By 2028, the City of Melbourne is estimated to need about 21,600 more dwellings.
The first two are due in 2025. The Melbourne Greenline, a $224 million project, will reshape public spaces along the Yarra River and open a 4 kilometer route with more room for recreation and events. The author says this raises the value of neighboring residential property. The West Gate Tunnel Project, meanwhile, is a major road upgrade that gives drivers an alternative to the West Gate Bridge. It is meant to ease congestion and Improve the link between Melbourne’s west and the CBD.
In 2028, the North East Link arrives. It is the largest road project in Victoria’s history, tying together key arterial roads in the city’s north and east, shortening travel times, and supporting urban growth across that region. A year later, in 2029, the $268 million Queen Victoria Market Renewal is set to give the iconic market new public spaces, restaurants, and activities that draw residents and visitors. The furthest-off project is the Suburban Rail Loop, due in 2035. It will connect key suburbs, shorten commutes, and boost housing demand near transport hubs such as Clayton and Sunshine.
Looking at all five from a wealth advisory standpoint, the author concludes that real estate close to state-backed infrastructure supports steady tenant demand and protects capital through economic shifts.
Price is another draw. CBD apartments cost far less than detached houses, and the author names that gap as one of the main benefits of buying an apartment instead of land. In 2024, the median apartment price in the CBD was 56% below the median for a detached house. That makes apartments a much more accessible option for first-time buyers and institutional investors alike.
Rental figures point the same direction. Median weekly rent in the CBD rose to $750 in November 2024, up from $690 in 2023, an increase of 9% year over year. Vacancy stayed remarkably low, averaging 2.4% across 2024. Newly built CBD apartments have delivered gross rental yields of 4.8%, which adds to their appeal for investors seeking passive income through strategic acquisitions.
Room to build is running short, too. The CBD grid is close to full, and the report says these supply constraints should produce consistent growth in capital values, because demand keeps comfortably outpacing supply. Existing apartments, it follows, are likely to see significant capital appreciation. The author adds that for investors studying historical trends, scarcity in prime locations has always translated into superior mid-to-long-term returns.
The wider economy offers firm footing as well, including for leveraged investments and mortgage refinancing strategies. Unemployment was 4.0% in late 2024, well below the 10-year average of 5.3%, which the author reads as evidence of a resilient labor market and robust corporate health. Consumer confidence has rebounded: the ANZ-Roy Morgan Index gained 12 points year over year to reach 86.4 in December 2024. Inflation eased to 2.8% in September 2024. Taken together, the author says, these readings create a highly favorable environment for property investment and wealth accumulation.
Interest rates could add further momentum. Major banking institutions, including ANZ and NAB, forecast rate cuts that should reduce borrowing costs and stimulate more activity in the residential market. By December 2025, the Reserve Bank of Australia’s cash rate is expected to fall to between 3.35% and 3.85%, a move that would Improve affordability and borrowing capacity for investors entering the market.
Weighing every factor, the author sees Melbourne’s CBD as an exceptional opportunity: rapid population growth, transformative infrastructure, and strong rental performance, combined with scarce new development inside the CBD grid. That scarcity, he says, leaves existing apartments well placed for sustained capital growth. He nonetheless stresses that a diversified portfolio demands a clear strategy and a firm grasp of local market fundamentals, and he advises consulting a qualified property expert or financial advisor before making any commitment.
Two figures frame the whole debate: 21,600 dwellings needed and 8,900 apartments on the way. How the city answers the distance between them will shape what comes next for Melbourne’s CBD, and it is the number investors will keep returning to as 2028 approaches.
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