Melbourne, one of Australia’s most vibrant cities, presents an extraordinary opportunity for property buyers. Unlike Sydney, where property prices have surged to record highs, Melbourne offers incredible affordability. Right now, the median house price in Melbourne is about 41% cheaper than in Sydney—a historic difference! This gap, the largest in 20 years, provides a rare opportunity to buy into one of the most livable cities at a significant discount.
The Market at a Glance
Affordability and Upside Potential:
Melbourne’s housing market offers a unique opportunity, with property prices 41% lower than Sydney’s, marking the biggest price gap in 20 years.
A typical Sydney house now commands a 70% premium over Melbourne, a difference of over $600,000.
This historic low in relative prices means that Melbourne is positioned for significant potential growth, offering strategic buyers substantial value.
Tight Rental Market:
Vacancy rates are historically low, hovering around 1.5%. This scarcity, combined with strong rental demand, makes Melbourne an appealing choice for property investors.
With rentals projected to rise further, you can expect solid returns on your investment.
Population Growth Driving Demand
Victoria’s population grew by 2.7% over the year to June 2023, the highest rate in Australia, adding around 181,800 people.
Melbourne, now home to 5.8 million residents, is projected to reach 8 million by 2050, necessitating 1.5 million new dwellings.
This rapid growth is driving housing demand, keeping vacancy rates low, and bolstering rental prices, while major infrastructure projects like the Metro Tunnel and Suburban Rail Loop are set to further attract residents to Melbourne’s expanding suburbs.
This historic low in relative prices means that Melbourne is positioned for significant potential growth, offering strategic buyers substantial value.
