Despite it being a challenging time for property investors in Victoria due to rising costs, investors will be wise to hang onto their assets as Melbourne transitions to Australia’s largest city. Population growth for both Sydney and Melbourne is projected to exceed 6M people in 2025 with Melbourne set to overtake Sydney as the largest capital city in 2026.
With Melbourne already facing a supply shortfall, property prices are forecasted to gain 8.5% in 2024 and a further 12% in 20251. Therefore, investors will be able to realise strong capital growth within the next 2-3 years. Compounding the supply issue is the cost of building which has risen dramatically post-COVID and has led to a large number of construction companies experiencing or facing financial difficulties. This will also underpin the value of existing dwellings, particularly if they are well maintained.
Miles Property Management service actively maintains your investment, not just for the sake of leasing but to ensure your valuable asset is protected and to avoid costly restoration in the future as well as to preserve the capital growth of your property. Miles Concierge Service is dedicated to providing the best trades and services with a price-beat guarantee and is available to all our RRP clients as well as the general public. If you need any maintenance completed before the close of 2023, please call Fiona Feely at Miles Concierge.
The Banyule/local market continues to perform strongly with the Melbourne-wide vacancy rate sitting at 2.3 per cent and Miles even lower at 0.89 per cent. Rental yields in Melbourne have climbed to 11.3 per cent over the last year2 - a record 12-month rise, and Ivanhoe East recorded the highest YOY rental increase3 for units in Melbourne, increasing 43.2 per cent.
Miles recently leased:
13 Waterdale Road, Ivanhoe a five bedroom period home located in the exclusive Fairy Hills pocket for $1350 per week.
18 La Trobe Street, Alphington a stunning brand new modern four bedroom home located in the new Yarra Bend Estate leased for $950 per week.
As always, please contact us should you wish to discuss anything regarding your property or to arrange an updated rental appraisal.
1. Australian Financial Review
2. The Age
