Are you thinking about investing in property investment Melbourne and want to know which areas are the best suburbs to invest in Melbourne 2023? Let’s look into this together.
The real estate market in Melbourne has changed for the better in 2023. After a tough time with problems like the COVID-19 pandemic’s effect on the economy, long lockdowns, multiple interest rate hikes, and tighter lending rules, Melbourne’s home prices are now moving in a good direction.
Corelogic’s daily home value index shows that Melbourne house prices went up 0.7% in June 2023 and 1.8% over the quarter. This is the fifth month in a row that prices have gone up. This change in the market shows that buyers and sellers are feeling more confident again.
But it’s important to know that Melbourne’s real estate market is not a single thing. As Melbourne moves through its recovery phase, this variety in the market gives smart buyers chances to make money.
The flight-to-quality homes trend hasn’t changed. People want to buy A-grade homes and “investment-grade” houses. B-grade homes take longer to sell, and smart buyers stay away from C-grade homes. Auction clearing rates, which show how people feel about the market in real-time, show that things are looking up again. Rates are around 69%, and they were even higher in some places, reaching 86% in mid-July.
The real estate market in Melbourne is changing, and for capital growth, things like population growth, gentrification, the quality of the neighbourhoods, and pay growth are important. After Covid, the idea of the 20-minute neighbourhood has become more popular. In these neighbourhoods, people can easily get to basic services and facilities. For homebuyers and businesses, being close to places where people want to live and go to school has become more and more important.
Best suburbs to invest in Melbourne 2023
We’ve put together a list of Melbourne’s best suburbs for investing in real estate in 2023 to help you find your way around this changing market. These areas have grown steadily over the years and have populations that point to long-term potential:
Glen Waverley, a growing suburb with a population of 40,333, caters to a more older clientele, with an average age ranging from 40 to 59. Glen Waverley’s real estate market offers a variety of possibilities, with a median house price of $1,450,000 and a median unit price of $692,000 for those looking for more economical living spaces. This area is especially hospitable to young families and professionals, providing them with access to excellent schools and vibrant commercial districts. Glen Waverley is an appealing place for people wishing to efficiently manage their career and family life due to its blend of outstanding education and business prospects.
Brighton’s real estate scene is characterised by grandeur and richness, with a median property price of $3,100,000 reflecting the city’s grand and affluent residences. The typical unit price for individuals looking for a more modest yet still high-end living space is $1,567,500. Brighton is known for its affluent people, magnificent mansions, and a variety of services that appeal to the wishes and expectations of its well-to-do community. The reputation of elegance and quality of living in this suburb continues to draw individuals who enjoy the finer things in life.
Bentleigh and East Bentleigh
Bentleigh East is a busy neighbourhood with a total population of 27,635. The average age of the people who live there is between 29 and 40 years old. Bentleigh East’s real estate market has a wide range of choices. The median house price is $1,600,000, which is good for people looking for large-family homes. The median unit price is $599,000. This neighbourhood is very popular because it is close to public transport and is becoming more and more popular with young families who want to live in a lively, well-connected neighbourhood. The reason Bentleigh East is so famous is that it’s easy to get to and gives people the chance to live a lively suburban life.
Ormond is a busy neighbourhood with 8,420 people. The people who live there are mostly between the ages of 20 and 39, giving the area a lively, young vibe. Ormond has a wide range of real estate options. The median house price is $1,680,000 for large family homes, while the median unit price is $500,000 for cheaper options. Ormond has a mix of owner-occupied homes, which creates a sense of community and security. It also has a lively atmosphere with lots of cafes, shops, and great schools. The suburb also has great public transport, which makes it a great choice for young workers, families, and people who want to live in a lively, well-connected area.
With a typical house price of $1,850,000, Caulfield’s real estate market is known for being wealthy. This makes it a good choice for people looking for high-end homes. The typical unit price is $630,000, which is good for people who want to find cheaper housing. Caulfield is unique because it has great bus and train networks that make it easy for people to get around. Because of this, this neighbourhood is very popular with people who want to live in a mature community close to the city centre of Melbourne.
Parkdale is a quiet beachside neighbourhood with 11,744 residents. The average age of the people who live there is between 40 and 59 years old. There are nice homes for sale in Parkdale, with a median house price of $1,300,000 and cheaper homes for sale, with a median unit price of $600,000. Parkdale is unique because it is right on the beach, which makes it a great choice for people who want to live by the water. The neighbourhood is also proud of its great schools, which give families a good education, and its easy access to public transport, which makes going to the city and other places easy. These things make Parkdale a good place to live for people who want to live in a quiet but well-connected neighbourhood.
Mordialloc, a highly desirable lifestyle suburb with a population of 8,166, attracts a younger generation, with an average age ranging from 35 to 45. Mordialloc’s real estate market provides a variety of possibilities, with a median house price of $1,250,000 and a more economical option with a median unit price of $577,000. Mordialloc’s ideal location near the beach is one of its main draws, offering people an enticing coastal lifestyle. Furthermore, the area has a bustling cafe culture and excellent transport alternatives, making it an appealing place for individuals looking for a well-rounded and vibrant community with easy access to services and the beach.
This family-oriented coastal community of 10,234 people caters to a senior clientele, with an average age range of 40 to 59. The real estate market in this attractive locale offers a variety of alternatives, with a typical house price of $1,950,000 for those looking for spacious family homes and a median unit price of $650,000 for those looking for more compact yet comfortable living spaces. This suburb’s easy access to a multitude of amenities is one of its main draws, making it a great choice for families wishing to enjoy the relaxing coastal lifestyle while having needed services and comforts at their fingertips.
With a population of 13,606, this upscale eastern suburb caters to a mature clientele, with an average age ranging from 40 to 59. This area’s real estate market provides a taste of luxury, with a median house price of $2,000,000, as well as more reasonable investments, with a median unit price of $727,000. The neighbourhood is recognised for its busy shopping town, which offers inhabitants high-end retail experiences. It also provides investment opportunities in older villa apartments, making it an interesting choice for individuals interested in real estate projects. This eastern suburb’s attraction stems from its blend of wealth and investment opportunity.
Box Hill’s real estate market offers a variety of possibilities, with a median house price of $1,400,000 and a more economical option with a median unit price of $547,000. This suburb is well-known for its excellent shopping and schools, making it a popular choice for families. Its cosmopolitan ambience and first-rate amenities have also made it a magnet for international purchasers, adding to the community’s diversity and dynamic character.
Because of their demographics, neighbourhood appeal, and easy access to basic services, these suburbs have the possibility for long-term growth. Knowing about these local factors can help you make smart investment choices as you move through the changing real estate market.
Keep in mind that the growing tide that once lifted all boats has gone out, and these things are what will determine future capital growth. Melbourne’s property market is diversified, and by focusing on strong and stable neighbourhoods, you may position yourself for success in this new stage of property investment Melbourne.