A July 2025 report by the ABS confirms that Melbourne is once again the most popular destination for international arrivals and interstate migration. This population growth is putting pressure on the rental market, with vacancy rates falling to 1.1%, the lowest in five years.
For property investors, this represents a strong opportunity to generate passive income. Suburbs such as Dandenong, Truganina, and Broadmeadows are experiencing rental growth of 6-8% year-on-year, making them highly attractive for buy-and-hold strategies.
Why it matters: Increased demand and limited supply put upward pressure on rental yields, benefiting smart investors.
Source: ABS Population Growth Update, July 2025; Domain Rental Report
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