The share of enquiries from buyers wanting to purchase property from interstate jumped significantly during 2023, in fact, realestate.com.au reported that 23% of all purchasing enquiries came from buyers based in a different state to the one they were looking to buy in. And we know firsthand that interstate investors are often attracted to Melbourne’s lucrative property market.
Our robust economy, continual infrastructure and urban development, appealing lifestyle and diverse real estate landscape see interstate investors starting or diversifying their property portfolios in Melbourne.
For investors, who live in more expensive cities like Sydney, combining the above incentives with our more affordable median house price and investing in Melbourne is an enticing option.
Four key reasons to invest beyond your borders and in Melbourne are:
Diversification and Stability
We all know the saying don’t put all your eggs in one basket, and real estate is no different. By diversifying into different markets, you spread your risk and hedge against market fluctuations that might affect your home market.
Melbourne’s diverse economy, supported by major industry and employment sectors, combined with an increasing population contributes to a stable property market that attracts long-term investors.
| 2021 | Project Population 2031 | Projected Population 2051 | |
| Victoria | 6.5 million | 7.8 million | 10.3 million |
| Melbourne | 5 million | 6 million | 8.04 million |
Source: Invest Victoria
Affordability and Yield
Your money goes further in Melbourne than it does in Sydney.
The current median dwelling value in Sydney is around $1.3 million whilst Melbourne’s is around $800,000 so you can invest in a market with a smaller budget or you can more bang for your buck, and buy a property type you could not afford in Sydney.
Additionally, Melbourne’s rental yields are competitive and are currently higher than Sydney’s.
In the last 12 months to January 2024, Melbourne’s asking rents have increased 17% for houses and 12.6% for units according to SQM Research. And with a vacancy rate of 1.1%, there is strong demand for well-located rental properties.
Source: SQM Research
This combination of affordability and yield can be appealing for interstate buyers seeking value, capital appreciation and income generation.
Urban and Infrastructure Development
Melbourne’s continual urban and infrastructure development initiatives contribute to its appeal.
Ongoing investments in transport, education, healthcare, and recreation all contribute to Melbourne’s recognition on the world stage as one of the most liveable cities. In fact, since 2011 Melbourne has won the “World’s Most Liveable City” title 7 times, came second twice, and ranked in the top 10 against 173 other cities in the remaining years.
Current projects like the Metro Tunnel, Northeast Link, West Gate Tunnel, and local council suburb rejuvenation projects all increase property values, attract tenants and buyers making it ideal for long-term investment goals.
Diverse Property Types and Locations
Melbourne offers a diverse range of property options, catering to different investment strategies.
We have recently secured investment-grade properties for our clients from as little as $500,000 up to $2 million. Depending on our client’s needs, properties purchased included well-located houses, townhouses, and villa units, blocks ripe for future redevelopment or subdivision as well as inner city boutique apartments.
Investing in Melbourne’s property market presents a range of benefits for interstate buyers looking to expand their investment portfolio or venture into a new market.
Read about our Investment Buyer Advocacy service or some great investor success stories from clients.
Book a Complimentary Consultation
Let’s catch up and talk property!
Take advantage of our free 30 minute consultation.
We can discuss your property goals, the market and answer your questions.