Melbourne is the fastest-growing city in Australia, and it's simple to understand why. With a strong economy, world-class infrastructure, robust job market and endless opportunities for sports fans – it’s no surprise that so many people are choosing Melbourne as their new home.

For those considering investing in Melbourne for the first time or planning to expand their portfolios interstate, our team of experts share five reasons why Melbourne is not only a great place to live, but also a fantastic investment destination.

1. Worldwide Reputation

Melbourne is one of the most liveable cities in the world. Until 2017, Melbourne was crowned as the world’s most liveable city for seven consecutive years by the Global Liveability Ranking, produced by Economist Intelligence Unit. The unrivalled reputation as a tourist destination is a consequence of a cohesive and stable society, a strong healthcare system, universities that are listed among the best in the world and modern infrastructure, which makes Melbourne a magnificent city that attracts tourists and talents from within and outside Australia.

With hosting rights to the Melbourne Cup, a Grand Slam tennis tournament and a Formula One Grand Prix, Melbourne is also known as the Sports Capital of the World. Impressive stadiums and a packed year-round calendar of great sporting events bring millions of sports fans to this incredible destination.

2. Population Growth Forecast

Melbourne ranks as the fastest-growing state capital in Australia, with a population growth rate above 2%. More than 80,000 people were added to Melbourne’s population in the 2019/20 financial year, while Sydney added 57,000 in the same period. Historically, 65% of the annual growth is due to overseas migration driven by work and education purposes.

In 2020, Melbourne’s population crossed 5.16 million. According to the Australian Government forecast, “Melbourne is projected to overtake Sydney to become Australia’s largest city in 2026–⁠27, with a population of 6.2 million by 2030–⁠31, compared to 6.0 million in Sydney.”

3. Cost of Living

Melbourne and Sydney are similar in terms of population and job market. However, when it comes to cost of living, Melbourne is much more affordable than Sydney. According to Numbeo, the world’s largest cost of living database, the general cost of living (excluding rental) in Melbourne is almost 5% lower than Sydney. When rents are considered into this equation, Melbourne is almost 15% cheaper than Sydney. The combination of a strong job market and a more affordable lifestyle is one of the reasons that underline the high demand for rental properties in Melbourne.

4. Lower price point for well-located and high-quality properties

If you feel that Sydney housing prices have gone out of reach, you are not alone.

We can still find good investment options in Melbourne within 25-30km of the CBD with price points starting at $500,000. These could be house and land packages, townhouses or apartments.

Such options may be much harder to find in Sydney. High-quality investment opportunities in well-developed suburbs offer better rental yields, which is crucial for those who are looking for a sustainable property portfolio.

5. Robust Job Market & Infrastructure

Victoria has a robust job market of almost 3.5 million workers, the second biggest job market in Australia, with great opportunities for skilled employees in sectors such as healthcare, education and professional services. The growth in job opportunities has been attracting migrant workforce consistently over decades.

Infrastructure-wise, the city has invested massively in major projects to improve mobility and connect the community. City shaping infrastructure projects like Suburban Rail Loop, Geelong Fast Rail, Murray Basin Rail Project, Dandenong Corridor, and the construction of 100 new trams are on the way to deliver a modern and efficient transport network to support the population growth for years to come.

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The Melbourne property market has been booming for the past four decades and is predicted to keep up its strong performance in the upcoming years.

With an ever-growing population that will soon exceed Sydney's, affordable lifestyle, a strong job market, plenty of sporting events that attract millions every year, this city has much to offer for those looking to purchase real estate in Australia.

With that said, it is important to clarify each suburb has its own peculiarities. If you are interested in learning more about how to select the right areas to start or accelerate your property portfolio, our team can help.

We are a team of experienced investors that specialise in tailored strategies to build wealth through property. Book your complimentary Wealth Consultation today and see how we can help you achieve your goals!