Singaporeans have long sought opportunities to diversify their investment portfolios beyond local shores, and Australia, with its robust economy, stable property market, and appealing lifestyle, remains an attractive destination. Among Australian cities, Melbourne stands out as a prime investment hotspot due to its dynamic property market, relatively low property prices, world-class amenities, and growing population.
However, investing in overseas properties is not without challenges. Without local knowledge and proper guidance, investors risk making costly mistakes. Here’s why Singaporeans investing in Melbourne should be on your radar—and how it compares to Singapore’s property market.
Melbourne vs. Singapore: A Property Investment Comparison
Aspect | Melbourne | Singapore |
Property Prices | Relatively more affordable for larger properties: S$600k for a 300sqm freehold landed house | High property prices due to land scarcity: S$2 mil for a 200sqm 99-year landed house |
Rental Yields | Higher rental yields (4%–6%) in some suburbs | Low rental yields (3%–4%) |
Capital Gains Potential | Strong growth potential, especially in emerging suburbs. Average growth of 7% annually, ie, house prices typically double every 7-10 years. | Limited potential due to mature market. 4% growth (source: HDB) |
Government Restrictions | Lower stamp duties for overseas investors compared to Singapore | Additional Buyer’s Stamp Duty (ABSD) for foreigners |
Market Accessibility | Easier entry with diverse property and mortgage options | Competitive market with high entry barriers |
Tenant Demand | Strong demand, particularly in high-growth suburbs | Stable but competitive |
Regulatory Environment | Open market with fewer restrictions for foreign buyers | Strict regulations on foreign ownership |
Key Takeaway:
While Singapore is a stable market, its high entry costs and lower rental yields can limit returns. Investing in Melbourne properties offers a balance of affordability, strong rental demand, and significant capital growth potential, making it an attractive alternative for Singaporean property investors.
What can Singaporeans Buy in Melbourne?
Now, let's have a look at what types of properties Singaporeans can buy in Melbourne. If anyone says you can only buy apartments and townhouses (aka terrace house in Singaporean speak), you've been conned. That person is likely someone who is or associated with a sales agent selling the tons of apartments and townhouses which they cannot sell in Australia.
Singapore investors can buy a lot more than apartments and townhouses in Melbourne. Singaporean investors can buy standalone houses (aka bungalow in Singaporean speak), the real bungalows / mansions, waterfront house, apartments, penthouses, etc. Pretty much any type of residential properties. There are however, some restrictions, and if you know where to find the good ones, with huge growth and yield potentials, you can reap mega rewards from your investment in Australia/Melbourne.
Investing in Properties in Melbourne vs. Singapore
Let's look at some examples of what investing in Melbourne looks like, compared to investing in Singapore
1. City Centre Condo
Singapore: A 2-bedroom 99-year leasehold apartment in Orchard Road costs approximately SGD 3 million. Rental yields average 2.5%–3%.
Melbourne: A 2-bedroom freehold apartment in the CBD (Central Business District) costs around AUD 800,000 (SGD 700,000). Rental yields are 4%–5%, with strong demand from students and professionals.
2. Suburban Home
Singapore: A freehold landed property with 200 sqm land in Bukit Timah costs upwards of SGD 8 million, making it inaccessible to most investors.
Melbourne: A 4-bedroom freehold house with 700-800 sqm land in a high-growth suburb like Ringwood or Box Hill costs AUD 1.5 million (SGD 1.3 million), offering 3 times larger land, space and a better chance for capital appreciation. Or if you look at other suburbs, a 4 bedroom freehold house with 300sqm land can be bought for around AUD 800,000 (SGD 700,000).
3. Investment Units for Rent
Singapore: A compact studio unit in Toa Payoh costs around SGD 1,000,000 and yields about 3-4%.
Melbourne: A 1-bedroom unit in an inner-city suburb like Brunswick or Richmond costs AUD 500,000 (SGD 430,000), with rental yields of 4.5%–6%.
Why Singaporeans Are Investing in Melbourne Properties
As shown above, many Singaporeans realised they can make their money stretch further when they invest in Melbourne. Take this example, with a budget of SGD$3million, they can buy up to three or more 2 bedroom freehold apartments in Melbourne CBD, instead of just one 2 bedroom 99-year leasehold apartment in Orchard Road. Talk about not putting the eggs in one basket? They get 3 streams of income with investment properties in Melbourne, vs 1 in Singapore.
Now, let's see why many Singaporeans are investing in major Australian cities like Melbourne and Sydney.
Strong Property Market Growth
Melbourne’s thriving real estate market is driven by population growth, infrastructure development, and a diverse economy. For Singaporean investors looking to invest in Melbourne, this means steady capital appreciation and secure investments.
Higher Rental Yields
Compared to Singapore, Melbourne properties offer higher rental yields in many suburbs, providing attractive returns for investors seeking steady rental income.
Favorable Exchange Rates
The strength of the Singapore dollar against the Australian dollar provides excellent purchasing power for Singaporeans investing in Melbourne real estate.
Lifestyle Appeal
Ranked as one of the most liveable cities globally, Melbourne’s quality of life attracts tenants, ensuring high rental demand and making it a reliable long-term investment.
