Melbourne Landed Homes: A Fraction of Singapore's Prices!
10-Oct-2024
Melbourne vs. Singapore: A Decade of Property Growth
If you've been observing property trends in Singapore, you're well aware of the challenges that come with purchasing a landed property in the city-state. Prices have surged over the past decade. But what if I told you that there’s a place where you can afford a landed property with just a million dollars? Melbourne offers exactly that opportunity—a city that’s quietly grown in value yet remains accessible to investors ready to seize it.
In this article, we’re going to dive deep into how Melbourne’s property market has risen, what makes it unique, and how it compares to the soaring Singapore market.
Melbourne House Prices vs. Singapore’s Landed Index: A Comparison
The Rise of Melbourne House Prices Over the Past Decade
Over the last decade, Melbourne’s house prices rose an impressive 67.7%, while Singapore’s private landed properties increased even faster, up 50.7% since 2014. However, the median house price in Melbourne today is $1,024,000 AUD (October 2024). Just ten years ago, you could purchase a typical house for about $610,000, whereas in Singapore, you’d need around $3 million SGD for an entry-level landed home.
In comparison, while unit prices have also risen—up 31.7% to a median of $572,000—they have not kept pace with houses. This discrepancy highlights the enduring value of land in Melbourne and reinforces the notion that investing in houses is often more lucrative than units.
Singapore Market Overview
It’s true that Melbourne’s landed properties are seen as more resilient than high-density options—and perhaps more resilient than Singapore’s too, given the differences in urban planning and market dynamics.
- Stable Demand for Landed Homes
Melbourne’s housing market has a persistent demand for landed homes. A house here is more than just a home; it’s an asset on finite land that sees constant demand.
Looking at Singapore’s landed property price index, we see a steep rise:
- From 206.2 in 2014 to 310.7 in 2024. This index growth represents a significant gain in value for those who invested years ago.
- Non-landed properties have also seen growth, though less steeply, from 178.2 in 2014 to 282.4 in 2024.
Singapore’s limited land, coupled with demand for high-quality urban housing, has pushed landed properties well out of reach for many. This makes Melbourne an appealing alternative for buyers who want both space and investment potential without breaking the bank.
Even during the global pandemic, Melbourne’s landed properties have continued appreciating, fueled by a high demand for land and a stable supply response. Investors here enjoy growth, more affordable entry points, and a lifestyle that appeals to those interested in migration, education, retirement, or simply diversifying their portfolios.
Why Melbourne Properties Present a Resilient Investment
It’s true that Melbourne’s landed properties are seen as more resilient than high-density options—and perhaps more resilient than Singapore’s too, given the differences in urban planning and market dynamics.
- Stable Demand for Landed Homes
Melbourne’s housing market has a persistent demand for landed homes. A house here is more than just a home; it’s an asset on finite land that sees constant demand.
- Flexibility with Property Choices
Melbourne offers a variety of properties, from detached houses to townhouses, with large blocks of land. This diversity caters to various lifestyle needs and investment goals, making Melbourne’s market appealing to both young families and retirees alike.
- Consistent Price Growth
Even with slower growth compared to Singapore’s, Melbourne has maintained consistent upward price trends over the years. That reliability makes it a safer bet, especially for investors looking for steady long-term gains rather than volatile spikes.
Advantages of Investing in Melbourne vs. Singapore
“Good things come with a thorn,” as they say, and while Melbourne offers exceptional value, there are considerations. Foreign investors face a land tax, higher than local buyers, but even with this, Melbourne remains significantly more affordable. Here’s how Melbourne stands out:
Entry Price: With $1 million AUD, you can secure a spacious home in a desirable Melbourne suburb. In Singapore, you’d need at least $3 million SGD for a similar opportunity.
Investment Flexibility: Melbourne’s diverse neighborhoods provide options for every price range, from central areas near the city’s cultural hubs to suburban zones ideal for families.
Growth Opportunity: Melbourne’s population growth and commitment to sustainable urban development suggest ongoing demand, which bodes well for long-term price appreciation.
In other words, while Singapore’s market may offer rapid value escalation, Melbourne’s offers affordability, quality, and a solid rate of growth—ideal for those wanting to invest without overstretching.
3 Tips for Singaporean Investors
3 Tips for Singaporean Investors
Investing in a foreign market can feel daunting, but with Melbourne’s strong fundamentals, there are ways to minimize risk and maximize returns:
1. Timing Is Everything
Melbourne is currently experiencing a market correction—a prime time to invest before prices rise again. This period presents a rare window, and savvy investors understand that buying during a correction often leads to larger gains when the market rebounds.
2. Know Your Suburb
Each area in Melbourne has its distinct appeal. South-eastern suburbs are popular among Asian communities, known for good schools and amenities. Inner suburbs are close to the city’s vibrant core and attract younger professionals and those looking for a trendy urban lifestyle.
3. Look for Land Tax Benefits
Land tax for foreign investors is higher, but you can minimize it by choosing properties strategically. You can work with us if you want tailored advice for your foreign investment.
While Melbourne’s market is currently more affordable, trends show that prices are set to climb again as population growth surges and demand for housing intensifies. In other words, if you delay, you may find yourself priced out of the very market that’s accessible now.
Imagine watching Melbourne’s property values soar over the next decade, knowing you missed a chance to secure a home at a price you could comfortably afford today. Land is finite, demand is only growing, and, as history shows, Melbourne’s landed properties are likely to appreciate further. By waiting, the risk isn’t just about a higher purchase price—it’s also about higher interest rates, reduced options, and perhaps, missed opportunities in Melbourne’s most desirable neighborhoods.
Final Thoughts: Melbourne, the Smart Investment You Can Afford
With every detail laid out, it’s clear that Melbourne presents a rare opportunity for Singaporeans and global investors alike. It combines the best of what investors look for:
- an affordable entry price,
- a stable rate of appreciation,
- a range of property types, and
- a lifestyle many aspire to.
By choosing Melbourne, you’re not just buying property—you’re securing a piece of a dynamic, evolving city that offers long-term value.
By choosing Melbourne, you’re not just buying property—you’re securing a piece of a dynamic, evolving city that offers long-term value.
Whether you’re considering property for migration, a nest egg for retirement, a base for education, or simply a high-yield investment, Melbourne has it all. The market correction won’t last forever, and when prices inevitably climb, those who seized the moment will be the ones reaping the rewards.
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Imagine a future where you own a property in one of the world’s most liveable cities—affordable, promising, and growing. Don’t let this moment pass you by.
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