Favourable Returns for Investors in Melbourne’s Northern Suburbs

Investors in Melbourne's northern suburbs are enjoying impressive returns thanks to a combination of higher yields, fast turnarounds, and consistent demand. The region, known for its relatively affordable properties, has become a sought-after area for both investors and tenants, driven by the development of new residential estates, shopping centres, hospitals, and top-notch schools. Moreover, the area's easy access to major arterials to the city and the airport further adds to its appeal.

Strong Rental Yields and Increased Demand

Rental returns have been rising steadily, with a standard three-bedroom house now generating between $520-$550 per week. For larger, newer four-bedroom homes, investors are seeing returns of $650-$700 per week. This surge in rental income is largely due to the high demand in the region, with properties attracting an average of 4-7 groups per inspection and 6-10 applications. As a result, these properties are being leased quickly, often within a short time frame.

In Epping, where rental properties are highly sought after and stock levels remain low, homes are being leased in as little as one week. Neighboring Wollert, which has a higher supply of new builds, also sees properties snapped up within 10-14 days.

Stable Market with Positive Outlook

As of July, the median house price in Epping was $669,000, while units were priced at $455,000, according to realestate.com.au. For rental properties, houses in Epping are leasing for $500 per week, offering an annual yield of 4.1%, while units are bringing in $440 per week with a yield of 5%.

The region’s rental market is tight, with the Epping office reporting a low vacancy rate of just 1-1.5%. The limited supply of rental homes has intensified competition among renters, further driving up prices. Families looking for more space are eager to secure four-bedroom houses, while young couples and smaller families, often first-time renters, are vying for affordable two-bedroom townhouses.

An Attractive Investment Opportunity

Newer homes in the area, especially those in modern, move-in-ready pockets, are leasing quickly. On the other hand, older properties requiring more maintenance tend to take slightly longer to rent out. While rental prices have risen in recent months, the market has now stabilised, with renewed confidence in the region’s future prospects.

For investors looking for a stable, high-return market, Melbourne’s northern suburbs remain a strong contender, with the combination of affordable property prices, increasing rental yields, and a strong demand making it an attractive choice for both seasoned and new investors.