Melbourne and Sydney climb the global Liveability Index

What does the global liveability index measure?

The global liveability index is a measure of a city’s desirability as a place to live and is based on a range of factors, including culture and environment, education and infrastructure. In the case of Melbourne and Sydney, both cities have seen significant investment in urban infrastructure over the past few years – from transport links to education and healthcare facilities. This has contributed to their scores on the index, as these investments help make them desirable places for people to live.

Why are more people choosing to move to Melbourne and Sydney?

Melbourne and Sydney have long been popular destinations for people looking to relocate internationally or from interstate. This is partly due to their strong economies, which have seen steady growth in recent years, and also because they offer a high quality of life and a multitude of amenities. With world-class restaurants, culture, education and entertainment venues, these cities continue to attract people from around the world.

According to the index’s most recent report, Melbourne has a score of 97.7 out of 100 – putting it in third place behind Copenhagen (98.0) and Vienna (98.4). Meanwhile, Sydney is in fourth with a score of 97.4. And the fact that these two capital cities are in Australia (with its strong economy and political stability) is a further attraction.

What is the current rental market like in Melbourne and Sydney?

With strong competition for rental properties, rental prices have increased over the past few years. Let’s break down the current rental property market of each city.

Melbourne

Historically low vacancy rates demonstrates that demand for rental properties is high, which has seen a 23.1% increase in apartment rents over the past year. The median asking rent for units has now hit a record-breaking $500 a week, which is $110 higher than a year ago according to Domain’s latest Rent Report. And thanks to the recent opening of international borders, rental demand is expected to remain strong. With Melbourne property prices rebounding post Covid, investors will be well-served by investing here.

Sydney

Sydney has been experiencing a rental housing shortage for a number of years, resulting in increased competition for housing and driving up rental demand. With record-low vacancy rates and high rent prices, Sydney is now the most expensive rental market in Australia. Strong demand, rising population, and the opening of international borders in early 2022 have all contributed to Sydney’s rental market heating up. The median asking rent for units is now $670 per week, according to Domain’s latest report.

What does this mean for investors?

The increased demand for rental properties in both cities presents a major opportunity for potential investors. With strong competition for rental homes, and with rents rising rapidly, investors can expect to enjoy a steady increase in rental income and high returns on their investments. So, if you are interested in investing in the Melbourne or Sydney rental market but have been sitting on the fence for a while, it’s important to start taking action. With increasing house prices and comparatively low interest rates, now is a great time to get into the market.

With a borderless approach to investing, you could benefit from the strong rental demand and high yields in either capital city. But it’s important to do your research and understand the local market before jumping in.

Final thoughts

The current rental market conditions in Melbourne and Sydney present a great opportunity for investors, as rental demand promises to remain strong in both cities for the foreseeable future. By doing your research and selecting the right property in the right location, investors can benefit from high rental yields and returns on their investments.

Ironfish’s My City Reports make it easy for property investors to get the latest data-driven insights into the various markets in Australia. Combined with the specialised guidance of our experienced and qualified property investment advisors, you can be sure of making an informed decision when it comes to your next real estate investment.