2024 has come and gone. As we step in 2025, let's look back into the year that's passed, and see how Melbourne has performed.
What Happened to Property Investors in Melbourne?
It's no secret. Melbourne has been the underperformer for the past 3 years, and the reasons are obvious. Billions were spent supporting the Victorian businesses and residents during the covid pandemic, leaving a significant gap in the state budget.
To address this, the government introduced a range of measures targeting property investors, including higher land taxes, taxes on short stay accommodations like AirBnB, and stricter standards for rental properties, etc, designed to improve the renter's living condition and to repair the budget hole. The result is not surprising. It hurt investment returns, and made investors think twice before looking at Melbourne.
The Turning Point for Melbourne Property Investment
Fast forward to 2024, and the tides are turning. While Perth and Brisbane continued their property booms, Melbourne quietly began to re-emerge as an attractive option for savvy investors. After three to four years of underperformance, Melbourne is now one of the most affordable Australia’s capital cities.
Investors are beginning to recognize Melbourne's enduring strengths:
Relatively lower property prices, making entry into the market more accessible.
World-class infrastructure that continues to support population growth and urban development.
A strong and diverse economy, offering stability and long-term investment potential.
High-quality tenants, including professionals and families drawn to Melbourne’s unmatched lifestyle and opportunities.
With these in mind, investing in Melbourne properties makes sense again. Concerns about higher land taxes have diminished, especially as other cities face rising land taxes and council rates, due to higher property values and higher insurance costs due to natural disasters. For many, Melbourne now represents a balanced, reliable, and future-proof investment opportunity.
When Will Melbourne's Property Market Boom?
The winds of change are sweeping through Melbourne’s property market. Interest began building in late 2024, with savvy investors seizing the moment to secure high-quality properties at attractive prices. The early movers have had their pick of exceptional opportunities, but stocks are rapidly dwindling as demand surges.
All signs point to Melbourne being on the cusp of a major property boom. This shift is visible in the heightened activity we’re witnessing on the ground—more interstate and overseas investors are engaging with our buyers advocate services, eager to take advantage of this opportune moment.
Why Melbourne is Poised for a Boom
Renewed Investor Confidence
After years of subdued performance, Melbourne has reclaimed its status as a desirable investment destination. Its affordability, robust economy, and growing population make it a market primed for significant growth.
Increased Buyer Activity
The data is clear: more investors are entering Melbourne’s property market, driving up competition for limited stock. This influx is creating a perfect storm for price growth.
Insights Backed by Expertise
At Concierge Buyers Advocates, we’ve been at the forefront of Melbourne’s real estate resurgence, leveraging our local expertise and proprietary data to help our clients stay ahead of the market.
Where are Melbourne's Top 3 Performing Suburbs?
As Melbourne’s property market accelerates, identifying high-growth suburbs is crucial for making smart investments. With access to our exclusive proprietary real estate database, we provide insights that keep our clients a step ahead of the competition.
This database, built from subscription data, trusted sources, and unique inputs, allows us to pinpoint suburbs poised for exceptional growth—even before these areas show up on widely available reports. It’s a tool trusted by our investment advisors to deliver recommendations that outperform the market.
Our Proprietary Advantage
Early Signals: Identify suburbs on the rise before the broader market catches on.
Tailored Recommendations: Data-driven insights matched to your investment goals.
Outperformance: Help our clients secure properties in areas primed for above-average returns.
When Will Melbourne Property Boom?
Interest in Melbourne's property started picking up in late 2024. And as with investors taking the early plunge, they have lots of high quality properties at attractive prices to choose from. Stocks are rapidly dwindling, and investment interests picks up.
Melbourne is at the cusp of a major property boom. And this is supported by on-the-ground activities, more interstates and overseas investors engaging our buyers advocate services, and the data is showing this.
Where are the Top 3 Performing Suburbs in Melbourne?
As Melbourne’s property market starts to thrive, let's take a look at our data depository for answers. At Concierge Buyers Advocates, we maintain our proprietary real estate database, build upon industry subscription data, and a variety of inputs and signals from trusted sources, not available from any other subscription data sources. Our investment advisors trusts this proprietary database to recommend locations before it shows up in other subscription sources. With this set of data, it can give our investor clients recommendations which are a step (or two) ahead of everyone else and lets our investors outperform the market.
So, as we step into 2024, let's dig into our data to identify the top 3 performing suburbs in the Melbourne property market. Here is what the data says:
The Top 3 Performing Suburbs in Melbourne for 2024
1. Footscray
Performance: Prices of 2 bedroom properties in Footscray grew an average of 5.5% in 2024, with rent growing at almost 6.8% annually.
