Melbourne market overview
Greater Melbourne is home to more than 5.2 million people and is forecast to overtake Sydney as Australia's largest capital within the next decade. Sustained net migration, a deep apartment pipeline through the CBD, Docklands, Southbank, Box Hill and Footscray, and a refreshing Class A office stock keep Victorian investors among the most active depreciation claimants in Australia.
Build-to-rent has emerged as a meaningful asset class through Footscray, Brunswick, Richmond and the inner-north renewal precincts, generating large, schedulable plant & equipment values per dwelling. Industrial activity is concentrated through Western Melbourne (Truganina, Tarneit) and the Dandenong corridor.
Indicative market figures only.
Tax Depreciation for Melbourne property investors
An engineering-based TDA depreciation schedule identifies every deductible asset on your Melbourne property under Division 43 Capital Works (the building shell, claimable at 2.5% p.a. for 40 years where construction commenced after 15 September 1987) and Division 40 Plant & Equipment (carpets, blinds, hot water systems, air conditioning, common-property assets, and more).
For residential property acquired after 9 May 2017, the s40-27 second-hand restriction limits Division 40 deductions to first-use assets - we model this explicitly. Capital works (Division 43) remain fully deductible regardless. Commercial property and qualifying short-stay accommodation businesses retain the full Division 40 deduction.
Sub-markets we cover
- Inner Melbourne apartments - CBD, Docklands, Southbank, South Yarra, St Kilda, Carlton
- Inner-north renewal - Brunswick, Northcote, Fitzroy, Collingwood, Richmond
- Eastern growth corridor - Box Hill, Glen Waverley, Ringwood, Doncaster, Mount Waverley
- Western growth corridor - Footscray, Sunshine, Werribee, Truganina, Tarneit
- Industrial & logistics - Truganina, Laverton, Dandenong South, Altona North, Campbellfield
