Is it worth buying an apartment in Melbourne? Should you buy an apartment or rent one? If you want a one-liner answer: “Yes, it is worth buying an apartment in Melbourne.” But, there is much more to consider before jumping into the investment property.
Apartments can be a great investment opportunity due to the low maintenance and apartment fees. The Australian market has witnessed an increase in buying instead of renting, as it provides the option of reselling apartments at a higher price.
Ownership of an apartment also allows you to make any changes you like. Keep reading if you are interested in buying or renting an apartment in Melbourne to make it your home.
Reasons for buying an apartment in Melbourne
Melbourne has many safe suburbs and is a beautiful city that’s only getting better. Like the rest of Australia’s major cities, the property market is always thriving. Following are the several reasons to love living here, and they’re all good reasons for buying an apartment in Melbourne.
1. A rewarding decision
Investing in city apartments is a smart and profitable move. The residents of these homes tend to be young families and professionals who come from all walks of life. As the average household size decreases, you can capitalise on the demand for smaller, more efficient residences by buying into this market.
2. Convenience
City living is all about convenience, options, and location. Melbourne apartments are convenient because they’re close to shopping, public transportation, and entertainment venues. There are plenty of lifestyle options in Melbourne apartments, which makes the city an excellent place for young professionals to work or play.
3. No need to break the bank
Increased demand for low-cost property across Australia has increased housing value, making this a great time to buy. You can still buy apartments for rent in Melbourne at affordable prices, even if you are late for this opportunity. Property value rises 15% yearly in Melbourne, and it’s only getting more expensive, so don’t wait.
What to look for when buying an apartment
When looking at market rates, it can be tough to decide if it’s worth buying an apartment in Melbourne. The city is one of the most expensive in Australia and most popular for expats and locals.
If you’re wondering whether or not it’s worth leaping real estate, consider these factors:
1. What kind of apartment are you looking for
The first thing to consider is the type of apartment you’re looking for. A one-bedroom apartment might be the perfect place to stay while you focus on achieving your career goals. Or maybe it’s a larger place with multiple bedrooms and separate spaces for guests.
Ensure parking, accessibility, ventilation, and natural light in the apartment complex. Whatever your needs are, ensure they match what’s available in the market.
2. Location is important to consider
The location should be a critical factor in buying an apartment, as it can significantly impact the property’s value.
If you’re looking at apartments in Melbourne, make sure they’re close enough to public transportation or other amenities like grocery stores. Getting around town won’t be a hassle for you or your family.
3. Affordable prices
Melbourne is growing in popularity, and so are apartment prices in Melbourne. As the value of housing increases, so do the prices. The housing value is around $554,306 for a unit as of late 2022.
Besides, the average body corporate fees in Melbourne is around $2000-$4000 per annum.
Melbourne apartment prices are based on the number of bedrooms in each apartment and, for instance, utilities when renting in Victoria.
How much is an apartment in Melbourne?
Melbourne unit prices are low compared to other bigger cities in Australia. For instance, average strata fees in Melbourne is comparable to Sydney’s but much cheaper.
The median price or apartment fees in Melbourne is just $918,350. Note that Melbourne’s house price growth is stronger than unit prices.
Do apartments appreciate the value in Melbourne?
Do apartments in Melbourne go up in value? Definitely, yes!
According to a report from Victoria State Government, which analysed Australia’s capital city property markets for the last year, apartment prices have increased between 10.0% and 9.4% on average in Melbourne and Victoria, respectively.
A green signal for buying an apartment in Melbourne!
Are apartments a good investment in Melbourne?
With one of the strongest economies in the world, Melbourne is a great place to invest. This is especially true for apartments, which are gaining popularity as investment-grade properties.
While most people consider urban homes, apartments in Melbourne suburbs often offer better net returns and less risk. Still, you can take strategic property advice from Soho for you and your family.
Why are new development Melbourne apartments so cheap?
The Melbourne property market is seeing a massive influx of new apartment developments, increasing the city’s supply faster than it can be absorbed. It’s pushing property prices down and attracting investors looking for safe investments.
Also, during the pandemic when borders were shut, the market for rental units plummeted. This was especially impacted by the lack of international students moving to Melbourne for their studies.
Which suburbs will boom in Melbourne?
Like real estate markets across the globe, apartments are appreciating at an incredible rate in Melbourne. This is particularly true for inner-city areas such as East Melbourne, Caulfield South, and Moorabbin.
However, the capital growth rate can vary significantly from suburb to suburb, and investors should consider this when deciding where to buy an apartment.
Will Melbourne house prices drop in 2023?
According to its internal documents, the Reserve Bank of Australia (RBA) has estimated that housing prices will decline by 11% in the next year.
Besides, Melbourne’s median house price is forecast to drop by 16% over the year, according to a new report by CoreLogic.
In Conclusion
- Stand-out Melbourne apartment prices are expected to go down in 2023, which makes it an excellent opportunity for real estate agents and property investors.
- It is better buying an apartment in Melbourne than to rent one because of the apartment’s average cost, lower body corporate fees, and less maintenance.
- Melbourne apartments in central locations or growing suburbs have a better resale value.
If you are unsure about whether it is worth buying an apartment in Melbourne or not, let Soho help you with strategic and tailored financial planning!
