Property investors across Victoria are increasingly asking one question: Should I look beyond Melbourne for better rental returns?
Greater Melbourne: Capital Growth and Consistency
Melbourne remains a strong long-term performer. Suburbs like Box Hill, Clayton, and Footscray continue to attract strong rental demand due to proximity to jobs, education, and transport. While yields may be slightly lower, capital growth is typically more consistent.
Regional Victoria: Higher Yields, Lower Entry Prices
Regional centres like Geelong, Ballarat, and Bendigo offer more affordable entry points with yields often 5–6%. However, vacancy rates and tenant demand can fluctuate based on local employment and infrastructure investment.
What to Consider Before Investing
- Tenant Stability: Metropolitan leases often last longer, while regional areas may experience seasonal shifts.
- Maintenance Costs: Older regional homes can require more upkeep.
- Property Type: Student housing and apartments perform better near universities; houses and warehouses perform well in growing suburbs.
Our Take
For balanced portfolios, combining both Melbourne and regional assets can create stable returns and risk diversity.
If you’d like expert guidance on where to invest next, speak to RENTED Property Management — we manage across both Greater Melbourne and regional Victoria, helping you make confident decisions.
