Can Foreigners Buy Property in Melbourne?

A Practical Guide For Foreign Buyers, Malaysian Parents & Property Investors

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One of the most common questions we hear from overseas buyers is: "Which area is the best to live in Melbourne?"

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It's a fair question — especially when you're buying from overseas, investing significant capital, or purchasing a home for your children studying in Australia.

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But after years of working with Malaysian families and investors, here's what we've learned:

There is no single "best" area in Melbourne.

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There is, however, a best approach — and understanding that difference can save you from making an expensive mistake. This guide is written specifically for Malaysian parents and investors, based on real experience rather than generic suburb rankings.

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What Overseas Buyers Really Mean When They Ask This Question

When international buyesr ask about the "best" area, they're usually concerned about:

• Proximity to top universities (especially University of Melbourne and RMIT)

• Long-term capital growth
• Reputable buildings and developers
• Completion timing and certainty
• The reputation and safety of the suburb

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These are all sensible priorities. The mistake many buyers make, however, is assuming that closer automatically means better — particularly when it comes to universities.

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Universities, Public Transport & Why Proximity Matters Less Than It Used To

University of Melbourne and RMIT University remain the two biggest drivers for Malaysian buyers in Melbourne. Traditionally, this led many parents to focus narrowly on areas immediately surrounding these campuses — particularly Carlton. While this made sense years ago, Melbourne's public transport network has evolved significantly.

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With major infrastructure upgrades, including the Melbourne Metro Tunnel, students can now reach universities quickly and easily from a much wider range of locations.

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What this means in practice:

• Being on a direct tram or train line is often more valuable than walking distance
• Areas slightly further out can offer better lifestyle, superior buildings, and stronger long-term appeal
• Properties with good transport access also perform better as future rental investments, attracting a broader tenant pool

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In other words, transport connectivity safeguards both today's liveability and tomorrow's rental demand.

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CBD vs Carlton vs Southbank vs South Melbourne: A Realistic Comparison

Melbourne CBD

The Melbourne CBD remains one of the most popular choices for international and Malaysian buyers — and for good reason:

• Direct access to universities, transport, retail, dining and amenities
• Strong rental demand from students and professionals
• Wide range of new, high-quality apartment projects
• Convenience for students living independently

While CBD apartments haven't always delivered the highest capital growth historically, Melbourne is currently experiencing a housing supply shortage, particularly for well-designed, larger, high-quality apartments. This supply-demand imbalance supports long-term value, especially for premium stock.

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Southbank

Southbank appeals to buyers looking for:

• Lifestyle-driven living
• River and skyline views
• Proximity to the CBD without being in the commercial core

It remains popular with both students and young professionals, making it a strong dual-purpose option.

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South Melbourne

South Melbourne is often recommended to international families who want:

• Close proximity to the CBD
• A more traditional suburb feel
• Lifestyle amenities, markets, cafes and open spaces

It's particularly well-suited to families buying a property that will serve both as a residence for children and as a long-term family asset.

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Carlton

Carlton is frequently requested because of its proximity to the University of Melbourne. However, in our experience, it can be a safe but limited choice.

The lifestyle offering isn't what it once was, and compared to the CBD, Carlton often provides:

• Fewer high-quality new developments
• Less long-term flexibility
• Lower appeal outside the student market

Proximity to a university alone is no longer enough.

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Why Project Quality Matters More Than Postcode

One of the most important insights for overseas and Malaysian buyers is this: the quality of the project matters more than the suburb.

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High-quality developments:

• Hold value better over time
• Appeal more strongly in the resale market
• Attract both tenants and owner-occupiers
• Stand out during periods of market oversupply

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When it comes time to sell, Malaysian owners are often selling to local Australian buyers. Australians focus heavily on:

• Apartment size and layout
• Build quality and finishes
• Natural light and liveability
• Facilities and long-term maintenance

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A well-designed apartment in the right building will always outperform an average apartment in a "good" suburb.

