Regional cities within striking distance of Melbourne are proving popular with property investors, as improved transport links and infrastructure make them more accessible and appealing.
They are also increasingly self-sufficient hubs, offering new employment opportunities, more affordable housing and a relaxed lifestyle.
Where can you find Victoria’s investment property hotspots?
Bayside
Bayside has the most expensive rent across Victoria and dwelling values are forecasted to continue increasing.
According to the March 2019 CoreLogic Home Value Index, a house for rent in the seaside suburb costs a median of $824 weekly, while units for rent are priced at a median of $520 a week. The asking rent has climbed from $810 for houses and $500 for units in 2017 despite being a challenging period for Melbourne’s property market.
Geelong
Geelong offers buyers increasing affordability and less competition in the area’s softening property market. The suburb of Whittington, 4km from Geelong’s town centre, is a standout.
Despite being mere steps apart, the median house price in East Geelong is $651,000 compared to Whittington’s $360,000, leaving plenty of potential for capital growth.
According to CoreLogic, the area is still recording positive growth annually, with the median value 1.2 per cent higher than the same time last year.
Browse cheap houses for sale in Geelong to find affordable suburbs. Or check out the best suburbs in Geelong that most people choose to move to.
Ballarat
Ballarat has been a national star over the past twelve months, with its 6.6 per cent price growth making it the third strongest regional city nationally. With improved rail and bus links to Melbourne, Ballarat has benefited from its relationship with the state’s capital city.
However, the city of Ballarat has its own thriving economy and one that looks set to continue to grow in the coming years. There is also strong evidence of a shifting demographic in the city, as more and more people from Melbourne either move to or invest in Ballarat homes.
One suburb in particular, Alfredton, has welcomed more than 700 new residents in the past year alone according to Australian Bureau of Statistics data reports.
Mooroolbark
Mooroolbark is a suburb located about an hour from the Melbourne CBD, making it highly accessible. This in demand suburb has experienced significant and consistent growth over the five years.
Over the year to December 2018, both houses and units recorded price drops of 7.4 per cent and 6.1 per cent respectively. Rents also continue to rise and have reached weekly rates of $420 for houses and $380 for units.
Viewbank
Viewbank is located just over 10km northeast of Melbourne’s CBD and is a picturesque suburb bordered by the Yarra and Plenty Rivers. Units are the winners of the property market. Values have consistently risen over the last five years, taking the median price to almost $650,000.
Houses fell behind during this period, with values declining by nearly 10 per cent to a median of $931,482. However, the area is predicted for continued growth with the market for units performing exceptionally well, at over 6 per cent growth in the year to December 2018.
Do your research
If you are serious about property investment there is a wealth of research data available to help you identify the suburbs with the highest growth potential.
PropCalc uses property-specific information to provide you with the real cost to owning a property. Use the generated information or add your own for a personalised estimate.
Key suburb data is provided and the tool features the ability to include changes in interest rates, maintenance costs, rates, insurance and more, making property research a breeze.
Look for investment properties where:
- Major infrastructure projects are planned or in the works, as these will improve the local economy, jobs market and lifestyle
- There is low supply and high demand, as this will drive property prices higher
- The rental yield is rising, as this indicates there is strong demand for rental accommodation in the area
- The local population is growing and there is a lot of renovation activity as well as new shops and cafes opening
