According to a recent survey report released by CBRE, Melbourne has been named the most Australian city in Australia and the Pacific region that is favored by real estate investors.

This is the first time that Melbourne has surpassed Sydney and has become the most preferred city for overseas real estate investors.

The results of this list are based on a number of authoritative real estate investment agencies including real estate funds, developers, and corporations. Of these, 70% were from Asia, 18% from Western Europe, the Middle East and North America, and 12% from Asia Pacific.

In the list, Melbourne ranks second in the Asia Pacific region, second only to Tokyo in Japan.

The complete list is as follows:
1. Tokyo
2. Melbourne
3. Singapore
4. Shanghai
5. China tier 2/3 cities
6. Sydney
7. Japan regional cities
8. Brisbane
9. Hong Kong
10. Beijing
Globally, Australia has been listed as the second most popular overseas investment destination for Chinese buyers, second only to the United States. The search information on realestate.com.au also shows that Melbourne is still their favorite Australian city.

The report points out that the reason why Melbourne will be popular is because of the low vacancy rate and the rapid increase in rents.

According to the “Australian Financial Review”, the average rent in Melbourne for the quarter was 5 yuan higher than that in December, and the average rent was up to $430, which was a large increase in most areas.

The report pointed out that “the motivation for investors to invest in real estate is the diversity of sound income channels and asset breakdown.”

In general, the return on house investment is reflected in two aspects:

1
Short-term return, that is, rental return
Rental income > The interest generated by investment loans forms positive cash flow and ensures the integrity of the capital chain.

With the acceleration of population growth, more and more apartment projects have emerged in order to properly place more and more people into Melbourne.

From the point of view of rental income from investment houses, if the monthly rent of the apartment is higher than the repayment amount, the extra cash flow can be placed in the hedging account, so that the investors are still unknowingly reducing the loan while they are in all houses. Once the cash flow generated by the property portfolio exceeds that required by daily life, the investor can smoothly reach the stage of financial freedom.

2
Medium and long-term return, that is, real estate appreciation rate
The rise in land value has driven up housing prices. Through bank valuation and leverage principles, more money can be pledged to invest in the next set of real estate projects.

The value of real estate (mainly land value) itself already exists, but was not quantified before development. The increase in the value of the land after realizing it is a matter of early purchase of this land. Therefore, the appreciation of most real estate is mainly achieved through the appreciation of land and regional land prices.

In addition, according to a survey conducted by Investorist, another property website in Australia, homebuyers’ incentives to buy houses have also changed.

For Chinese people who choose to invest overseas, in addition to asset protection and wealth creation, more people choose to invest in housing in Australia because of children’s education, lifestyle, and potential immigrant plans.

In Melbourne, foreign buyers mainly choose historic suburbs and are close to private schools such as South Yarra, Toorak, Canterbury, Kew and Hawthorn.

Asian buyers in particular need to find modern apartments or upscale homes with independent rooms, especially those with large indoor and outdoor living areas, multiple bedrooms and separate storage rooms or kitchens. The value of the property invested is between A$3 million and A$8 million.