Suburb Profile – Melbourne CBD
The city of Melbourne is one of Australia’s leading property markets, offering investor’s strong rental yields and annual capital growth.
While investment performances across the country have moderated, Melbourne’s market continues to grow. Results from the month of October show the average value of property investments in the Melbourne rise by 1.9 per cent, in contrast to Hobart and Canberra that saw falls of 2.4 per cent and 2.3 per cent, respectively.
Over the past year, home values in Melbourne have risen almost 12 per cent, with the median price now sitting at $570,000 according to RP Data. The median unit price has also risen to $460,000 as clearance rates hold above 70 per cent. The rising prices of Melbourne dwellings have returned a high year-on-year growth rate of 8.9 per cent, second only to Sydney.
Rental yields for Melbourne property are also strong, particularly for one-bedroom apartments. In 2013, the average rental yield for a one-bedroom apartment in Melbourne was 5 per cent, compared to 4.4 per cent for a two-bedroom apartment. As of September 2014, the median rent for one bedroom unit in Melbourne was $341 per week, according to the Real Estate Institute of Victoria.
The Economist Intelligence Unit has ranked Melbourne as the most liveable city in the world for four consecutive years. Scoring high results for healthcare, education and infrastructure, Melbourne is a city with great commercial and cultural opportunities.
It is home to the Eureka Tower, one of the world’s tallest skyscrapers, a rapidly growing tech and media industry and a vibrant cultural and artistic scene. World-renowned galleries sit beside Michelin-starred restaurants; boutique fashion houses neighbour intimate wine bars; and popular events like the Australian Open, Melbourne Cup Carnival and Melbourne Fashion Week fill the yearly calendar. Residents can also enjoy outdoor recreation in the city’s many parks including the Royal Botanic Gardens, Herring Island Park and Port Phillip Bay beaches. With such high liveability rankings, Melbourne is set to remain a city with long-term growth potential.