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Sydney investors are seeing Melbourne homes as invisible, pursuing higher yields and cheaper prices, while local buyers are sitting cautiously off the market.
Interstate investors are emerging in Melbourne’s housing market as many local buyers remain cautious after years of tax increases, regulations and price growth.
According to Proptrack, new data shows that Melbourne will hold 943 auctions this week, 6 per cent from the same period last year – another 772 are planned next week.
The most listed suburbs include Reservoir (19 auctions), Glen Waverley (18), Craigieburn (16), Waverley Mount (15), and Malvern East (14).
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But while local activity remains unbalanced, experts say a large percentage of investors’ motivation is now coming from interstates, especially Sydney and Perth, where prices and yields are falling, prompting buyers to seek better value elsewhere.
Ray White Werribee Agent John Camilleri said he recently signed a contract before the payment was cleared.
“We have seen much worse sales in real estate between $570,000 and $580,000, including real estate sold over the phone to interstate buyers,” Mr Camilleri said.
“Investors checked this out and went on with a full itinerary, some of the most detailed itineraries I’ve ever seen.
“Currently, they are swimming on the fire to secure property- they are not bothered.”
Reservoirs, Glen Waverley and Craigieburn led Melbourne’s auction hotspot this week, with hundreds of homes set to land on the hammers throughout the city. Photo: Istock/Ingrid Hendriksen
Camilleri says many people are chasing weekly rent Over $600, “radical drama” is being performed in suburban areas such as Werribee.
Advocate director and buyer agent Madeleine Roberts said the countrymen are now doing math work in Melbourne and found it piled up.
“They are less emotionally attached to the local market, which gives them an advantage,” Ms Roberts said.
Advocacy director Madeleine Roberts said interstate buyers are doing math in Melbourne, and bold moves locals won’t.
She said strong rental yields and Melbourne’s relative affordability were the main drivers of renewed interest compared to Sydney, Brisbane and Perth.
Rebaa President Melinda Jennison said Melbourne is reappearing and it is the best opportunity.
“With the stability rate, the increase in immigration and more stocks entering the market, the city is becoming a major attraction for savvy investors and first-time home buyers,” Ms. Jennisson said.
Melbourne property is re-demand, but it is an allegation led by interstate investors, not local buyers.
Rebaa Victoria State Representative Matt Scafidi said the fiscal year 2024-25 marked a turning point.
“While lacking the explosive growth seen in other states, Victoria remains an opportunity market, especially for buyers with long-term prospects,” Mr Scafidi said.
Anthony Webb, director of Belle Property Hockingstuart Victoria, said confidence among local investors is still lagging behind.
“Victorian investors are still exhausted,” Weber said.
“Buyers from NSW and Western Australia believe Melbourne has reached its lowest point and it looks like a long-term.”
Mr Webber said many locals are still “shooting” after several years of land taxes, regulatory changes and rising cost of holdings, but that sentiment may quickly shift if interest rates are cut in the second half of 2025.
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