Melbourne Rental Market Insights: Best Areas for Investors

Investing in Melbourne property can be a smart way to build wealth, but only if you pick the right suburb. Rental demand, vacancy rates, and potential capital growth all matter. Here’s our 2025 breakdown of Melbourne suburbs that offer strong rental returns and investor appeal.

1. Inner Melbourne:

• Suburbs: Fitzroy, Collingwood, Southbank

• Rental yield: Moderate, high demand for apartments

• Why invest: Perfect for young professionals and short-term renters

2. Middle Ring Suburbs:

• Suburbs: Preston, Glen Iris, Hawthorn

• Rental yield: Balanced, strong long-term growth potential

• Why invest: Families and professionals want larger homes and good schools

3. Outer Suburbs:

• Suburbs: Craigieburn, Werribee, Pakenham

• Rental yield: High for the price, strong rental demand

• Why invest: Affordable properties, new developments, growing population

Tips for Property Investors:

• Look at the suburb’s historical capital growth

• Check rental demand and vacancy rates

• Consider the property type that appeals to tenants (units vs. houses)

Melbourne’s rental market has options for every investor, whether you want inner-city excitement or outer-suburb growth. Knowing where demand is strong helps you make smarter, long-term decisions. To discuss your options contact MJ at MJB Real Estate.

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