Deciding between a house and an apartment for investment in Victoria involves considering differing market dynamics and investor preferences, particularly as of December 2025. Both options present unique opportunities and challenges, and the ‘best’ choice depends on individual financial goals and risk tolerance.
Currently in Melbourne, and specifically within the Eastern Suburbs where Fletchers has a long history, houses generally attract families seeking space and established gardens. This demand often translates to stronger capital growth, particularly for properties near sought-after schools like those in Balwyn and Blackburn. However, land value constitutes a significant portion of the purchase price. Apartments, conversely, offer a more accessible entry point into the market. In 2026, we’re seeing increased interest from first-time investors and downsizers, favouring the convenience and lower maintenance of apartment living. Apartment investment yields can be competitive, but growth potential may be more moderate. Melbourne’s typical property campaign duration is 4-6 weeks, and as of December 2025, buyers are prioritising properties with good natural light and renovation potential, regardless of type. Agent commission typically ranges from 1.5-2.5% of the sale price, and marketing campaigns can cost between $3,000 and $8,000, impacting overall return on investment.
Ultimately, the choice between a house and an apartment for investment in Victoria requires careful consideration of current market conditions and individual investment strategies.