Melbourne real estate: Cranbourne proves hit in list of top 50 suburbs for investors.

The latest real estate stats are in, and Melbourne’s south east is heating up for investors. Find how where you need to invest.

This Botanic Ridge home has set a new record for one real estate agent, selling for just under $1.4 million in April. ​PICTURE: Paul Jackubicki, Complete Image / Barry Plant.

If you’re planning to invest in Cranbourne, now is the time.

Six suburbs in the City of Casey made the list of Melbourne’s top 50 suburbs to invest in, showing that the south east property market is as reliable as ever.

The three key investment metrics measured by the realestate.com.au data were long-term capital growth, rental yields and demand from tenants.

The six Casey suburbs that hit the mark were Clyde North, Narre Warren, Cranbourne North, Cranbourne, Endeavour Hills and Cranbourne West.

Brad Spencer, from Barry Plant Cranbourne, said the area had been a consistent performer in the seven to eight years he had worked in the area.

“As an investor, the area has everything you’re looking for,” Mr Spencer told Leader.

“It’s close to schools, sporting clubs, major shopping centres, and it’s not far from the city if that where you’re working.

“So it’s going to be ticking lots of boxes for the families who would be renting from you.”

In general, Melbourne’s south east was the standout performer in the list recently compiled and published. 

Along with the municipality of Casey, suburbs such as Keysborough and Noble Park from neighbouring Dandenong featured.

Moving one step further south, Frankston had a staggering eight entries in the data.

Mr Spencer said he’s just broken a record in the City of Casey, selling a property in neighbouring Botanic Ridge for just under $1.4 million in April.

“I’m not joking, we’re getting 15-20 calls a day on properties in Cranbourne.”

Mr Spencer said he predicts the next big mover to be suburbs further east, such as Lang Lang and Koo Wee Rup.

“The locals are starting to pick up on it. I’ve sold two recently.”

The data explained

The list was created by realestate.com.au to feature suburbs in the top half of distribution for three metrics:

1. 10-year median price growth: percentage change in median price in year to June 2021, compared with year to June 2011.

2. Rental yield: how much profit you generate from your investment as a percentage, calculated by determining the annual media rent as a proportion of the median price.

3. Annual change in rental demand: based on searches on realestate.com.au by “high-intent renters” who have looked at multiple properties, made inquiries with agents and booked inspections.

Investor cashflow: the monthly rent a property earns minus monthly mortgage payments (assuming a 30-year mortgage, 80 per cent loan and 2.73 per cent interest rate).