In what will be a major fillip for several global investors, the Melbourne real estate market has been acknowledged as the top market for investing in realty by a major report. In the entire Asia-Pacific region, Melbourne is reportedly the city with the best real estate investment prospects and this should help it draw more foreign investors as per reports. Melbourne has a thriving office market and this is also boosting its residential real estate sector in turn.
Rentals in both Sydney and Melbourne are expected to increase further considering the rapidly reducing vacancies across both commercial and residential segments. Rental growth has been excellent for 2018 across both these cities with yields matching up to global standards at almost 4.5-5.5% for office, retail and industrial spaces. They have also been pretty decent in the residential space which will spur more investors to pump in funds for snapping up prime properties in Melbourne or even in Sydney.
Market prices are also at more reasonable levels in Melbourne currently and this is another factor that may attract buyers towards its housing markets. Value addition is the biggest aim for most investors in the Asia-Pacific region and particularly in Australia and this is where Melbourne scores highly on several counts. The number of assets that can be bought are considerably lower in Melbourne and even Sydney as compared to Japan and hence there is high demand from well-heeled global investors looking for steady future growth and returns. Melbourne’s real estate market is more attractive for end-users as well since prices are steadier in several micro markets. Overall, the realty sector here, particularly the luxury real estate sector, is poised to make a strong comeback with growing foreign buyer interest as per industry experts.