Where are investment Hotspots in Australia?

According to CoreLogic and Oxford Economics Australia, house prices in Perth are set to cross the $1 million mark within the next three years, while Sydney’s median is expected to climb close to $2 million.

From 2024 to 2027, we’ll see many investment hotspots in Australian suburbs in WA, QLD, SA, and NSW . However, Victoria doesn’t seem to have as many hotspots.

This trend in Victoria is largely due to the high land taxes, rental reforms, and anti-investment policies introduced by the Labour government, aimed at offsetting the state’s accumulated COVID-19 debt over the next decade.

These measures have pushed many investors to sell their properties in Victoria and look for investment hotspots in other Australian suburbs.

The effects are quite clear: more than 25% of investors have recently sold their investments in Victoria. Additionally, industry groups like the Property Investment Professionals of Australia (PIPA) and the Property Investors Council of Australia (PICA) have labeled Victoria the worst state for renters and investors.

Despite this, some still believe in Melbourne’s charm. They argue that as the population grows, so will property prices.

Victoria still has significant potential for long-term growth. Melbourne is renowned for its liveability, cultural diversity, and strong education and healthcare systems, which continue to attract both local and international residents.

The state’s commitment to infrastructure development, including major transport projects like the Melbourne Metro Tunnel and North East Link, promises to enhance connectivity and boost property values in the long run.

Moreover, the Melbourne property market has historically shown resilience and the ability to recover from downturns, making it a potentially rewarding investment for those willing to hold properties over a longer period.

But the real questions are when will this happen, by how much, and whether any potential price increase can outweigh the high costs of holding properties in Victoria, especially when rental yields are lower than in other high-performing suburbs.

So, what do you think? Is Victoria “The Place To Be”? Or would you rather invest elsewhere?

Engage a Melbourne buyer’s agent before making any investment decisions. This ensures you thoroughly analyse your situation and select an option that provides the best financial outcome for you and your family, preventing future regrets.