hikes.

As always, some of the things to look for in your investment property in 2023 include:

  • Properties with a high land-to-asset ratio
  • Conventional blocks in popular locations (such as inner-ring suburbs)
  • Turnkey properties that are ready to move into now
  • Properties with strong future development potential
  • Properties in areas with low unemployment rates, high wages, and steady wage growth
  • Now is not the time to target lower-quality properties or property types where there is a glut of supply!

Now Might Be the Perfect Time to Enter the Melbourne Property Market Because:

  • Melbourne will continue to experience strong population growth. Despite talk of interstate migration post-covid, Melbourne reached a population of 5 million 11 years earlier than projected and is set to overtake Sydney by 2032. Over 70% of people living in Victoria reside in Melbourne, and as the population continues to grow, demand for housing will grow too!
  • Melbourne’s economy and lifestyle are also highly attractive for well-paid overseas migrants. Migration levels are already experiencing a strong rate of growth post-restrictions, and the process will continue to attract many more skilled migrants to Melbourne – resulting in many more renters and buyers!
  • Melbourne’s popular school zones will continue to drive up property prices. If you can get a great deal on an investment property in an in-demand school zone, you can expect to see property price growth and strong rental appeal as parents jockey to establish their families in a preferred catchment area.
  • Melbourne’s property market will start to settle in 2023. So, if you are financially capable and considering joining the investment market, now is the time. Make your move before interest rates stabilise and Melbourne’s dwelling prices start creeping back up. There are still investment-grade properties available across the market, and acting promptly and prudently can help you get in on the ground floor and experience steady house price growth in the years to come.

Talk to a Property Expert

Property Analytics specialises in helping clients secure high-growth investments and development sites in Melbourne.

Our buyers advocates serve areas including Kew East, Kew, and Brunswick, offering an end-to-end buying service that leverages industry-leading market research and years of practical industry experience.

From strategy and shortlisting to price negotiations and final handover, my team and I can research, locate, and secure profitable investments that meet your goals.

The only property price forecast that matters is the one that tells you how your target investment will perform. To invest in properties with strong demand and high capital growth potential in 2023 and beyond, arrange a one-on-one consultation with Property Analytics today.

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