5 Points You Should Know About Melbourne Property

Nowadays, more and more property investors are attracted to investment in the Melbourne real estate. However, many are still unfamiliar with knowledges related to Melbourne real estate investments.

1.What is a commercial property?

In the Melbourne property market, commercial properties are neither vacant, nor used for residential.

Commercial properties include three types of properties: shopping malls, factories and offices. They are divided into three different classes: retail, office, and industrial. Among them, retail includes two types of stores, such as shopping malls and restaurants, whilst industrial work includes factories and warehouses.

2.What does rental return mean?

Just like all other Melbourne property investment projects, the rental return on commercial properties will change depending on the actual situation.

Compared to the rental return of residential properties in the Melbourne real estate, which is about 4- 5% per year, the income received from commercial property investment is higher. However, the location, building quality and the market at that time will affect the amount of income received.


3.Which type of Melbourne property costs more?

For commercial properties, most fees are paid by tenants, such as municipal taxes, maintenance fees and property management fees. However, for residential properties, Melbourne property investors must pay 30% of the total rental income. Thus, commercial properties costs as low as 5%.

4.What if the tenant no longer renew lease?

Although in general, the leasing period of commercial properties last longer than residential properties, but vacancy rates for commercial properties remain a major problem in the Melbourne real estate. For residential properties, if the tenants move out, new tenants will soon apply for residential. However, for commercial properties in the Melbourne property market, finding a new tenant may take a few months or more. This means that if a Melbourne property is left vacant for a long time, the property owner must be prepared to meet mortgage liquidity. 

5.Checking the lease agreement

In the Melbourne real estate, the lease agreement for commercial properties are much more complex than residential properties. So make sure you understand content in the lease agreement. If you have any questions, always seek professional advice from your Melbourne property managers.

For further enquiries, please do not hesitate to contact our professional Melbourne property managers on 1300 354 839 for more information and advice.



268 Russell street, Melbourne vic 3000 Australia
+61 3 9663 9977

455 Elizabeth street,Melbourne vic 3000 Australia
+61 3 9326 9977

200 Spencer street, Melbourne vic 3000 Australia
+61 3 9642 2298

228 A'Beckett St, Melbourne vic 3000 Australia
+61 3 9088 6299


Room 126, Block 2,
750 Zhongshan Xi Road,
Changing District, ShangHai 200051, China
Tel: +86 21 5466 6560
Fax: +86 21 5466 6560

10/f seattle business plaza
69 south xian rd
chengdu, sichuan 610071
Tel: +86 28 8608 2806
Fax: +86 28 8608 2807