Melbourne’s property investment market, along with the broader state of Victoria, is witnessing notable growth, accompanied by increasing competition between investors and first-home buyers. According to the PropTrack Westpac Investor Report, the share of investor loans in Victoria rose to 36% of total housing loans over the past year, marking a significant increase compared to previous years.
The report highlighted that 12 out of the 20 areas recording the highest growth in investor inquiries nationwide during the year were located in Melbourne. Among the top suburbs attracting investor interest are Coolaroo, Carrum, and Meadow Heights for houses, as well as Notting Hill, Burwood East, and Cremorne for units and apartments. These areas were selected based on a combination of above-average price growth, attractive rental yields, and strong leasing demand.
The report also revealed that nearly half of investor inquiries were focused on properties priced below $700,000—a segment that is also highly sought after by around 45% of first-home buyers. Despite the challenges faced by Victoria’s housing market in recent years, most investors who sold their properties managed to achieve solid returns.
In Melbourne alone, 84% of property owners made a profit on resale during the final three months of 2025, while regional areas in Victoria recorded an even higher success rate of 96%. At the national level, the report showed that 93% of investors achieved positive returns exceeding their initial purchase costs.
However, Angus Moore, Chief Economist at PropTrack, noted that profit levels in Melbourne were relatively lower compared to other capital cities, due to weaker overall housing market growth in the city over the past six years.
Moore explained that property prices in Melbourne have increased by only about 20% since the start of the decade, compared to rises ranging between 110% and 120% in cities such as Perth, Adelaide, and Brisbane.
