If you’re looking to invest in property, there are several things you’ll need to take into account: the cost, the rental yield, and the likelihood that your property continues to increase in value over time.
Melbourne property is highly sought after – but what kind of return on your investment can you expect from purchasing there? And what were the best suburbs to invest in Melbourne in 2020?
Using the latest data from realestate.com.au, we’ve compiled a list of this year’s 10 best suburbs to invest in Melbourne, based on the yearly median sale price, the year-on-year change in the median sale price, and the average rental yield for properties in these suburbs.
1: Tyabb, Average Rental Yield of 3.98%
Tyabb is Melbourne’s best suburb to invest, with a median sale price of $892,500 and is also the cheapest on the list of top ten.
55 kilometres south of the CBD on the Mornington Peninsula, Tyabb’s year-on-year change in the median sale price is 47% and the yearly rental yield is 3.98%.
Picture: realestate.com.au
2: Collingwood, Average Rental Yield of 3.4%
Following Tyabb is the eclectic inner-city suburb of Collingwood.
Collingwood costs a pretty penny to invest in, with a median sale price of $1,140,000. The year-on-year change in sale price sits at 30%, while the rental yield is 3.40%.
The inner-city ‘burb of Collingwood is perfect for those that love warehouse-style homes. Picture: realestate.com.au
3: Hughesdale, Average Rental Yield of 2.46%
15 kilometres southeast of the CBD is Hughesdale, the third-best suburb to invest in Melbourne. With a median sale price of $1,362,000, Derrimut is the fifth-most expensive suburb to invest in our list.
Hughesdale has a year-on-year change in the median sale price of 28% and a rental yield of 2.46%.
Leafy Hughesdale is next to the popular shopping hotspot, Chadstone. Picture: realestate.com.au
4: Box Hill South, Average Rental Yield of 2.38%
Box Hill South comes in next, 15 kilometres east of the CBD.
Box Hill South has a median yearly sale price of $1,281,444, that’s a change of 28%. The rental yield is a positive 2.38%.
Family-friendly Box Hill South is located in Melbourne’s east. Picture: realestate.com.au
5: Kensington, Average Rental Yield of 3.03%
Situated much closer to the city is Kensington, just 4 kilometres north-west of the city.
Kensington has a median sale price of $1,121,000 and a change in the median sale price of 25%%. The rental yield sits at 3.03%.
Located just 4km from the CBD is Kensington. Picture: realestate.com.au
6: Heidelberg, Average Rental Yield of 2.58%
Next is Heidelberg, 13 kilometres north-east of the city. Heidelberg has a median sale price of $1,269,900 and a yearly change in the sale price of 23%%.
The rental yield of Heidelberg also comes in at sixth-place at 2.58%.
Heidelberg is in Melbourne’s northeast. Picture: realestate.com.au
7: Aberfeldie, Average Rental Yield of 2.30%
Aberfeldie comes in eighth, situated on in the north-west just 9 kilometres of the city along the banks of the Maribyrnong River.
It has a costly median sale price of $1,657,500 and a year-on-year change in the sale price of 23%%. The rental yield here is slightly lower than Heidelberg, at 2.30%%.
Aberfeldie is a suburb that sits on the banks of the Maribyrnong River. Picture: realestate.com.au
8: Murrumbeena, Average Rental Yield of 2.51%
Coming in eighth in the south-eastern suburbs of Melbourne is Murrumbeena, in rental yield of 2.51%.
The median sale price here is $1,410,500, while the year-on-year change in the median sale price is 22%%.
In Melbourne’s South East sits Murrumbeena. Picture: realestate.com.au
9: Park Orchards, Average Rental Yield of 2.86%
Park Orchards is the ninth-best suburb to invest in Melbourne.
The yearly median sale price here is $1,835,000, with a year-on-year change of 22%%. The rental yield comes in at a promising 2.86%.
Around 25km from Melbourne’s CBD sits leafy Park Orchards. Picture: realestate.com.au
10: Mont Albert North, Average Rental Yield of 2.22%
Rounding out the top ten for Melbourne’s best suburb to invest in is Mont Albert North, located around 14 kilometres east of Melbourne city centre. The median sale price for the past 12 months is $1525,000, and the year-on-year change in the median sale price is a notable 21%.
On top of that, the average rental yield is 2.22%. While not the highest rental yield in the top ten, Mont Albert North is the second on list in terms of change in median sale price.
Located around 14km from Melbourne’s CBD is Mont Albert North. Picture: realestate.com.au
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