All-time Low SGD-AUD Exchange Rate
With the Australian dollar at an all -time low. investment properties here in Melbourne has suddenly become a lot more affordable. But, as we all know, exchange rate are cyclical. The AUD is overdue for a boom. Get in now and enjoy the benefit of rising AUD.
Risks of Buying Properties Through Local Sales Agents in Singapore
Many Singaporeans choose to work with local property sales agents who market Australian properties. While this approach may seem convenient, it comes with significant risks:
Lack of Independent Representation
Local agents often represent the developers or sellers rather than the buyer’s interests. Their primary goal is to sell the property at the highest possible price, which may not align with your investment goals.
Limited Knowledge of Melbourne's Local Market
Local sales agents may lack in-depth understanding of Melbourne’s property market, including high-growth suburbs, market trends, and upcoming risks. You might end up investing in a property in an oversaturated area with limited growth potential.
Overpriced Developments
Properties marketed through overseas sales agents are often new developments with high developer margins. As a result, you may pay a premium price compared to established properties in better-performing locations.
Inadequate Due Diligence
Overseas agents may not provide detailed insights on critical aspects like property quality, legal compliance, and rental demand, increasing the risk of purchasing a subpar investment.
Circumventing These Risks by Working with a Local
Investing from Singapore used to be "scary" thing. Or, at least, this is what the local sales agencies want you to know, just so you are buying Australian properties through them. But the reality is, it is not that scary.
How then do you invest in Melbourne Properties from Singapore?
How do you find where the good investment properties are in Melbourne?
Unlike Singapore, the Australian and Melbourne property market is a much more matured real estate market. In the Melbourne real estate market, there are unique specialist real estate advisors known as Buyers Advocates. Buyers Advocates are licenced, policed-checked real estate advisors and investment consultants with a difference.
Who are Buyers Advocates?
Buyers Advocates are real estate agents with years of experience in real estate. Many are well versed in the local real estate market and are skilled in property selection, inspection, and negotiation. However, unlike sales agent who look after the interests of sellers and developers, Buyers Advocates look after the interests of buyers and property investors. Their role is to help buyers find the right property at the right location, and buy it at the right price.
Instead of buying from their local sales offices in Singapore, savvy investors from Singapore are turning the odds against these sales agents by engaging local buyers advocates in Australia to help them avoid the pitfalls of "buying from the sales guy". Melbourne based Concierge Buyers Advocates was founded by a migrant from Singapore and we only represent buyers interests exclusively. Here’s how we can help property investors from Singapore:
Unbiased Advice
Unlike local sales agents who prioritize the seller, we work solely for you, the buyer. Our goal is to secure the best property at the right price based on your investment needs.
Comprehensive Market Knowledge
As Melbourne-based property investment experts, our fully licensed and police-checked advisors bring an unmatched understanding of the local market. We specialize in helping Singaporean investors identify locations, suburbs and property types with strong growth potential, high rental demand, and long-term value.
Our recommendations are grounded in facts and enhanced by cutting-edge AI data analytics, delivering insights beyond surface-level trends. Every recommendation from the analytics is validated through on-the-ground inspections and local expertise—something your sales agents in Singapore simply can't offer. Many of them have never even set foot in Australia, let alone gained the deep market knowledge needed to guide your investment confidently.
Tailored Stress-free Services for Overseas Buyers
We offer virtual consultations, video property tours, and end-to-end support to ensure a smooth investment process for Singaporean property buyers investing in Melbourne. From property search and inspections to negotiations and due diligence, we handle everything, so you can focus on your career and goals.
Access to a Wider Range of Properties
We provide access to off-market and established properties that are not marketed through Singapore sales agents, giving you better options beyond developer-marketed projects. Freehold bungalows, houses, townhouses, terrace houses, apartments, penthouse, etc. Yes, freehold. Own a piece of Australia forever.
Independent Representation
Unlike selling agents, we represent your interests as a buyer, ensuring you get the best property at the best location, and at the best price. The real deal. We don't recommend properties to you, just because we had to sell them. We've nothing to sell.
Mitigate Risks with Thorough Due Diligence
We conduct detailed inspections, evaluate market trends, and perform financial analysis to ensure you invest in a property that aligns with your goals. Our recommendations are backed by AI data analytics, updated every week.
Negotiation Expertise
Our team ensures you never overpay by negotiating directly with sellers or their agents, leveraging our local market insights to secure the best deal. On average, our buyers save between $30k to $500k, in one instance.
Singapore or Melbourne? Your Investment Decision Simplified
While Singapore offers stability, its high entry costs and lower yields limit growth opportunities. For Singaporeans investing in Melbourne, Melbourne presents a chance to achieve higher rental yields, capital appreciation, and affordable entry points.
At Concierge Buyers Advocates, we’re committed to making your Melbourne property investment a success. Let us help you navigate the Melbourne property market with ease, so you can invest with confidence.
Contact us today to start your Melbourne property investment journey.
How to Contact Your Personal Melbourne Investment Advisor
Visit our website or call us to discuss your investment goals and learn how we can help you secure the perfect Melbourne property.
Comments