Why It’s Thriving: Footscray has emerged as a top performer suburb in the Melbourne property market, thanks to its excellent connectivity, proximity to the city, and amenities.
Key Highlights: Median house price: $1,000,000 (approx.)
Moderately Strong rental demand due to its mix of apartments and family homes.
Planned infrastructure upgrades, including better public transport and community facilities.
Who Should Invest: Ideal for young professionals, and investors looking for steady rental returns and long-term capital growth.
2. Yarraville
Performance: Prices of 2 bedroom properties in Yarraville grew an average of 4.1% in 2024, with rent growing at almost 9% annually.
Why It’s Thriving: Often referred to as Melbourne’s “next big thing,” Yarraville is experiencing a wave of new developments. It benefits from its proximity to the city, and transport links.
Key Highlights: Median house price: $1,030,000 (approx.)
Growth driven by redevelopment projects.
Appeals to young professionals and home buyers wanting the convenience and proximity to the city.
Who Should Invest: Perfect for investors seeking steady-growth potential and buyers looking for affordable alternatives to inner-city living.
3. Healesville
Performance: Prices of 3 bedroom properties in Healesville grew an average of 2.7% in 2024, with rent growing at almost 5.1% annually.
Why It’s Thriving: Located in Melbourne’s east, Healesville is the gateway to the Marysville, a popular destination for winter snow lover. Healesville combines suburban charm with some urban convenience. It's popularity boomed post lockdown, as working from home became an "in-thing". Many had believed working from home is here to stay, but it is something which our principal advocate Rayson disagree. Having spend 30 years in the corporate world, he knows how the corporate world functions and how bosses like to see their employees. Work is more efficient, and getting things done is easier when everyone's in the office. But we digresses and we'll keep that story for some other days.
Key Highlights: Median house price: $900,000 (approx.)
High demand for family homes and a decent backyard, with residents liking the locations as it is "not a lot further from the city".
Who Should Invest: A great choice for families looking for an affordable "premium-looking lifestyle" and investors seeking short stay tenants.
Why These Three Melbourne Suburbs Stand Out?
In 2024, Footscray, Yarraville, and Healesville have emerged as key players in Melbourne’s evolving property market. These suburbs strike a perfect balance between city proximity, affordability, lifestyle appeal, and growth potential, making them appealing to a wide range of buyers and investors.
Their success reflects Melbourne’s broader transformation, with suburbs offering diverse opportunities for both residential and investment purposes. However, the story doesn’t end there—savvy investors know there’s more beneath the surface.
Why These 3 Melbourne Suburbs Aren’t the Best Performing Yet
While Footscray, Yarraville, and Healesville are gaining traction, they’re not yet Melbourne’s top-performing suburbs. Here’s why:
Numbers Don’t Tell the Whole Story
Property data often reflects averages, which can obscure critical nuances. For example, while inner-city suburbs like Footscray and Yarraville boast impressive overall growth, individual streets and properties can vary widely in value and desirability.
Variations in Location Quality
Within these suburbs, certain areas cater to wealthier residents, while others may feature more social housing, affecting property demand and growth potential. Investors must do thorough due diligence to distinguish between the good and less desirable pockets.
Missed Potential for Higher Returns
Investing in these trending suburbs now usually means paying a premium. Their prices have already risen between 5-6%, meaning you are paying a 5-6% PREMIUM over last year. This leaves less room for significant capital growth. The true gains often lie in identifying suburbs poised for growth BEFORE they become popular.
Suburbs at Different Price Points Perform Differently
When it comes to property investment in Melbourne, one size does not fit all. The best suburb for your investment depends significantly on your budget. Let’s take a closer look at this concept using the three suburbs we discussed earlier: Footscray, Yarraville, and Healesville.
The Risks of Stretching Your Budget
If your budget is $900,000 but you’re targeting Footscray, where the median property price is slightly over $1 million, you may occasionally find properties within your range. At first glance, this might seem like a great deal—but it’s often too good to be true.
Properties priced significantly below the suburb’s median often come with red flags:
Renovation and Repair Needs: Is the property in good condition, or does it require costly upgrades?
Problematic Locations: Is it situated on a busy street, or near undesirable establishments such as illegal drug houses or brothels?
Hidden Risks: Are there social issues or zoning concerns that could impact future growth and tenant appeal?
While entering a higher-priced suburb might seem tempting, compromising on quality can lead to unforeseen expenses and lower long-term returns.
