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If you’ve been flipping through Malaysian newspapers, you would have noticed a large number of advertisements on investing in properties in Melbourne, Australia. It’s hard to ignore them when they sometimes take up the whole page. But, is it worth the hype? Is it possible with the weak Ringgit, decline in oil prices and the current political scene in Malaysia? What about the economic and political situations in Australia? This article will look at some of the fundamental questions you might have before making your first investment.

1. What is the economy like in Melbourne, Australia?

Melbourne, as with many parts in Australia, is moving towards a service-based state from a manufacturing one. This is evident from how residents of the capital city of Victoria are employed in various industries: from entertainment, hospitality, tourism, to trade and education. Therefore, there is solid job growth and migrations – be it inter-state or abroad. Despite today’s challenges that quiver the global economy including the Australian economy, the momentum of the property market in Melbourne has resulted in a ‘wealth effect’ for many of its residents who are enjoying wealth on the back of the increasing value of their homes.

2. Would it be advisable for me to invest in Melbourne where the Australian Dollar (AUD) can be volatile at times?

Yes, in fact, many investors are leveraging on the relatively sustained Australian Dollar (AUD). Given the overall economic and political stability that Australia has, the pointers seem more favourable than adverse.

3. Would there be a steady price growth? What about growth in the future?

According to verified sources, Melbourne’s property market is expected to surpass Sydney, the city with the largest population in Australia. This has happened previously. Ideally, property prices should grow steadily on a yearly basis. In general, Malaysian investors favour steady markets over Asian markets that experience sharp market price increases, which can be worrying.

4. What if I’m moving to Melbourne with my family? Will we have peace of mind there?

While there is no such thing as absolute safety, crime rates in the vibrant city are low. For six consecutive years, Melbourne has been ranked ‘the most liveable city’ in the world by a forecasting and advisory services provider. The city, which takes pride in its culture, also recorded the highest score in terms of education, infrastructure and healthcare.

5. Can you tell me a little more about properties in the suburbs?

The suburbs are where many undervalued properties are located. Besides time, studies have found that properties around Melbourne’s Central Business District (CBD) and in bayside suburbs near a water source will grow in value more rapidly than other suburbs and properties. While land is unavailable for release, the suburbs remain near one’s preferred locations or place of work, making the demand for property in these areas higher than in any other region. Melbourne’s transport system and amenities are worth experiencing. This is especially in the Growth Corridors, where there are several job openings, shopping and entertainment spots, as well as other family-oriented amenities. Evidently, capital appreciation is at a solid double-digit growth rate. Notably, property prices in the middle and outer ring suburbs are still affordable. The high occupancy rate is the driving force behind the high demand in rental.