How Much Does an Apartment Cost In Melbourne?

Are you planning on moving to Melbourne? 

Melbourne has one of the best living standards in Australia, second only to Sydney. As the State capital of Victoria, Melbourne is a financial and education hub as well as culturally vibrant with lots of restaurants, attractions, and a curious mix of Victorian and contemporary architecture. 

From a population of almost five million inhabitants, only 70, 000 people live in the centre of Melbourne. Owning a property here is most definitely a good idea, not least because you’re almost assured of getting a return on your investment. 

Apartments do not come cheap here, though, and the cost of an apartment will depend on various factors. 

Where Should You Buy in Melbourne? 

The two main factors you should consider when picking the location of your apartment in Melbourne are location (gentrification), and price.

You should aim to strike a balance between the two; more gentrified suburbs are typically more expensive, and cheaper suburbs may lack essential social amenities, and also suffer from undesirable factors like high crime rates. When deciding which suburb is best for you, you should consider factors such as: 

Transport options

  • Proximity to the CBD
  • Economic Prospects
  • Tele-Communication Infrastructure
  • Social Amenities Like Sports Facilities, Schools, And Shopping Malls
  • Crime rates

What Factors Influence the Price of a Flat in Melbourne?

Location and price are not the only factors that influence the cost of an apartment in Melbourne. Several key factors come into play, which affects how much you’ll pay for your apartment. These include:

Construction Stage

Developers start selling houses as soon as construction kicks off. The prices of apartments in development depend on the construction level of the building. If you purchase off-plan at an earlier stage of the construction, you’re likely to get a better deal, than if you bought later or when the building is complete.

Plan to buy your apartment earlier to save on the overall cost. 

Size 

Size is the other determinant of how much you’ll pay for your apartment. Apartments come in different sizes and designs, and studios, penthouses, and loft apartments each fall under different price brackets. 

If you want a large and spacious apartment, you should opt for a loft apartment; however, if space is not an issue, a smaller studio apartment would be ideal.  The number of bedrooms and bathrooms also determines how much you’ll pay; the more the bedrooms and bathrooms in your unit, the more you can expect to pay. 

So, depending on your budget, settle on the apartment that fits in with your spending power. 

Amenities Included

The price you pay for your apartment will also depend on which amenities are present in the development. 

Amenities increase the desirability and liveability of your apartment. If you are buying for investment purposes, could also get a higher rent from future tenants.  

In-apartment amenities like stovetops, washer and dryers, central heating and air conditioning, as well as microwaves, could increase the buying price of your unit. Likewise, community amenities like swimming pools, mini grocery stores, fitness centres, and movie theatres, could also see you pay more for a unit.

Service Charges

While an apartment may sound more affordable to buy or rent, this type of housing also has associated services charges for services like:  

  • Sewer and Waste Management
  • Parking 
  • Landscaping 
  • CCTV and Security 
  • Caretaker’s Salary

This cost may not be apparent when you’re purchasing your unit, but will most definitely feature in your monthly expenditure once you occupy the apartment. Always consider these hidden costs and assess them against possible benefits before signing on the dotted line of the sale agreement.  

So, How Much Do Apartments in Melbourne Cost on Average? 

Melbourne’s average unit price was $549.701 as of December 2019, and is forecast to rise by 5% in 2020. Melbourne is the second-most expensive Australian capital city to buy an apartment in after Sydney, which had a median unit price of $ 735,387. 

However, as is the case in most large cities in the world, some suburbs are more expensive than others. Whether you’re looking to grab a bargain-basement price for investment purposes or are all-in for a high-end unit, Melbourne has it all. 

For instance, looking at the outer suburbs of Melton and Craigieburn, you’ll find that most flats went for, on average $390,000 and $310,000 respectively. Contrast those prices with the inner-city suburb of Toorak, where a unit goes for, on average, $930,000; triple the cost of the previous two suburbs.

These median unit prices show clearly that location influences price in a big way. You must, therefore, decide which area fits your pocket to get the best deal from your apartment purchase.

Melbourne SuburbAverage Unit Price
Avondale Heights$520,000
Caulfield North$620,000
Elsternwick$602,500
Glen Iris$630,000
Hawthorn$500,500
Hawthorn East$610,000
Mont Albert$750,000
Murrumbeena$490,500
St Kilda East$550,175
Surrey Hills$727,000

Average apartment unit prices in Melbourne suburbs according to research done by People Choice Credit Union.

Bottom Line

As you can see, the apartment cost in Melbourne depends on several aspects like size, included amenities, and construction stage, but location outweighs them all. Expect to pay more for apartments located closer to Melbourne’s CBD, and factor in service charges for those locations before purchasing your unit. 

We’re here to make the process of buying apartments in Melbourne quick and hassle-free. If you want to learn more about purchasing both complete and off-the-plan apartments, please get in touch with our experts at Buy Melbourne Apartments online or call 0417 331 263. 

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