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Melbourne best performing city for investors

By Staff Reporter
17 December 2009 | 1 minute read

Affordability is the word when it comes to considering long term investment returns, according to Residex.

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The company’s chief executive officer John Edwards, said cities like Sydney did not represent a good long term investment option because it was an expensive place to live and there was a limited amount of stock.

“For the last decade Sydney house prices have grown the least of all markets on average; a mere 6.6 per cent pa, while Australia as a whole posted an average annual growth rate of 9.9 per cent pa,” Mr Edwards said.

While Sydney investors have almost doubled the return on their investment over a decade, other cities, where property is more affordable, have offered a return of almost triple the initial outlay.

“This was the situation for those who put their money into Brisbane, Perth and Hobart houses,” Mr Edwards said.

“As unlikely as it seems, people investing in Hobart did best of all as their investment increased by 3.2 times. That is, a typical Hobart property purchased for $116,000 ten years ago is worth $372,500 today; a stunning result,” Mr Edwards said.

“Melbourne, given its current population growth and strong economy suggests that, of all our major capital cities it presents potentially the best future risk return outcome and a rate of growth which should exceed what may be achieved by Sydney,” he said.

“If we look at the long term outcome, Melbourne will in all probability perform better than we have seen in the last decade for Sydney,” said Mr Edwards.

Melbourne best performing city for investors
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