The dream of building wealth through property investment often leads buyers to wonder: does being closer to the city guarantee better returns? While inner-city locations have historically been prized, the property market is full of opportunities for growth, both in urban hubs and beyond. For buyers navigating this decision, the right guidance—like from a trusted buyers advocate—can make all the difference in uncovering hidden gems that align with your financial goals.
Why do People Buy Inner City Properties?
For many, investing near the city feels like a no-brainer. Properties in areas close to the CBD come with several undeniable advantages:
Convenience and Connectivity: Inner-city properties provide unparalleled access to workplaces, schools, public transport, and amenities like cafes and entertainment. This accessibility keeps demand strong.
Scarcity Drives Value: With limited land available for development in city-fringe areas, properties often appreciate due to their exclusivity. It drives exclusivity, but does this translate to better growth? We'll see very soon.
Economic and Social Activity: Urban hubs remain the heartbeat of commerce and culture, attracting tenants and buyers alike.
In Melbourne, suburbs like Richmond, Fitzroy, and Albert Park have a proven track record of consistent capital growth, with demand staying consistent year after year. We'll see how this compare to the outer suburbs.
Why are Buyers Buying in Suburban and Regional Growth Suburbs?
However, focusing solely on inner-city properties might cause you to miss lucrative opportunities in the outer suburbs or even regional areas. Here’s why:
Affordability: As property prices soar, many buyers are drawn to more affordable options further from the city. Suburbs like Berwick, Wyndham Vale, and Sunbury are experiencing growth as families seek value for money.
Lifestyle Shifts: With remote work and a focus on wellness, larger homes with outdoor spaces in leafy suburbs have become increasingly popular.
Infrastructure Booms: Government investments in transport, schools, and shopping centres drive growth in areas once considered too far from the CBD.
Suburbans suburbs like Ringwood and Cranbourne in Melbourne are excellent examples where growth has skyrocketed thanks to their balance of affordability and connectivity.
Performance of Inner City Properties VS Outer Suburb Properties
Now, let's put our logical reasoning aside and let's look at what the data is telling us over the last 10 years.
We analysed the price growth of houses (not apartments or units) over the 10 years and compared them to their distance from the capital city, and here is what the data shows.
Over the last 10 years, inner city properties have performed the worst. While prices of properties in most areas have experienced about 100% growth (ie, the price doubled) inner city properties have underperformed, and have only experienced approximately 80% growth.
This result may be shocking to many, and is likely to have conclusively dis-proved the "inner city properties appreciate faster" myth. But could there be more to this data. To comprehensively understand what is happening, we need to investigate further.
Over the next few weeks, we will dissect the data further to investigate if these numbers vary across the different states and territories in Australia. We will also investigate if the growth correlates to any other factors, such as socioeconomic profile of the area. We will also explore if recent hotspots, such as Western Australia and Queensland are worth your considerations, and tell you what you need to know before you invest.
Subscribe and stay tuned for our deep dive into the Australian housing market data.
We will also disclose the suburbs, locations and property types which had performed the best in the last 10 years.
Why Both Inner-city and Suburban Properties Have Potential for Property Investors
The truth is, no single rule applies to all properties. Whether you’re considering an inner-city apartment or a family home in the outer suburbs, strategic property investment boils down to understanding the market and seizing the right opportunity.
Inner-city Properties: Steady long-term growth, high rental demand, and strong market resilience.
Outer Suburbs and Regional Areas: Faster short-term gains, higher rental yields, and opportunities for development.
With the right insights, you can unlock the secret of the Australian property market and focus on the real growth areas.
The Role of a Buyers Advocate in Your Property Journey
Navigating the complexities of the property market—especially in Melbourne—requires more than luck. A professional buyers advocate brings expertise, research, and negotiation power to ensure you’re buying the right property at the right price. Here’s how a buyers advocate transforms your investment experience:
Market Expertise: Understand the best growth suburbs through data-driven insights.
Stress-Free Buying: Save time and avoid the emotional pitfalls of overpaying or buying the wrong property.
Tailored Strategies: Whether you’re after a city-fringe gem or an emerging suburb, a buyers advocate crafts a plan tailored to your goals.
At Concierge Buyers Advocates, we treat every property purchase as if it were our own. With a deep understanding of Melbourne’s dynamic property market, we help buyers find opportunities others miss.
Inspiration for Property Buyers
Your property investment journey doesn’t have to be overwhelming. Every suburb has a story, and every purchase is an opportunity to secure your financial future. The key is knowing where to look and having the right team by your side.
Let us help you uncover Melbourne’s next high-growth locations—whether it’s a stylish apartment near the city or a spacious family home in a booming suburb. With the right strategy and the support of a dedicated buyers advocate, you can turn your property dreams into a reality.
Contact Concierge Buyers Advocates today and take the first step toward a smarter investment future. Together, we’ll find the right property at the right price, and set you on a path to long-term success.
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