Melbourne's most risky property investor dominated suburbs

Melbourne's most risky property investor dominated suburbs
Jonathan ChancellorDecember 7, 2020

There is no surprise investor activity is heavily concentrated within the capital city inner city unit market. But the latest charts from Cameron Kusher at CoreLogic RP Data provides insights into the elevated level of investor purchasing. 

There are many suburbs were investors represent 50% plus of apartment buyers. Melbourne has the highest levels of investor activity for units, followed by Brisbane, Adelaide and Sydney.

The spread of house investors are not an issue, other than one location in Brisbane. 

Chart 7

Source: CoreLogic RP Data

As Kusher suggests, if many investors were to exit the market at a similar time in search of superior returns, that could have some serious repercussions for the inner city unit market and potentially the wider housing market too.

Investors own a staggering 89% of units in Travancore, the Melbourne suburb.

Their report noted the suburbs with the highest levels of investor apartment ownership are often those with significant and large developments so Travancore, ranked above KingsvilleCarltonElwoodNotting HillHawthorn and Melbourne.

Each of these areas has more than seven in 10 units owned by an investor.

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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