If you’re an investor looking to buy your next property in Melbourne, as well as a low-rate investment loan you’ll ideally want to purchase in an area where you will see solid growth, now and into the future.
With the strong property price growth over the past 18 months, it can be difficult to keep track of which suburbs are performing best.
Here at loans.com.au, we’ve put together a list of the top ten suburbs in Melbourne that have seen strong capital growth for house and unit prices over the past quarter according to the Real Estate Institute of Victoria (REIV). Rental yield data will also be listed as sourced from realestate.com.au.
If you’re looking to invest in a house instead of a unit, below are the ten top-performing suburbs in terms of house price growth over the most recent quarter (June to September 2021).
The suburb that recorded the strongest quarterly growth for house prices for the September quarter was Keysborough. House prices rose from $902,000 to $1.1 million, or by 22%. Rental yield for houses in Keysborough is 2.8% with an average weekly rent of $460.
Beaumaris recorded a 16.6% quarterly change, from $1,947,500 in June to $2,270,000, in September. The average weekly rent for houses in Beaumaris is $850 with an annual rental yield of 2.3%.
House values rose by 15.7% in Frankston South from $1,080,000 to $1,250,000. In Frankston South, houses are rented out for an average of $475 per week with an annual rental yield of 2.4%.
Ferntree Gully’s median house price rose from $840,000 to $968,000, or by 15.2%, from June to September. The average weekly rent for houses is $440 with a rental yield of 2.8%.
The quarterly change for house prices in Keilor East was 13.3%, with values rising from $927,000 to $1,050,000. The average weekly rent is $420 per week with an annual rental yield of 2.4%.
House prices rose from $2,565,000 to $2,876,000, or by 12.1%, in the September quarter. Houses are rented out in Camberwell for an average of $760 per week with an average rental yield of 1.6%.
House prices increased by 11.8% in Mount Martha from $1,630,000 to $1,822,500. Houses rent out for $650 per week with an annual rental yield of 2.4%.
Richmond’s median house price is up by 11.8% as well, from $1,480,000 to $1,655,000. Houses in Richmond are rented out for an average of $650 per week, with an annual rental yield of 2.4%.
House values rose from $2,265,000 to $2,525,000, or 11.5%, over the September quarter. The annual rental yield for Brighton East is 2% with houses renting out for $795 per week.
Wantirna South recorded a 10.6% quarterly median house price increase, from $1,180,000 in June to $1,305,000 in September. Houses rent out for an average weekly rent of $40 with an annual rental yield of 2.2%.
If a house isn’t on the cards, but you’re looking to invest in a unit, below are the ten suburbs that experienced the highest median price growth over the September quarter for units.
The strongest suburb for unit price growth for the September quarter was Malvern East, where unit prices increased by 62.5% from $720,000 to $1,170,000. Units rent out for an average of $380 per week with a rental yield of 2.9%.
Kensington recorded a 43.8% quarterly change, with prices up from $600,000 to $860,000. Rental yield for units is 3.9% and units typically rent for $395 per week.
The third highest quarterly growth was recorded for Bentleigh, with unit prices up from $965,000 to $1,385,000. Units rent for $450 per week with a rental yield of 3.3%.
Unit prices in Hawthorne East are more modest than the first three suburbs, up by 17.6% from $591,054 to $695,000. Units rent for an average of $380 per week with a 3.3% rental yield.
Doncaster East’s unit prices rose by 15.3% over the past quarter, up from $921,500 to $1,062,500. Rental yield for units is typically 2.8% with weekly rents sitting around $450.
Unit prices are up from $1,105,500 to $1,227,500 over the past three months, or up by 10.8%. Units typically rent for $520 weekly with a rental yield of 2.5%.
Unit prices rose by 10.5% in Toorak, from $950,000 in June to $1,050,000 in September. Rental yield for units in Toorak is typically 2.4% with the average weekly rent of $450.
Coburg’s unit prices were up by 10.4%, from $670,000 to $740,000. Units rent for $395 per week with a rental yield of 3.6%.
Unit values rose by 10.1%, from $665,500 to $733,000, over the past quarter. Annual rental yield is 3.1% for units that rent for $410 per week.
The cost to buy a unit in Cheltenham rose from $725,000 to $795,000, or 9.7%, over the September quarter. Units rent for $420 per week with an annual rental yield of 3.3%.
If you’re looking into buying your next investment property, loans.com.au can help find the right home loan for you. Make sure you check out some of loans.com.au's competitively-rated investment home loans. Applying is quick and easy with our 100% online application.
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