With interest rates down after many years and talk of investors re-entering the market, we thought we'd do a quick suburb profile review for 3 interesting and somewhat affordable suburbs in Melbourne that have come on the radar recently.
These suburbs are Tarneit, Clyde North, and Melton. We will take a look at 6 key factors - suburb capital growth, rental yield, suburb demographics, vacancy rates, days on market, and vendor discount rate. We will also make some brief commentary on each suburb for context. We will focus on free-standing houses.
Tarneit
* Current Median Price: $660,000
* Rental Yield: 4.18%
* Demographics: 56,000 population, young families with children
* Vacancy Rate: 4.81%
* Days on Market: 161 days
* Vendor Discount Rate: 1.02%
* Comments - fairly affordable, growing area with young families, decent rental yield. Appears to have solid prospects if investor is willing hold there long term. Relatively high vacancy rates and a lot of supply means property may not always be 100% occupied.
Clyde North
* Current Median Price: $725,000
* Rental Yield: 4.4%
* Demographics: 32,000 population, young families with children
* Vacancy Rate: 3.81%
* Days on Market: 101 days
* Vendor Discount Rate: -2.71%
* Comments - Prices seem to be on an upward trajectory as indicated by the vendor discount rate which show properties selling at premium prices, reasonable rental yields. Vacancy rates indicate that there is rental supply. Solid growth prospects are likely for investors willing to hold long term.
Melton
* Current Median Price: $472,750
* Rental Yield: 4.03%
* Demographics: 7,962 population, mainly couples, or families with children
* Vacancy Rate: 2.21%
* Days on Market: 123 days
* Vendor Discount Rate: -3.79%
* Comments - Prices are showing upward trajectory as shown by the vendor discount rate which show high sale prices. Fairly tight vacancy rates is good for landlords. Significant infrastructure plans for the area means prospects are improving. Rental yields are fair.
Our pick based on above would be Melton according to the price bracket and potential for capital growth.
Want specific suburbs profiled in one of our future posts? Write to us at support@propertydirector.com.au and let us know.
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