MARKET FOCUS : VICTORIA

Melbourne and Geelong property investment: here's the current lowdown.

Melbourne is one of Australia's deepest and most liquid property markets. Long-term fundamentals are strong. Here's where we're focused, what we're buying, and what we'd steer clear of.

Learn about SPARK

At a glance

Melbourne is Australia's largest city by population and one of its deepest property markets. A broad employment base, strong migration, and ongoing infrastructure spend support consistent owner-occupier and rental demand across cycles. Universities, biomedical and health precincts, extensive public transport, and large parklands keep demand broad and sticky. Geelong adds an affordable, growing alternative within easy reach.

"Melbourne is one of Australia's deepest and most liquid property markets."

$915k

MEDIAN HOUSE PRICE

$610k

MEDIAN UNIT PRICE

3.8%

GROSS RENTAL YIELD

+4.2%

YOY PRICE GROWTH

1.1%

VACANCY RATE

Why invest

Population & employment depth.

Melbourne's employment base spans finance, health, education, and professional services, not reliant on a single industry. Population is growing faster than new supply is being delivered. Melbourne is forecast to overtake Sydney as Australia's largest city within the decade.

Infrastructure pipeline.

Metro Tunnel (open 2025), West Gate Tunnel, and the Suburban Rail Loop represent decades of committed infrastructure investment. These projects expand the map of viable investment precincts for buyers who understand which catchments they serve.

Rental demand depth.

Demand is sustained by international students, skilled migrants, healthcare workers, and a large professional workforce. Inner-north and inner-west precincts in particular have consistently low vacancy and strong tenant quality.

our view

Melbourne's fundamentals are solid.

Melbourne's fundamentals are solid even if recent years have been bumpier than SEQ. Population growth is real and durable. The infrastructure pipeline is substantial and committed.
We focus on the growth corridors for new build house and land -- Western (Werribee, Sunbury) and South-East (Cranbourne, Berwick) -- and selected inner-north precincts for townhouses and units where rental demand is consistently strong.
We're honest about the pockets we'd avoid. Inner-city CBD-adjacent apartment oversupply is real in some precincts, and we steer clients away from it. Selectivity within the growth corridors also matters -- not all estates and developers are equal.

"Geelong is a genuine affordability play."

Geelong

Geelong is a genuine affordability play relative to Melbourne, with a growing population base, coastal lifestyle appeal, and entry prices that work well for first-time overseas investors.
The employment base is diversifying -- health, education, and professional services are growing alongside Geelong's traditional industrial base. The NDIS and aged care sector provide meaningful rental demand anchors.
For investors with realistic budgets who want a foothold in the Victorian market without Melbourne's premium pricing, Geelong is worth a conversation.

What to buy

Townhouses in middle-ring suburbs accessible entry, strong rental demand
House & Land in the Western Growth Corridor (Werribee, Sunbury, Melton)
House & Land in the South-East Growth Corridor (Cranbourne, Berwick, Officer)
Units in inner-north high-demand rental pockets (Footscray, Preston, Brunswick)
Geelong house and land and townhouses at accessible entry points

Watch out for

Inner-city CBD-adjacent apartment oversupply is real in some Melbourne precincts -- particularly one-bedroom sub-50sqm stock in Docklands, Southbank, and parts of the CBD. High strata levies, elevated vacancy in some pockets, and weak resale demand from owner-occupiers make this product difficult to hold and harder to exit. We don't recommend it.

Infrastructure & growth drivers

Metro Tunnel	Open 2025, transforms east-west connectivity
West Gate Tunnel	Underway, significant for the western growth corridor
Suburban Rail Loop	Fully committed, major long-term impact on middle-ring suburbs
International student population	Anchor for consistent rental demand
Population growth	Melbourne growing faster than any other Australian capital
Geelong rail and infrastructure	Ongoing investment in health, education, and connectivity

FIRB note

Foreign buyers are generally limited to new builds -- which makes off-the-plan apartments, house and land packages, and new townhouse projects the right focus. Strong developer supply in both growth corridors. Avoid purchasing established property as a foreign buyer without specific FIRB advice.

Melbourne and Geelong property investment: here's the current lowdown.

At a glance

SEQ market snapshot

Current performance metrics