Building equity in your property is one of the smartest ways to grow wealth through real estate. Whether you're a homeowner or investor, increasing your property's equity opens doors to refinancing, leveraging future investments, or boosting your overall financial position.
But how exactly do you build equity in Melbourne's dynamic property market? Here's what you need to know.
Equity is the difference between your property's market value and your remaining mortgage. For example, if your home is worth $800,000 and your loan balance is $500,000, your equity is $300,000.
The more equity you have, the greater your financial flexibility—whether for buying another property, funding renovations, or securing better loan terms.
Melbourne's property market is shaped by supply, demand, and infrastructure development. Buying in an area with strong growth potential can significantly increase your property's value over time.
Some contributing factors of high-growth suburbs:
Strategic renovations can boost your home's value and equity. Focus on:
Tip: Focus on cost-effective renovations with high returns. Avoid overcapitalising—where improvements cost more than the value they add.
The less you owe, the more equity you build. Consider:
If you own a large block in Melbourne, you might be able to subdivide and sell part of your land or develop townhouses to increase property value. This strategy works best in growth zones or areas with flexible zoning laws.
Key considerations:
Sometimes, the best strategy is time. Melbourne's history shows strong long-term capital growth, with property values typically rising over 10–15 years. Holding a well-located property through market cycles often leads to substantial equity gains.
Once you've built equity, you can:
Through smart location choices, strategic upgrades, accelerated mortgage repayment, and potential development, you can build equity faster and create lasting financial success.
Discover the best Melbourne areas for international property buyers. Expert guide covering CBD, Southbank, Carlton & South Melbourne for students & investors.
One of the most common questions we hear from overseas buyers is: "Which area is the best to live in Melbourne?"
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.
But after years of working with Malaysian families and investors, here's what we've learned:
There is no single "best" area in Melbourne.
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.
When international buyesr ask about the "best" area, they're usually concerned about:
These are all sensible priorities. The mistake many buyers make, however, is assuming that closer automatically means better — particularly when it comes to universities.
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.
With major infrastructure upgrades, including the Melbourne Metro Tunnel, students can now reach universities quickly and easily from a much wider range of locations.
What this means in practice:
In other words, transport connectivity safeguards both today's liveability and tomorrow's rental demand.
The Melbourne CBD remains one of the most popular choices for international and Malaysian buyers — and for good reason:
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.
Southbank appeals to buyers looking for:
It remains popular with both students and young professionals, making it a strong dual-purpose option.
South Melbourne is often recommended to international families who want:
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.
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:
Proximity to a university alone is no longer enough.
One of the most important insights for overseas and Malaysian buyers is this: the quality of the project matters more than the suburb.
High-quality developments:
When it comes time to sell, Malaysian owners are often selling to local Australian buyers. Australians focus heavily on:
A well-designed apartment in the right building will always outperform an average apartment in a "good" suburb.
Australia has strict regulations for foreign buyers. Malaysians purchasing property generally require FIRB (Foreign Investment Review Board) approval, which limits purchases to:
This naturally means:
For this reason, Malaysians place strong emphasis on:
Melbourne is one of Australia's most stable property markets. Buyers don't need to be overly conservative to achieve security.
While some choices may feel "safe," they can also limit:
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.
One Malaysian family purchased a three-bedroom apartment in South Melbourne over 15 years ago while their children were studying in Australia.
Since then:
It became more than an investment — it became a long-term family asset, benefiting multiple generations while retaining strong value.
Instead of asking "What's the best area?", ask:
When these questions are answered properly, the "best area" becomes clear.
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.
For Malaysian buyers, success comes from:
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.
Discover what defines true luxury living in Australia today — from wellness-focused design and seamless convenience to safety, education, and lifestyle amenities. Learn how modern apartments by leading developers are redefining effortless, high-end living with expert insights from our team.
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.
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.
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.
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.
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.
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.
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.
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.
From our experience guiding buyers in Melbourne, Sydney, and other cities in Australia, the apartments that deliver consistently share these traits:
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.
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.
We asked one of our trusted property lawyers the top 6 questions foreign buyers are asking right now — here’s what you need to know.
The types of residential property that a foreign person can buy in Australia include:
Note: From 1 April 2025 to 31 March 2027, foreign persons are banned from purchasing established dwellings 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:
Note: The FIRB fees increase on 1 July every year (start of financial year), lock in property before 30 June for submission.
You are a foreign person if you are NOT:
So yes, a temporary resident is a foreign person in the Australian foreign investment legislation.
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.
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.
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.
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.
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.
Want a list of our recommended contacts? Just get in contact with our team below and we can connect you with the right people.
