A new report reveals that the best investment opportunities in Melbourne are concentrated in family-friendly suburbs due to affordable pricing, low supply, and steady demand from owner-occupiers. Analysis by Convergence Buyer’s Agents shows that family homes in these areas—where the likelihood of long-term sales during economic downturns is lower—top the city’s investment lists.
The Head of Investment at Skyhammer points out that Melbourne’s market is split into two levels: affordable homes face strong demand, while the luxury property market struggles. He added that family homes with prime locations and appeal to owner-occupiers perform better.
The analysis focused on homes priced between $800,000 and $1.2 million, considered the most sought-after by buyers. A list of the top 10 suburbs was identified based on criteria such as rental yields, vacancy rates, and residential stability.
Steve Douglas, CEO of SMATS Group, predicted Melbourne’s outperformance due to its population growth and relative value, despite expected slowdowns in markets like Perth and Brisbane. He noted that Melbourne currently offers promising investment opportunities, especially in high-quality residential units, while central residential areas may grow at slower rates.
