By Sharon Koh, KEO
Date: 08 Oct 2020

After discovering the perks of overseas property investment and why we should invest in Melbourne property market, we would then question whether we should look at investing in an apartment in the CBD or getting a house and land in the growing suburbs instead.

Both choices have their pros & cons. Over at GREEX, we have done in-depth research to provide you with our thoughts when it comes to these. We’ve scoured through countless news publications, findings and data as well as combined them with our personal experiences related to the topic of investing in Australia, to ensure that you can maximise your returns on investments too.

Read on to discover which side of the fence we should weigh in more for 2020.

Fact #1: Melbourne Property Market Pricing Trends

It is a well-known fact that over the last 4 decades, Melbourne land & property market values have risen at the fastest pace within Australia – climbing steadily up to 12% higher, prior to the outbreak of COVID-19.

However, the recent Melbourne house prices and market activity are being adversely affected by Victoria’s stage four lockdown conditions – with figures diving down by 1.2% in August.

Historically, the city property market has grown from strength to strength – with 30 percent of general Melbourne suburbs and 90% of inner suburbs enjoying a median house price stretching over $1 million. If you invest in an area located near any government school enrolment zones, these properties typically tend to yield more on overall growth.

This means that even though the property market in general declined in growth percentage figures, the suburbs present a greater opportunity for greater capital yield, as compared to apartments within the CBD region. Families are also more inclined towards locations that offer efficient transport infrastructure and easy access to effective amenities as well as quality education.

Fact #2: Melbourne CBD Apartments VS Suburbs Capital Growth

In the last five years, there’s been quite a surge in property value especially in the suburban region as compared to CBD apartments: number of suburbs with a median house value of $1 million or more has jumped by 13 % and for the record, there are only 6 % of suburbs with a median value under $500,000, though this is a jump from prior years.

According to, Melbourne now has 119 suburbs with a median price of $1 million or more, a hike up from 98 only a year ago. This also illustrates the biggest rise in suburbs joining the million-dollar club in Australia, compared to last year.

Taking this into account, it is by far more valuable for investors to take a closer look at investing in Melbourne’s suburbs as compared to CBD apartments, and perhaps assess investments in the suburbs or inner suburbs, instead of comparing against the CBD.

Fact #3: Growing & Changing Melbourne’s Demographics

Melbourne – Australia’s second-largest city is home to over 5 million people (population as at 30 June 2019) and had the largest growth rate. In fact, Melbourne has been ranked the world’s most liveable city for 7 years in a row – up until 2018 when Vienna overtook it.

This culturally diverse and remarkable city is home to residents from approximately 180 countries which accounted to the large growth rate coupled with interstate migration.

Business management consulting firm PwC Melbourne identified factors that made the suburbs more appealing to those looking to invest or make home.  Aside from the concept, design, and overall serenity that come with living in places further away from the city, suburbs are also generally well favoured by both the locals and immigrants, thanks to the aspect of community safety, leisure facilities, health and well-being services available to the neighbourhood they lived in. Most importantly, living in the suburbs allows individuals to build a sense of community and furthermore, being able to feel a sense of connection to something has always been a main selling point.

Not to mention, the current pandemic outbreak is seeing a surge in demand for bigger living spaces and open area, away from the densely populated inner city living, and in which a landed property in the suburbs can offer.

This also means, when COVID-19 travel restrictions gradually eases up, it will very likely bring about the next batch of long-term visitors who might potentially invest in the suburbs for their Australian property of choice. According to well-known Australian property insights, if you are looking to invest in a place in the suburbs, something to look forward to are the lower turnover rates of tenants.  This presents a great opportunity for one who is looking to profit from their overseas investment choices.

We hope that this simple article has helped you form a better understanding of the property investments in Australia. Do feel free to join us in our upcoming webinar session to clarify any doubts you may have.

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