A Smarter Choice for Your Budget
Instead of overstretching in Footscray, a better investment strategy might be to look at Healesville, where the median price aligns more closely with your budget. Healesville offers:
Quality Properties: A wider selection of homes requiring minimal repairs or renovations.
Lower Risk: Fewer social issues and a more stable tenant base.
Better Value: The potential for steady growth without the stress of managing a problematic property.
How We Outperform the Market
At Concierge Buyers Advocates, we combine cutting-edge tools like our proprietary database with deep local knowledge to deliver exceptional results for our clients.
Early Identification of Growth Areas
We specialize in pinpointing suburbs set to boom, giving our clients a significant advantage. By entering these markets ahead of the curve, our investors benefit from higher growth rates.
Street-Level Insights
Beyond suburb-wide data, we analyze individual streets and locations to identify properties in the most desirable pockets, ensuring stronger performance than market averages.
Proven Results
In 2024, the average growth for properties purchased through our services was an impressive 22%—far outpacing the broader Melbourne market. Notably, these properties were not in Footscray, Yarraville, or Healesville. Instead, they were in suburbs on the brink of significant growth, handpicked for their potential.
Where are our Buyers Advocates Buying in 2025?
This is a very good question. The Melbourne property market is very fluid. Given the small number of quality properties for sale at anyone time, the market shifts very quickly. Locations we identify changes within a few months, as good deals are being snapped up.
In short given these suburbs had already experienced 5-6% growth in 2024, unless there are significantly good deals in these locations, these locations will highly likely fall out of our high growth suburbs this year.
We pick locations before they boom, so we can gain more of the growth, and we pick better performing properties in the right streets / locations, so our investors can enjoy better growth, outsmarting the average market.
Why You Should Be Concerned About These Melbourne Suburbs
Property investment, like any other form of investment, requires thorough due diligence. As the saying goes, "past performance is no guarantee of future performance." While Footscray, Yarraville, and Healesville performed well in 2024, a prudent property investor should always ask:
Will these suburbs continue to perform in 2025 and beyond?
Are there other Melbourne suburbs set to deliver better returns in the near future?
What are the data and market trends telling us?
How does this align with your investment goals and timeline?
These are the critical questions that every investor must answer before making a decision.
The Risks of Relying on Past Performance
While 2024 saw significant growth in these suburbs, it’s important to remain cautious. Market dynamics can shift rapidly, influenced by changes in economic conditions, infrastructure developments, or government policies. The performance of these suburbs in the future depends on multiple factors:
Saturation and Competition
As more investors flock to these well-performing areas, property prices may rise, leaving limited room for future capital growth. Remember, properties in these areas had already risen 6%.
Localized Challenges
Not all streets or pockets within these suburbs are equally desirable. Variations in tenant demand, proximity to amenities, and demographic shifts can significantly impact individual property performance.
Emerging Opportunities Elsewhere
Other Melbourne suburbs may be on the brink of a boom, offering better value and higher growth potential for forward-thinking investors.
The Role of Buyers Advocates in Melbourne’s Property Revival
As Melbourne reclaims its position as an investment hotspot, the importance of working with experienced buyers advocates cannot be overstated. With three years of subdued activity, the local property market is now brimming with untapped opportunities—but navigating it requires expertise and local insight.
At Concierge Buyers Advocates, we empower investors to make informed decisions by:
Identifying High-Growth Suburbs: Using a combination of proprietary data and local market insights, we pinpoint areas with the greatest potential for capital growth and rental returns, often before they appear on broader market radar.
Avoiding Overpayment: Our expert negotiators ensure you secure properties at the right price, saving you thousands and maximizing your return on investment.
Minimizing Risks: From street-level analysis to regulatory due diligence, we assess every detail to protect your investment and help you make confident decisions.
Why Now is the Time to Invest in Melbourne Properties
The stars are aligning for Melbourne’s property market. Its affordability, coupled with strong infrastructure, economic stability, and tenant demand, creates a unique window of opportunity for investors. The challenges of the past three years have laid the foundation for a market poised for growth.
If you’ve been considering property investment in Melbourne, now is the time to act. Partnering with a trusted Melbourne buyer’s advocate like Concierge Buyers Advocates can help you capitalize on this resurgence, ensuring you secure the right property in the right location at the right price.
Seize the Opportunity
Melbourne’s property market is ripe for smart, strategic investments. Don’t let this moment pass you by. Contact us today to learn how our expert buyers advocates can help you find the right property, in the right location, at the right price.
Together, we’ll set you up for long-term success in Melbourne’s thriving property market.
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