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FIRB Rules & Why Apartments Are the Reality for Foreign Buyers

Australia has strict regulations for foreign buyers. Malaysians purchasing property generally require FIRB (Foreign Investment Review Board) approval, which limits purchases to:

• Brand new properties
• Off-the-plan or newly completed developments

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This naturally means:

• Apartments are the most accessible property type
• Most purchases are new or near-new stock
• Developer reputation and delivery track record are critical

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For this reason, Malaysians place strong emphasis on:

• Reputable developers
• Quality fixtures and finishes
• Practical layouts
• Core amenities such as gyms, pools, security and concierge services

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Safe vs Smart: Understanding Risk in Melbourne Property

Melbourne is one of Australia's most stable property markets. Buyers don't need to be overly conservative to achieve security.

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While some choices may feel "safe," they can also limit:

• Lifestyle appeal
• Future buyer demand
• Long-term growth potential

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With housing supply unable to keep pace with demand, large, well-designed, high-quality apartments with a clear point of difference are increasingly future-proof.

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A Real Malaysian Family Case Study

One Malaysian family purchased a three-bedroom apartment in South Melbourne over 15 years ago while their children were studying in Australia.

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Since then:

• Multiple children have lived in the apartment at different stages
• Family members have used it whenever visiting Melbourne
• The property eliminated the need for hotels or short-term accommodation
• The lifestyle, beach proximity and views enhanced the family's overall experience

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It became more than an investment — it became a long-term family asset, benefiting multiple generations while retaining strong value.

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How Overseas Buyers Should Choose the Right Area in Melbourne

Instead of asking "What's the best area?", ask:

• Which universities need to be easily accessible?
• Is the property well-connected by transport?
• Is the building reputable and well-designed?
• Will the apartment appeal to future tenants and buyers?
• Does it offer lifestyle value beyond just proximity?

When these questions are answered properly, the "best area" becomes clear.

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Final Thoughts

Melbourne offers many excellent areas to live and invest in — but the right choice depends on your goals, your children's needs, and the quality of the asset you're buying.

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For Malaysian buyers, success comes from:

• Looking beyond distance alone
• Understanding transport and infrastructure
• Prioritising project quality
• Thinking long-term

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If you're unsure which area or project suits your situation, working with specialists who understand both the Malaysian buyer mindset and the Melbourne market can make all the difference.

Luxury apartments in Australia have evolved. Today, they are less about size or opulent finishes and more about how they make life easier, more convenient, and more enjoyable. True luxury supports wellbeing, safety, lifestyle, and intellectual growth — all in one of the world’s most liveable cities.

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At Tiga, we see a clear shift: buyers are seeking residences that combine premium design, lifestyle amenities, and strategic locations, allowing them to live effortlessly while enjoying Melbourne’s vibrant culture.

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Design That Supports Everyday Life

Modern luxury apartments focus on well-considered design and materiality. Spacious layouts, natural light, premium finishes, and thoughtful attention to detail create homes that feel both elegant and functional.

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For example, Sento by Holder East in Southbank incorporates Japanese-inspired minimalist design, maximising light and space while offering wellness-focused facilities like an urban onsen, a private sky garden, and a serene teahouse. These features make it easy for residents to prioritise health and relaxation without leaving home.

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Similarly, Park Modern combines premium parkfront living with extensive wellness amenities — magnesium pools, infrared saunas, and dedicated treatment rooms — ensuring that wellbeing is integrated seamlessly into daily life.

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Spaces To Enjoy Everyday

Luxury today is about convenience and choice. Spacious layouts, carefully designed interiors, and premium materials allow residents to showcase their style and belongings without clutter or compromise, whilst amenities such as private dining areas, lounges, and entertainment spaces enable social connection in style, turning everyday moments into memorable experiences.

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Safety, Security, and Peace of Mind

Peace of mind is essential. Secure access, concierge services, and well-designed layouts and integrated security systems ensure residents can live confidently and comfortably, whether at home or away.

