Hi all, I currently live o/s and I'm looking to invest in a 2bdrm terrace in a solid "bluechip" suburb in either Melbourne or Sydney such as inner west+southwest in Sydney (eg: anywhere from Annandale through to Erskineville). Melbourne I'm looking anywhere in that entire inner east corridor eg: Collingwood all the way down to Elwood. The value for a stock standard turnkey 2 bdrm terrace is definitely better in Melbourne at PRESENT. My question is whether the long-term buy and hold dynamics suit Melbourne better than Sydney? eg: My gut feeling is that in 20 yrs time, there will be almost no discernible price difference for say a 2 bdrm terrace in South Yarra vs Annandale. That would imply that over that time-frame the Melbourne market will perform marginally better year on year than Sydney. Am I on the right track or got rocks in mah brain? Thoughts?
Cant go wrong with either. Its like apples or Pairs. They maybe things that happen out of ones control that make one city accelerate over the other. Who know. I will still say Sydney being more landlocked will eclipse Melbourne in Blue chips.
My gut tells me that Sydney (even if ever so slightly), will always be on top. We both can't be right. Hedge your bets and buy 1 in Melbourne and 1 in Sydney. Meet back here in 20 years
To be fair I was basing that opinion on population growth forecasts and demographics and also major employment sectors which are high paying (eg: financial, corporate etc). Melbourne has ALWAYS lagged behind Sydney but it is now catching up and within the next years will probably remain on par with Sydney (maybe even surpass). Those factors are relevant when considering property values in the sort of suburbs we're talking about (ie: places where relatively wealthy young professionals want to live). .... but yeah, one in both is a solid plan ;-)
My crystal ball says Sydney, mainly due to geographical constraints. Look at Sydney on google maps, adjust zoom so you can see all metro area. Then without changing zoom, scroll down to Melbourne. There is so much more land for housing. Added to that the attraction of Sydney's harbour, beaches, opera house, harbour bridge. Melbourne has it's fair share of attractions too but the above IMHO are big calling cards for those choosing between the two, especially from o/s. Melbourne's population will grow faster though. So I would be making a decision on whether increased population coupled with increase supply on the outskirts will result in a higher inner ring price Or whether slightly lower (but still high) population growth with constrained supply everywhere will win out. Actually, in your shoes, I would be going for a Sydney house, near transport, ideally corner block. You may have to go out a bit more but the land component is going to appreciate exponentially more than an apartment as densification accelerates. Good luck!
I’m super biased but Melb is supposedly overtaking Syd on a few major metrics, yet the price gap is substantial. That said can Melb ever command the same international status as Melb? By the way blue chip is probably more Richmond to Glen Iris and everything in between. The other direction is solid but wouldn’t be traditional blue chip
