A survey by the Property Investment Professionals of Australia (PIPA) has found that investor confidence across the Australian property market is still strong, with 58 percent of investors saying that they are looking to buy within the next 6 to 12 months, and 71 percent saying that now is a good time to invest in property.
This is encouraging for investors looking to snap up a piece of Melbourne real estate in 2020, and competitive property prices combined with strong rental yields in growth areas such as Melbourne’s north-west and south-east create a compelling reason to invest outside of the premium priced inner-suburbs.
A number of new apartment, townhouse and house and land developments in these high-growth areas present a fantastic opportunity for investors this year, and with housing prices set to return to boom-era levels over the next year, now could be the ideal time to invest.
Melbourne’s south-east is one of the fastest growing areas in Victoria, providing opportunities for savvy investors to make the most of this expansion. In order to implement effective urban planning in areas such as the south-east, the Victorian government has created high-level, Growth Corridor Plans. These integrated land use and transport schemes provide a strategy for the development of Melbourne’s growth corridors over the coming decades, aiming to add further value to these key locales.
The south-east is set for continued expansion over the next decade, with extensive developments in areas such as Wantirna South creating thousands of new homes to keep up with the demand.
This development in Ringwood is situated in the heart of this south-eastern growth corridor. The median house price for a residence in Ringwood was $805,000 as of December 2019, with a median rental return of $425 per week. Ringwood Residences offers apartments starting from $369,000 - creating a clear incentive to purchase an off the plan investment in this sought-after south-eastern suburb.
This high-quality residential community offers both house and land packages and townhouses to invest in. Based on its average 5-year and quarterly capital gains, Clyde North – another suburb in the heart of the state’s growth corridor – saw average growth in the long term, with profits averaging 32.25 percent per-annum over a 3-year period thanks to an upward trend in home prices. Investors could earn a rental income of $410 per week based on current median home prices for the suburb, making it a fantastic investment opportunity.
An expansive development of 1, 2 and 3 bedroom apartments, M-City is a fantastic investment opportunity in Clayton, perfectly located within close proximity to the Monash University Clayton campus. The suburb has seen a steady increase in median property prices over a five-year period, with a current average house price of $1,183,500. With off the plan apartments selling from $371,000 to $880,000, M-City provides a great opportunity to invest in this sought-after locale.
The North and West
Similarly to the south-east, Melbourne’s north and west are also positioned in high-growth corridors, with their own integrated land use and transport Growth Corridor Plans in place to manage this increased expansion. The north-west is a great investment opportunity, often there are more affordable options available than in the east, and the area enjoys easy proximity to the CBD and airport.
Improving infrastructure, including the new West Gate Tunnel, add to these investment benefits, creating a plethora of reasons to invest in Melbourne’s north and west.
With an average house price of $531,000 and a median rental return of $390 per week, Sunbury offers an affordable investment opportunity. An increase of 3.83 percent in rental returns based on the current median price was seen in Sunbury last year, and developments like Whitehall Rise provide investors a great chance to enter the market. Sunbury’s north-west position means continued growth is predicted over the next decade as Melbourne continues to expand.
Located in the northern suburb of Wallan, this new estate is perfectly situated near shops, schools and sporting facilities, making the bustling locale great for investors. The median house price of $495,000 presents an achievable investment price-point, and the predicted 10.5% increase in house prices over the next 3 years creates a compelling case to purchase an off the plan property in this area.
Situated on a picturesque bend of the Maribyrnong River, this Sunshine development is comprised of 234 townhouses and a low-rise 4 storey apartment building, creating multiple opportunities for investors. Brimbank Council has stated that they are working to increase opportunities for business activity and investment in Sunshine by facilitating competitiveness and resilience of the local economy. With a median house price of $682,000 and average rental return of $375 per week as of December 2019, purchasing an off the plan investment in this rapidly growing suburb could be a smart move in 2020.
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