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Location That Enriches Life

Proximity to education, cultural landmarks, and transport is a key part of modern luxury. Australia's top apartments place residents near universities, libraries, gardens, and the CBD, providing easy access to learning, leisure, and professional opportunities. These locations make it simple to balance work, study, and lifestyle — a combination increasingly valued by high-end buyers.

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Key Expert Takeaways

From our experience guiding buyers in Melbourne, Sydney, and other cities in Australia, the apartments that deliver consistently share these traits:

1. Wellness and lifestyle integration – Amenities that support exercise, relaxation, and healthy routines make daily life easier.
2. Convenience and connectivity – Proximity to transport, education, and cultural hubs enhances both lifestyle and investment potential.
3. Safety and privacy – Secure access, concierge services, and security features provide peace of mind.
4. Elevated everyday experiences – Homes that combine design, amenities, and location simplify routines while enhancing quality of life.

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Luxury is Effortless Living

Across Melbourne and Sydney, the unifying feature of these apartments is that they simplify and elevate everyday life. Luxury is no longer about extravagance alone; it’s about creating a home that supports health, convenience, security, and personal growth.

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At Tiga, we specialise in guiding buyers to these residences, providing insight and access to projects that deliver both a refined lifestyle and exceptional living experiences.

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1. What type of residential property can a foreign person buy in Australia?

The types of residential property that a foreign person can buy in Australia include:

• New dwelling: completed units built and developed by developer and has not been previously occupied.
• Off-the-plan property: dwellings that are under construction.
• Vacant residential land: land that has no substantive permanent building on it

Note: From 1 April 2025 to 31 March 2027, foreign persons are banned from purchasing established dwellings in Australia.

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2. Is there any governmental approval required when a foreign person purchases a residential property in Australia?

If you are a foreign person, you need to obtain the Foreign Investment Review Board (FIRB) approval from Australia Taxation Office (ATO) before purchasing a residential property. The ATO generally approve an application to purchase a residential property within the residential property a foreign person can buy in Australia as discussed in Question 1.

The FIRB application fee is as follow:

• Purchase price $1 million or less - $15,100
• Purchase price above $1 million but below $2 million - $30,300

Note: The FIRB fees increase on 1 July every year (start of financial year), lock in property before 30 June for submission.

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3. I am a temporary resident, am I a foreign person?

You are a foreign person if you are NOT:

• An Australian citizen
• An Australian permanent resident
• A New Zealand citizen

So yes, a temporary resident is a foreign person in the Australian foreign investment legislation.

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4. What is the land transfer duty rate (stamp duty) payable by a foreign person?

The local stamp duty rate payable is approximately 5% to 5.5% of the purchase price. Foreign purchasers pay an additional 8% stamp duty surcharge in addition to the local stamp duty rate.

Note: If your Australia PR is granted before settlement, the 8% stamp duty surcharge will be waived.

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5. Are there any stamp duty concession available for foreign purchasers?

Yes, the good news is that a new temporary off-the-plan stamp duty concession is available in Victoria for off-the-plan dwellings such as land and building packages, residential towers and low-rise apartments.  Our legal consultant will be able to advise how the concession works.

Note: Contract must be entered into on or after 21 October 2024 and before 20 October 2026.

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6. When is the deposit and the balance purchase price payable?

10% deposit is payable at signing of contract to the developer’s lawyers and will be held in the lawyers’ trust account until the property is completed and new titles are registered. The 90% balance purchase price is only payable at settlement i.e. when the property is completed. You can prepare funds and application for loan during this period.

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Get Connected With The Right People

Buying from overseas doesn’t need to be confusing — with the right team of lawyers, accountants and brokers, the process is smooth and stress-free.

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We can connect you with trusted professionals we work with every day. We have a network of professionals qualified to practise law in both Australia & Malaysia, who speak English, Malay, 中文, 廣東話.

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Want a list of our recommended contacts? Just get in contact with our team below and we can connect you with the right people.