Last updated on September 5th, 2023
best places to buy investment properties in victoria
Key Takeaways
- As a leading capital city, Melbourne is home to a strong economy and offers a solid labor market and great quality of life. Thanks to this, real estate investors are able to earn a nice passive income through rental properties.
- Discover the benefits that real estate investors have when investing in Melbourne, VIC.
- The 10 most profitable neighborhoods and nearby cities in Melbourne, Victoria are revealed! Also their recommended property types & corresponding Airbnb data.
Introduction
Bordered by the impressive Great Australian Bight and the Tasman Sea lies the small yet beautiful state of Victoria. This is a picturesque state with charming coastal towns and mountain villages that offer the most striking views. In Victoria, there’s a wide array of tourist attractions and activities to suit everyone’s taste.
The capital of Victoria, Melbourne, is the sporting, cultural, and financial center of the state. It’s home to many renowned landmarks such as the National Gallery of Victoria, Princess Theatre and Melbourne Skydeck. Furthermore, Melbourne is one of the 42 UNESCO Cities of Literature thanks to its vibrant literary scene!
Melbourne is also one of the most profitable Airbnb cities in Australia according to the top rental market stats. Additionally, Airbnb cited Melbourne as one of the top family destinations in Australia. They even stated that the city is a trending travel spot for 2023 international travel.
In this article, we’ll feature the best places to buy investment properties in Victoria including the top neighborhoods in Melbourne. You will discover some of the expectations for real estate investments in this city. Continue reading to learn more!
Reasons to invest in real estate in the suburbs of Melbourne, VIC
Owning rental properties in Melbourne can allow you to generate a good income stream because it offers attractive investment opportunities to investors. But what are the main reasons why investors should consider investing in Melbourne?
Check out some of the reasons why doing real estate investment in Melbourne is a profitable idea:
Great living conditions
Considered one of the most liveable cities globally, Melbourne offers the best living conditions for residents. The city has world-class infrastructure, top-tier universities, and a reliable healthcare system.
Living in Melbourne means that you will be living in a safe, clean, and multicultural environment while enjoying top-quality amenities. No wonder Melbourne is the most populous city in Australia and its population is projected to continue growing in the coming years.
Stable and diverse economy
Melbourne boasts a strong and stable economy that accounts for around 25% of Australia’s GDP. Its diverse labor market allows people to find great employment opportunities in different sectors such as tourism, healthcare, science, technology, trade, and entertainment among others.
Victoria’s capital city is the leading financial center of Asia-Pacific region and it ranks 28th in the Global Financial Centres Index 33. Moreover, Melbourne holds the 42nd spot on the Global Start-ups Ecosystem Index.
Lots of things to do!
Melbourne is a multicultural city where over 260 different languages are spoken. The city offers an extraordinary cultural, dining, and arts scene with no shortage of leisure activities, shopping and events.
If you’re looking for outdoor activities, cultural experiences, or even want some retail therapy, then you will love Melbourne. There’s no lack of museums, parks, chick boutiques, and great restaurants. On top of that, we must add that the city offers a lively nightlife and hosts renowned festivals and events throughout the year.
Top market for Airbnb investment properties in Australia
Are you still uncertain about investing in Melbourne? Then let us add another positive factor: it’s one of the best places for Airbnb investment properties in Australia! Melbourne offers many profitable opportunities for real estate investors. For this reason, if you aim to achieve financial freedom by owning a positive cash flow property in Victoria, then you should consider starting an Airbnb listing in Melbourne because it can help you create a nice rental income easily.
Is Airbnb Profitable in Melbourne, VIC?
Are you concerned that your investment property in Melbourne or the surrounding areas won’t give you a good rental return? Take it easy! Airbtics confirms that investing in real estate in Melbourne is financially rewarding.
However, investors like you should keep in mind that the level of profitability depends on the property type and location. Other than that, it’s also a good idea to consider the Airbnb Rules in Melbourne so that you can run your listing smoothly.
Based on Airbtics’ data, an Airbnb host can expect an average annual revenue of A$73,019 and a median occupancy rate of 88% for operating a 2-bedroom property in Melbourne. With over 6,291 Airbnb listings and a seasonality of 29%, Melbourne certainly is a catch for property investors!
Top 10 Suburbs and Nearby Cities to Invest around Melbourne, VIC
Melbourne is the largest and most populous city in Victoria with more than 321 designated suburbs. Furthermore, there are many interesting cities located nearby as well. Hence, it can be a challenge to choose the best location to buy an investment property in Melbourne.
Check out the best suburbs and nearby cities in Melbourne, VIC that are highly recommended for rental properties:
1. South Melbourne
- Total Number of Airbnb Listings: 113
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): A$700,000
- Airbnb Annual revenue: A$87,703
- Gross rental yield: 12.53%
2. Richmond, Melbourne
- Total Number of Airbnb Listings: 185
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): A$660,000
- Airbnb Annual revenue: A$79,070
- Gross rental yield: 12%
3. St Kilda, Melbourne
- Total Number of Airbnb Listings: 346
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): A$580,000
- Airbnb Annual revenue: A$71,048
- Gross rental yield: 12.25%
4. North Melbourne
- Total Number of Airbnb Listings: 120
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): A$555,000
- Airbnb Annual revenue: A$69,486
- Gross rental yield: 12.52%
5. Brunswick, Melbourne
- Total Number of Airbnb Listings: 135
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): A$570,000
- Airbnb Annual revenue: A$62,814
- Gross rental yield: 11.02%
6. Healesville, VIC
- Distance from Melbourne: 64 kilometers
- Total Number of Airbnb Listings: 141
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): A$580,000
- Airbnb Annual revenue: A$76,969
- Gross rental yield: 13.27%
7. Greater Geelong, VIC
- Distance from Melbourne: 74 kilometers
- Total Number of Airbnb Listings: 294
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): A$49,000
- Airbnb Annual revenue: A$61,579
- Gross rental yield: 12.57%
8. Torquay, VIC
- Distance from Melbourne: 103 kilometers
- Total Number of Airbnb Listings: 409
- Best bedroom size: 4 bedrooms
- Median property price (4 bedrooms): A$950,000
- Airbnb Annual revenue: A$95,243
- Gross rental yield: 10.03%
9. Daylesford, VIC
- Distance from Melbourne: 114 kilometers
- Total Number of Airbnb Listings: 368
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): A$785,000
- Airbnb Annual revenue: A$95,187
- Gross rental yield: 12.13%
10. Ballarat, VIC
- Distance from Melbourne: 116 kilometers
- Total Number of Airbnb Listings: 283
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): A$470,000
- Airbnb Annual revenue: A$51,226
- Gross rental yield: 10.90%
Takeaway
In summary, rental properties in Melbourne offer favorable investment opportunities to real estate investors. There are plenty of profitable suburbs as well as a few of promising cities that guarantee the best rental returns around Melbourne, Victoria. This is why we recommend making use of Airbtics’ free Airbnb profit estimator so that you can stand out among your competitors.
Discovering the best places to buy investment properties Airbnb in Victoria is an excellent way to start your Airbnb journey. But you should aim further and make use of the Airbnb analytics tool! This way you can make data-based decisions and improve your property investment strategies.
