Melbourne’s new 1-bedroom supply has hit its lowest level since 2008, with only 400 units completed in Q1 2025. Most new construction is build-to-rent-not for sale-while demand surges from students, professionals, and migrants priced out of 2-bedroom units.
Are You Missing Out While Others Lock in High Rents?
Rents are near all-time highs:
- Median rent: $600/week (March 2025), up 4.5% YoY.
- 1-bedroom rent growth: 4.2% annually, outperforming larger units.
- Rental yields: 4.3–5.1%, with CBD units most resilient.
- Vacancy rates:
- Inner-City (0-4km): 3.0% (March 2025), up from 2024 but still below the 3.3%
long-term average.
- Greater Melbourne: 1.5% (March 2025), down from 1.8% in February.
Have Prices Already Started Rising?
1-bedroom prices: Fell 1.3% over the past year but rebounded 1.5% in Q1 2025.
Sales activity: 1,200 Inner-City transactions in Q1 2025-the strongest start since 2022.
This signals a bottoming out—and a new upward trend. If you wait too long, the next time you check prices, they'll be higher.
What Are the 3 Smartest Projects Left to Buy in Melbourne Right Now?
1. Atlas Melbourne by Setia- Is This Your Last Chance at CBD Entry Pricing?
Located in a prime position, Atlas Melbourne is a well-designed, high-quality development with a strong track record.
Starting Price: $732,000 to $750,000 (1 bed, 1 bath, 52 sqm)
Bigger Options (with MPR): $778,000 to $791,000 (59–61 sqm)
Why It Stands Out:
- Brand new inventory
- Prices still starting in the low $700Ks
- Strong per-square-metre value
- High floor availability (views, natural light)
- Ideal for single professionals or couples
These units are priced to move. High rental demand in the CBD ensures consistent income. |
2. Aria Melbourne – Premium Living with Study + Car Park Options
Aria is perfect for owner-occupiers who want style, functionality, and extra space. With study areas and car parks, these homes are rare gems in the 1-bedroom category.
Prices from: $795,000 to $960,000
Unit Sizes: Up to 91.9 sqm (inclusive of car park + study)
Why Aria Wins:
- Car park options available (from $900K)
- Designed with lifestyle in mind
- Ideal for migration, education buyers
- Boutique developer with luxury finishes
Aria is more than an investment—it’s a future-proof lifestyle purchase. |
3. R. Evolution– Smart Buyers’ Darling
This project balances location, value, and future capital upside—perfect for investors or young buyers.
Prices: $747,500 to $905,200
Sizes: From 61 sqm to 86 sqm (some with study)
Why It Makes the List:
- Flexible floor plans with studies
- High ceilings and natural light
- Strong rental demand in surrounding precinct
- Near future Metro upgrades
| This is perfect if you want both capital growth and high yield. |
Is Melbourne Still Worth It Compared to Singapore?
Absolutely. Let’s compare:
| Feature | Singapore (HDB) | Melbourne (1-Bedroom CBD) |
| Budget | S$800K | A$732K - $905K |
| Size | 45-64sqm | 52-91.8sqm |
| ABSD | 20% on 2nd home | 0% |
| Rental Yield | 2-3% | 4.3-5.1% |
| Usage | Owner-occupy only | Rent, live, or sell anytime |
Now you know why Singaporeans are choosing Melbourne right now. In Singapore, $800K SGD barely gets you a resale HDB.
In Melbourne, that same budget buys you a CBD luxury 1-bedroom, with strong rental returns, future resale upside, and lifestyle perks.
- No ABSD
- Freehold ownership
- Rental yields 4.3% to 5.1%
- Stamp duty incentives for international buyers (varies by VIC policy)
- Migration eligibility through real asset ownership
- Position your child for world-class education
And did I mention Melbourne ranks as the #1 student city in Australia and consistently in the Top 10 Most Livable Cities in the World?
Now, Can You Really Afford to Wait?
- Renters are turning into buyers—quickly.
- Rental yields are compressing as prices recover