Who’s Truly Investing in Property Down-under?

With the surge in Singapore property prices in the recent years, we have seen more Singapore property investors turn to investment properties in Australia and particularly, Melbourne.

This got us thinking what would be the typical profile of a real estate investor who’s looking to buy in Melbourne? And what do they see in Australia or Melbourne?

 “The first thing that attracted me about Australia is the stable property market.”

Risk-adverse investors turn to Australia when it comes to investing. Having been named one of the Top 5 countries with the most stable property market, Australian property prices do not experience the same fluctuation that may be observed in other international markets.

In big metropolitan cities like Melbourne, property prices have also continued to rise year-on-year with it recording a double-digit growth of ~10% in 2017. With the robust job growth and migration to the Victorian capital, analysts are expecting Melbourne to continue to experience strong underlying demand for property.

Preparing for my children’s education.”

An equally popular reason.

Melbourne is home to some of the top universities in the world, including University of Melbourne, Monash University, RMIT University and Victoria University.

In terms of secondary education, Melbourne is home to several prestigious high schools including Melbourne High School, Melbourne Grammar School, Mac Robertson Girls High School, Melbourne Girls Grammar and more.

Many of the property investors in Singapore claim that they choose to invest in Australia because they previously studied there or are planning for their kid’s education there.

That comes as no surprise given that Melbourne was also rated as one of the top ten safest cities in the world according to Safe Cities Index 2017.

 “Buying to rent it out.”

Savvy investors want to invest in a property that delivers both solid capital growth and stable rental returns.

Just last year, Melbourne’s vacancy rate dropped to a 10-year low, resulting in strong demand and even stronger rental rates. According to The REIV, as of February this year, vacancy rate in Melbourne was recorded as 2.1%, which means that close to 98% of all residential properties are occupied, of which more than half are attributed to renters.

Melbourne is home to many headquarters including ANZ, National Australia Bank, Exxon Mobil and Toyota and rental demand among students, local professionals, and foreign expatriates have remained strong in Melbourne in particular in the areas surrounding CBD and top schools.


Which part of Melbourne?

When it comes to investment, consider areas such as South Yarra and Toorak in Melbourne, which has traditionally been home to many of Melbourne’s most affluent families.

Seen as Melbourne’s most fashionable suburb, it homes some of Melbourne’s top schools, best retail brands, entertainment, and parks. This includes Chapel Street, an iconic retail, dining and entertainment strip, Prahran’s fresh produce and a collection of art galleries and parklands surrounding Domain precinct. There is never nothing to do in South Yarra and in the past few years, we have seen strong rental demand from both students and professionals who choose South Yarra for its lifestyle element and close proximity to the CBD and major train lines.

For others, it is about the proximity to top schools such as Melbourne Grammar School. All these factors have contributed to the higher capital gains and rental demand experienced in South Yarra.

 “Finding my retirement home”

Some investors are also turning to Melbourne, and its blue-chip suburbs such as South Yarra for future retirement purposes. Considered one of Melbourne’s oldest suburbs, it’s easy to see why it is consistently voted as Melbourne’s most liveable suburb even with international house-hunters.

Spending one’s later years in South Yarra can be vibrant yet relaxing. From South Yarra, take an easy walk to some of Melbourne’s finest spots, the Yarra River, the Royal Botanical Gardens, Fawkner Park, the CBD, Southbank and more.

Is it still possible to invest in blue-chip suburbs like South Yarra?

There is a perception that South Yarra is out of reach for all but the wealthiest property investors. However, that is not the case for an upcoming landmark development, Yarra One. Located on Claremont Street, this development is a short 5 mins walk from South Yarra Station.


Developed by leading real estate developer EcoWorld and crafted by the visionary Fender Katsalidis Architects, Yarra One is easily seen as Melbourne’s most refined address today with all the distinctive hallmarks of an EcoWorld development, a prime location, superb connectivity to the surrounding area and access to the wide-ranging amenities nearby.

Exploring the space gives the same sense of luxury that one might find living at a five-star hotel but at a starting price of S$XXX,XXX, many are now seeing it as a unique opportunity to live and own a landmark property in Melbourne’s most prestigious locale and suburb that attracts both sophisticated investors and tenants.

With Yarra One, we see many of the same elements you can find in other high-end hotels including communal dining rooms, concierge service, private wine cellars, a resident’s library, outdoor spas and a rooftop terrace with uninterrupted city skyline views that is undeniably the “gem” of the development.

For those based in Singapore, EcoWorld will be featuring this project on 19 & 20 May 2018. RSVP below for those interested in Previewing this landmark development in Melbourne.

Keep me posted

Let DREA keep me updated on news, developments and insights about the Singapore Property market.