Singapore is one of the world’s great cities — no argument there. But it’s also one of the world’s most expensive places to own property. With Additional Buyer’s Stamp Duty now sitting at 60% for foreigners purchasing residential property, the dream of a second home or investment asset in the Lion City has moved well out of reach for most. So it’s little wonder that Australians and Singaporeans alike are looking south.
And when they do, Melbourne tends to be the first city that comes to mind — often the only city. There’s good reason for that. Melbourne’s reputation precedes itself: the climate is familiar, the coffee culture is world-class, and the university campuses — from Melbourne Uni to Monash — are household names across Southeast Asia. Decades of aggressive marketing to overseas buyers have made Melbourne the default answer to the question of where to invest in Australia.
But “default” and “best” aren’t always the same thing. Let’s take a proper look at what Melbourne is actually offering right now — and whether it still deserves that top billing.
Our team at Property NXT Australia has witnessed firsthand how the Melbourne market provides a solid foundation for the wealth of expats. For Australians now residing in Singapore, realestate melbourne is the best investment option for the following reasons.
1. First, the Value Gap and the Importance of Timing
While Perth’s prices have skyrocketed, Sydney’s have gotten ridiculously high, as anyone keeping tabs on the Australian market from Singapore can tell you. Real estate in Melbourne, on the other hand, has been through a period of consolidation. Here we have the “Goldilocks” zone for investors.
There is a large price difference between Sydney and Melbourne, despite the fact that the two cities’ median home values have behaved similarly in the past. Nothing about Melbourne is “weak”; what it does indicate is that it is underappreciated. Major bank economists are projecting a robust recovery in 2026 and 2027, so if you invest in real estate in Melbourne now, you may benefit from the inevitable “catch-up” growth that follows these cycles.
2. The Impact of the "Metro Tunnel" and Other Innovative Infrastructure
The infrastructure of Melbourne is currently being renovated to the tune of about $100 billion. The Metro Tunnel, which is expected to open in early 2026, is the most important one for real estate investors. The “commutability” of numerous important corridors will be drastically altered by this initiative.
Purchasing real estate in Melbourne is more than just purchasing a piece of property; it’s an investment in a city that is constantly growing and developing. Previously undeveloped suburbs are becoming popular destinations thanks to the Suburban Rail Loop, new train connections, and hospital precincts. To make sure our clients purchase in the path of advancement, we at Property NXT Australia track key infrastructure milestones.
3. Top Melbourne Suburbs for Investment in 2026
If you want to find the greatest suburbs in Melbourne to invest in, you have to go outside of the city centre. The typical Singaporean Australian’s dream is to own a highly rentable “set and forget” property.
Suburbs such as Cranbourne and Pakenham in the South-East Growth Corridors provide affordable entry points (often under $700,000) and consistently high rental yields of 4% or more. Young families love these places, so there’s a steady stream of tenants.
Resilience in the Middle Ring: Vacancy rates have fallen below 1% in Bayswater and Ringwood, among other areas. These suburbs will provide city-edge convenience at a fraction of the price tag of the inner-east once the Metro Tunnel opens.
Blairgowrie, on the Mornington Peninsula, has experienced phenomenal capital growth of more than 50% in the past five years, making it an attractive option for individuals seeking luxurious vacation rentals or a “sea-change” property for potential repatriation.
4. Making the Most of Your Expat Benefits
There is a prevalent misconception that purchasing from Singapore is “too difficult” because of regulations set by the Foreign Investment Review Board (FIRB) or because of financing restrictions, according to Property NXT Australia.
In fact, you’re in a very advantageous position because you’re an Australian citizen. Many Australian lenders will continue to provide low interest rates on foreign income, and you won’t often be subject to the same “foreign buyer” levies as non-citizens.
Everything hinges on having “boots on the ground.” In the time between your Tiong Bahru brunch and your Bali flight, you probably can’t return for an open house every Saturday morning. A committed partner is crucial in the situation. While you concentrate on your Singaporean profession, we’ll be keeping an ear to the ground and doing digital walkthroughs and due diligence.
5. A World of Unpredictability
Stability is highly valued by both Singaporeans and expats. Local investment may be out of reach due to the high ABSD for second homes, notwithstanding the efficient Singaporean property market.
A more open, regulated, and historically stable option is available in real estate melbourne. Due to the “rental squeeze” and the citywide vacancy rate of roughly 1.1%, your Melbourne investment property will likely be rented out from the get-go, allowing you to pay your mortgage and enjoy the compounding of your capital gains.
Property NXT Australia: Why Work Together?
Not only are we real estate advisors, but we are also foreigners. Our company’s namesakes, Luke Pervan and Cilla Burgmann, have spent more than ten years as expats in Singapore. We get it; there are financial factors (SGD vs. AUD), unique tax ramifications, and the sentimental need to “secure a piece of home.”
Whether it’s off-the-plan flats in the CBD or house-and-land packages in the booming northern and south-eastern corridors, we are experts at linking Australians in Singapore with high-performing realestate prospects in Melbourne.
Property NXT
