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Best 10 Suburbs to invest in Melbourne 2021

When we take a look at investor statistics within the Australian property market throughout the last year, we see the lowest participation rate on record. 

The pandemic affected Melbourne more than any other capital city in Australia in 2020, but what does that mean for investors in 2021?  

With the property market expanding through substantial government stimulus, record low interest rates and increased investment value, it looks to be an opportunistic time for investors who have been sitting on the sidelines.

As a work-from-home movement continues to sweep across the State, together with a desire to avoid returning to the busy city lifestyle, investing in regional areas within a commutable distance from Melbourne CBD have started to gain momentum.

So, when it comes to investing in a property, what are the best value Melbourne suburbs? We’ve curated a list of our top suburbs:

Officer

In Melbourne’s south-east, you will find the peaceful yet ever-expanding Officer. Boasting a median house price of $593,000* and a rental yield of 3.5%, Officer has always been a hotspot for home buyers due to its accessibility to train stations, the Princes Freeway and some of Melbourne’s best schools.

Officer is home to one of Satterley’s most popular master-planned communities, Arcadia. This exciting estate blends its beautiful natural surrounds with urban living. A future town centre, two nearby train stations and three brand new schools at its doorstep make Arcadia an excellent option with competitive investment value.

A developing town in south-east Melbourne, Officer has a peaceful balance of natural surrounds with urban conveniences.

Melton

Staying west but heading slightly north, Melton is making an upward move in the Melbourne property market. The suburb holds a median house price of $390,000* and boasts Victoria’s fastest-growing economy over the past 10 years. This has seen Melton become increasingly popular with homebuyers in recent times.

Just 45kms from the city and offering connectivity through Melbourne’s key metropolitan and interstate road networks, including the Tullamarine, Calder, Western, Princes and Hume Freeways. In addition to a predicted population growth of 40% in 40 years, it’s easy to see why Melton holds significant long term value.

Mickleham

The fast-growing and extremely popular suburb of Mickleham is always a top consideration for property investors and homeowners alike. An affordable and ideal location for growing families, the suburb offers a median house price of $578,000* and rental returns averaging around 3.77%, meaning great opportunity for investors.

Mickleham is approximately 10 minutes away from a hub of amenities in nearby Craigieburn such as shopping centres, sports facilities, schools, and dining options. The population in Mickleham was estimated to be just over 3000 in 2016 and is expected to reach over 40,000 by 2026, experiencing an average annual growth rate of 28.92%.

Mickleham is home to Satterley’s Botanical estate, located 29km from the CBD, easily accessible by car via the Tullamarine Freeway or by train from the nearby Donnybrook Railway Station.

Botanical is one of Satterly's most sought after estates in Victoria.

Box Hill

In terms of capital gains, one of the most recent and best-performing suburbs within the Australian property market is Box Hill. Situated 20kms from the CBD, its connection to innovative health, education and job opportunities could be the reason for its recent peak in investment value.

A firmly established growth area in Melbourne’s eastern suburbs, Box Hill saw a capital gain of 20.84% over 2020*, making the suburb a high contender in our best suburbs list.

Tarneit

Offering the drawcards of Werribee and the bay on its doorstep, the leafy suburb of Tarneit has seen consistent growth over the years. More recently, Melbourne’s western region is predicted to grow by 12%, confidently sitting above the 10% population growth of metropolitan regions.

The median house price in Tarneit stands at $603,000*, and located only 25kms from Melbourne’s CBD, Tarneit’s growth shows no signs of slowing down. Satterley has proudly delivered one of Tarneit’s most popular communities in Habitat on Davis Creek, which only has a limited number of lots left.

Investors will find an abundence of wide open spaces at Habitat on Davis Creek, making it ideal for young families.

Pakenham East

Pakenham located 54kms south-east of the CBD, has been one of the fastest-growing suburbs in Melbourne over the last 20 years. As a result of this popular suburb being built out, demand is now increasing for the new neighbouring suburb of Pakenham East.

Once built, Pakenham East will feature 7200 affordable new homes and will create 1300 new jobs and generate more than $1 billion for the Victorian economy over the coming years. Purchasers can look forward to a local town centre, three primary schools and a high school, three community centres and 44 hectares of local parks and sporting reserves. but the initial price and choice of land will be optimal for investment value.

As a brand new suburb with great potential, predicted positive rental yields may provide purchasers in Pakenham East fantastic value when considering their next investment property. The fact that multiple high-quality developers have sought out this area in Melbourne is a clear sign that many believe Packenham East is primed for growth. 

Donnybrook

Exit Hume Freeway onto Donnybrook Road, turn right and discover why this is becoming so popular. Donnybrook is a rapidly growing area in Melbourne’s north. Along with neighbouring suburb Woodstock, there are plans in place for five local town centres, five convenience centres, six government schools, four non-government schools and 46 hectares of parkland.

The recent Donnybrook station upgrades improved access, safety and comfort for passengers, demonstrating the need for infrastructure growth in one of Victoria’s fastest-growing communities.

Greenvale

Featuring the Greenvale Reservoir, Greenvale Shopping Centre and a 10-hectare sporting precinct in addition to its close proximity to Melbourne Airport, Greenvale has long been an aspirational suburb in Melbourne’s north. Just 24kms from Melbourne, this well-established and family-orientated suburb continually sees high housing demand.

Satterley’s True North community caters to investors looking for great value in Greenvale and the north region of Melbourne. Life in the picturesque estate is rich with city views, making this residential community hard to beat.

Greenvale’s community has established over the past 20 years to become a popular spot for investors and owner-occupiers alike. Artist's impression of Satterley's True North Greenvale community.

Glen Waverley

Located 19km south-east of the CBD, Glen Waverley is residential in nature with substantial areas of commercial centred around the Glen Waverley Railway Station. A little closer to the City and offering access to The Glen Shopping Centre, Glen Waverley Golf Course and Central Reserve, it’s easy to see why landlords have no trouble finding tenants in a suburb where the median house price is just over $1.3million*.

The biggest drawcard for Glen Waverly is its education opportunities, with Glen Waverly Secondary College acknowledged as one of the best public schools in Victoria. The school alone has been known to drive demand in this very popular suburb, keeping it on the radar for families and investors within the Australian property market for many years.

Geelong

A booming but relaxed community, Geelong is one of Australia’s fastest-growing regional cities and offers attractive lifestyle options just one hour from Melbourne. Known as the gateway to the world-renowned coastline of south-west Victoria via the Great Ocean Road, the coastal city of Geelong has always been a consideration for investors within Melbourne’s property market.

Geelong has a median house price of $788,000* with fantastic transport connections to Melbourne and a comprehensive range of infrastructure assets not usually found in a regional area such as sea, rail, road and air. An example of this is the Geelong Port which will be the new home of the Spirit of Tasmania by the end of 2022. Assets like this will continue to strengthen Geelong's appeal to varying business sectors, ensuring Geelong provides excellent options and value for money for investors in the short and long term.

*Statistics, data and prices have been sourced via suburb profiles on www.reiv.com.au

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