Property investors are returning to Victoria – and they’re building new homes

AFTER a period of uncertainty, property investors are making their way back to Victoria, and for good reason.The state’s property market is showing strong signs of recovery, with Melbourne now the state’s most affordable capital city for new home purchases.

Competitive rental returns, developer rebates on new allotments and builder’s incentives are creating a unique window of opportunity in underpriced new home builders.

For savvy investors, this is the ideal time to secure a foothold in Victoria – especially in growth areas such as Geelong.

Capital growth on the rise

Victoria has long been a prime market for property investment, and recent data suggests that the state is once again delivering solid capital growth. With demand for housing increasing due to population growth and limited supply, property values in key locations are trending upward. Investors who secure land and build new homes today are positioning themselves for significant appreciation in the coming years.

Geelong, in particular, has emerged as a hotspot for capital growth. As Melbourne’s affordability challenges push buyers further afield, regional cities like Geelong are benefiting from increased demand, improved infrastructure, and lifestyle appeal.

Strong rental yields and low vacancy rates

Victoria’s rental market is thriving, with high demand for quality housing driving up rental returns. Vacancy rates remain low, ensuring that well-located properties attract tenants quickly. For investors looking for steady cash flow, new homes provide the added benefit of higher rental appeal due to their modern features, energy efficiency, and lower maintenance costs.

Government incentives, such as first-home buyer grants and stamp duty concessions, have also helped fuel demand in the owner-occupier market, meaning investors can confidently build knowing there will be strong buyer interest in the future.

Underpriced opportunities in new homes

One of the biggest advantages for investors today is the opportunity to build at competitive prices. While the cost of established homes has begun to rise, many land releases and house-and-land packages remain attractively priced—especially in high-growth corridors.

For those considering their next investment move, the time to act is now. With capital growth, rental demand, and competitive build prices aligning, Victoria is again the smart choice for investors. Want to explore new build opportunities? Contact Greenfield Homes today.

Daniel Senia is the co-founder of Greenfield Homes, with more than 20 years’ experience in the new home buying industry working with some of Australia’s largest home builders and developers.

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