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APARTMENTS VIC Ringwood The Selection  | gproperty

The Selection

VIC > Ringwood

From $560,000

Superior in living environments and location, The Selection delivers the finest attributes of modern living at one address. Design delivers the spacious, light-filled and luxury elements of Melbourne’s exclusive inner city homes to redefine modern apartment living in Ringwood....

Melbourne's top suburbs to invest in

29th July 2014

Written by Rebecca Garrod

Inner-ring northern suburbs are among this year’s standouts if looking for long-term investment apartments.

Data from the Real Estate Institute of Victoria shows unit median prices rising stronger within 5km north of the CBD than 5km to its southeast.

Brunswick units rose 2.1 per cent to $495,000 and North Melbourne a whopping 8.3 per cent to $515,000, if comparing the period January 1-March 31, 2014 to the three months ending May 2014.

Meanwhile South Yarra, 4km from the city centre, recorded a median unit price rise of only 0.8 per cent to $545,000.

REIV ceo Enzo Raimondo says it’s now more expensive to buy in Fitzroy than in traditionally more expensive southern suburbs like Prahran.

“The inner north has drawn enormous buyer interest this year, with prices continuing to rise, driven by both investor and owner occupier activity, particularly for apartments,” Mr Raimondo says, adding that apartment rentals rose in May to a median of $420 a week, up about 1 per cent on the previous month.

Other northern suburbs faring well in 2014 include Fitzroy North, which now has a median house price above $1.1 million, and Brunswick East, which has seen a median house price increase of more than 17 per cent in the past 12 months. North Melbourn apartments are also on the up.

“They’ve increased more than eight per cent in the May quarter – driven largely by new build apartments, which generally attract higher sale prices and rentals due to their better quality furnishings, amenities and security,” Mr Raimondo says.

Angie Zigomanis, senior manager residential, BIS Shrapnel says housing supply is the chief reason Melbourne’s inner ring suburbs can render “rewarding” long-term investments.

Investors should note that available data doesn’t include off-the-plan sales of new projects, Mr Zigomanis says.

“While Melbourne gets bigger, the lack of developable land means that the number of new houses remains relatively static,” he says.

“For example, at the 2001 Census, inner Melbourne accounted for around 6.7 per cent of Melbourne’s total housing stock but by 2011, this figure had fallen to 6.1 per cent, suggesting it is becoming accessible to a smaller and smaller share of the total population, which gets reflected in long term price growth.”

Joe Russo, whose company Caydon is now selling Ettaro in Brunswick East, is deeply convinced of the inner north’s capital growth potential.

The 412-apartment development is Russo’s third in the Brunswick area in recent years.

It has already sold 210 apartments to “predominantly mum and dad investors” since its launch in February, he says.

Construction begins in August with completion expected by April 2016.

Shared residents’ facilities will include rooftop gardens and outdoor cinema, a lap pool and a yoga room.

Russo says about 25 per cent of sold apartments will be occupied by their owners, many aged 25-35, who are saying they appreciate the development’s walkable access to north Melbourne’s education, dining and entertainment facilities.

Walkscore, which measures locations’ walkability, rates Brunswick East 90 out of 100.

“It is only 3km from the CBD, has excellent transport infrastructure including Melbourne’s most popular tram running down to St Kilda, and Lygon Street’s thriving restaurant precinct only 300m away,” Russo says.

“You can walk across the road and you are in Carlton North and its properties worth $2 million-$3 million, so the potential for huge capital growth is just massive – I see it as the South Yarra of the inner north in a few years.”

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