With more than 300 suburbs in Melbourne, knowing where to invest in can be overwhelming. But, despite what may seem like chaotic market conditions across the state, there is still plenty of financial success to be had if purchasing in the right areas.
Realestate.com.au recently named the city’s 50 top postcodes for investing. This data proves Covid-19 has bolstered the desirability and rental demand for properties in Melbourne’s outer ring, with only six of the listed suburbs within 20km of the CBD. It’s clear, Melbourne’s repeat lockdowns have tenants seeking space, both inside and out.
Box Hill and Croydon were two eastern suburbs among the 50 strong performers. For a long time now, Box Hill has had accessible public transport, nearby freeways, and proximity to desirable schools. However, with restrictions on international travel and immigration, there is an oversupply of apartments and high levels of vacancy rates for this property type. If investing in Box Hill, look for a villa unit, townhouse, or house. Or consider neighbouring suburbs like Box Hill North, Blackburn North, or Forest Hill.
Croydon has seen a renaissance and caught the eye of investors, and rightly so. The addition of infrastructure across the Maroondah municipality – such as Eastlink, Eastland and Aquanation – has sent demand for property skyrocketing. Sister suburbs Croydon South and Mooroolbark are areas to keep an eye on.
Urban sprawl can also be attributed to the recent success of Box Hill and Croydon. As inner-city house prices continue to climb, home buyers are pushed towards the outskirts of Melbourne.
Picking the next up-and-coming suburb isn’t easy, and by the time the media reports these hotspots, the horse has often already bolted. However, the fundamentals of investing remain constant. Don’t forget to consider metrics such as capital growth, rental yields, and rental demand and prices. And if you’re trying to get ahead of the pack, look into the infrastructure and investment planned for the area – a new school, train station or shopping centre upgrade in years to come will have positive impacts on surrounding property.