Buying an investment property in Melbourne?
Buying an investment property is a big commitment, with profitability and returns determined largely by location.
With this in mind, would-be investors looking for real estate in Victoria may be interested to learn which areas boast the most favourable market conditions.
Figures from the Real Estate Institute of Victoria show that Melbourne property owners can expect to receive an average weekly rent of $381, while regional rents stabilised during December to $300.
Vacancy rates are another consideration that prospective buyers should take into account, with this determining demand for rentals in certain locations.
Availability in Melbourne increased slightly in December from 2.2 per cent to 2.3 per cent, with the city's suburbs recording a vacancy rate of 2.9 per cent, while the inner suburbs and Mornington Peninsula boasting a rate of 2.5 per cent.
Demand outweighed supply significantly further away from the city centre, with the outer suburbs recording a vacancy rate of just 1.3 per cent during December.
Vacancy rates eased in regional markets, with Geelong and Ballarat both increase to three per cent from 2.1 per cent and 1.5 per cent respectively.
Bendigo and Wodonga boasted the tightest markets of the state, with both areas recording vacancy rates of 0.8 per cent.