Melbourne, which has long been known for its consistent capital growth, has lost some investors’ favor in the past 12 to 18 months due to high interest rates and tax measures implemented by the Victorian Government. Nevertheless, despite the unfavorable sentiment, increased taxes, and the post-COVID recovery, investing in Melbourne property offers more value and a plethora of opportunities for investors who are adaptable to changing conditions.

Why investing in Melbourne property in 2025 can be an excellent long-term move?

Now might be the perfect moment to invest in Melbourne property and enjoy the benefits of investing in a market with less competition among investors, assuming they choose the right property type and location. The basic reasons for investment in Melbourne property are still favorable due to the city’s high rental demand, low vacancy rates (which hover around 1.64%), growing population, and a lack of construction projects entering the market.

Top Reasons to Invest in Melbourne Property

There are several reasons why investing in Melbourne property and consulting property investment advisors is beneficial. The main reasons Melbourne is a popular and perhaps lucrative destination for real estate investors are listed below.

Massive growth in population

By 2051, Melbourne, one of Australia’s fastest-growing cities, is expected to have grown from 4.6 million to over 8 million residents, bringing Victoria’s total population to 10 million. Because of its appealing lifestyle, economic prospects, and net internal migration, it attracts more people than it loses from other states because of lower property and living expenses. The rental and home-occupier markets will see increased demand for homes as a result of this continued growth, which is expected to provide a solid foundation for rising property values.

Economic stability

Melbourne, a major Australian economic hub, has a diverse economy with strongholds in manufacturing, technology, healthcare, education, and finance. The city has a 10-year economic development plan to keep growing the economy and attracting and retaining better-paying employment, and more Victorians are employed than ever before. It is expected that Melbourne’s employment will rise by 32% by 2043. In addition to maintaining economic stability and lowering the possibility of risk involved in property investing, the strong job market will support the rental market by maintaining high rents and low vacancy rates.

High rental demand

Melbourne’s diverse workforce, high student population, and high number of young professionals all contribute to the city’s ongoing demand for rental properties. For property investors, strong demand ensures a consistent flow of money. Melbourne’s median weekly rent increased 6.4% to $540 in the 12 months ending in December 2024, with middle-ring suburbs and inner cities seeing the highest demand.

Why now is the best time to invest in Melbourne property?

Investing in Melbourne property, one of Australia’s popular housing markets, offers investors a lot of opportunities. Although there hasn’t been a noticeable decline in the Melbourne property market, the subdued growth in comparison to other major cities points to robust growth as the market rebounds.

Are you ready to move forward in your property investing journey?

Contact your trusted property investment advisors, Equimax Property Group, to start building a profitable investment portfolio in Melbourne today! Our team of experienced professionals is available to help you at every stage of the process. For more information and to book your appointment, visit www.equimaxpropertygroup.com.au