Identifying a good investment property involves assessing factors that contribute to both rental yield and potential capital growth, and these priorities shift with market conditions. As of December 2025, Melbourne’s property market is showing moderate growth, forecast to continue into 2026.
Currently in Melbourne, particularly within the Eastern Suburbs – Fletchers’ core area – buyers favour properties with strong school zones, proximity to transport, and renovation potential. Family homes in suburbs like Balwyn, Blackburn, and Ringwood consistently attract strong interest. While high-rise apartments can offer rental income, houses and townhouses generally demonstrate stronger capital growth. A well-maintained property requiring minimal immediate expense is also highly desirable. In 2026, presentation is key; buyers are prepared to pay a premium for properties that are move-in ready or clearly demonstrate potential. When preparing a property for sale, sellers typically budget between $2,000 and $8,000 for styling, recognising its impact on buyer perception. Fletchers’ experience shows that a comprehensive marketing campaign, costing between $3,000 and $8,000, is essential to reach the widest possible pool of qualified investors and owner-occupiers.
Ultimately, a good investment property in Melbourne balances current rental returns with the likelihood of future capital appreciation, influenced by location, property type, and market trends.