Are Melbourne apartments the most underrated investment opportunity for 2025?

For years now, investors and homebuyers alike have steered clear of Melbourne apartments—especially those in high-density towers—fearing oversupply, poor quality builds, and lacklustre capital growth.

But what if that narrative is outdated?

What if the very segment that’s been overlooked is now poised for a significant turnaround?

In today’s show, I’m joined by Stuart Wemyss, to explore a bold yet data-backed prediction: Melbourne investment-grade apartments are about to enter a period of strong capital growth.

We'll unpack the economic, demographic, and market forces that are aligning to reshape this sector, from soaring house prices and increased rental demand, to limited new supply and a shift in buyer preferences.

So if you’ve ever dismissed Melbourne apartments as second-tier investments, this conversation may just change your mind.

Takeaways

· We're entering a rare window of opportunity.

· Melbourne apartments are going to increase in value.

· Don't be the one who hesitates.

· The IKEA effect explains our investment choices.

· Not all apartments make good investments.

· Investment grade apartments have strong land value.

· The price gap between houses and apartments is closing.

· The government is boosting first home buyer grants.

· There's a supply shortage in the apartment market.

· Melbourne apartments are the most underrated investment opportunity.

Chapters

01:33 Introduction to Investment Opportunities in Melbourne Apartments

04:20 Understanding Investment Grade vs. Investment Stock

07:00 The Impact of Supply and Demand on Apartment Prices

09:42 Government Incentives and Their Effects on the Market

12:45 Market Trends and Future Predictions for Melbourne Apartments

15:37 The Role of Interest Rates and Borrowing Capacity

18:10 Historical Performance and Market Cycles

20:55 Conclusion

Links and Resources:

Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us

Michael Yardney – Subscribe to my Property Update newsletter here

Stuart Wemyss – Prosolution Private Clients

Stuart’s Book – Rules of the Lending Game & Investopoly

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Also, please subscribe to my other podcast Demographics Decoded with Simon Kuestenmacher – just look for Demographics Decoded wherever you are listening to this podcast and subscribe so each week we can unveil the trends shaping your future.

Resurgence of investment-grade apartment prices in Melbourne–Stuart Wemyss

Property Investment & Wealth Creation Australia | The Michael Yardney Podcast