The suburbs of Melbourne with the most property investors


A CoreLogic report has revealed the Melbourne suburbs with the highest ratio of property investors.

Across the whole country there are around 2.6 million homes that are owned by property investors.

Predictably, investor numbers were often highest around areas with strong rental performance, driven by the usual factors of being close to the city, transport, hospitals and quality educational facilities.

An interesting find from the report showed that if there’s an apartment within 10 kilometres of Melbourne’s CBD, it has at least a 50 per cent chance of being owned by an investor.

CoreLogic head of research Tim Lawless discussed the report’s findings with Domain.

“While investors have generally derived strong capital gains from their properties in recent years, growth in rental income has been comparatively soft,” he said.

“Investment is currently ensuring that there is ample rental accommodation and subsequently easing rental price pressures.”

Mr Lawless said many suburbs with a high percentage of property investors were renter’s markets rather than landlord’s markets.

BIS Shrapnel’s Angie Zigomanis said one downside to having a high proportion of investors in one area was that it increased that area’s volatility.

“Investment properties are a discretionary purchase to some extent, and if times got harder they’re the properties that would be first to go,” he told Domain.

“It’s a risky proposition if you are forced to sell at the wrong time.”

It’s also worth noting that investor proportionality can change over time, and just because a suburb has a lot of investors now, it doesn’t mean it will always be the case as suburbs and areas often undergo significant market change.




Suburb                       Investor-owned

Elwood                        88.2%

Brunswick West           86.1%

Carlton                        83.4%

Melbourne                   83.4%

Hawthorn                    81.9%

Thornbury                   78.6%

St Kilda East                77.5%

Balaclava                     77.2%

Clayton                        76.9%

Armadale                     76.7%



Suburb                        Investor-owned

Laverton Raaf                49.8%

Carlton North                46.6%

North Melbourne           45.5%

Carlton                          41.7%

South Melbourne           40.6%

Richmond                      39.6%

Officer                           38.2%

Collingwood                   37.8%

South Yarra                    37.5%

Port Melbourne              37%                                                                                               


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