Buying Guides

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.

Is Buying Off-The-Plan A Good Idea?

Investing in real estate is a big decision, and one avenue that has gained significant popularity in Australia is purchasing property "off-the-plan." This approach allows buyers to secure a property before its completion, often at a lower price than its market value upon completion. What are the key aspects of buying property off the plan in Australia, and what information do you need to make an informed decision?

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Benefits of Purchasing Off the Plan:

1. Potential For Capital Growth

Off-the-plan properties often appreciate in value during construction. Since you don't pay the full purchase price before settlement, you can benefit from low initial costs while your property grows in value. You can research the 5-year median price trends of your preferred suburbs on RealEstate.com.au.

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2. Stamp Duty Savings

In Victoria, buying off-the-plan can lead to significant stamp duty savings because the duty is typically calculated only on the land value before construction costs. More information about the concession can be found here.

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3. Brand New Features, Compliance and Warranties

Off-the-plan properties are built to current modern standards, offering the latest in energy efficiency, style, sustainability, and safety compliance. New properties also come with builder warranties, including a 7-year structural guarantee.

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4. Customisation Opportunities

Depending on the construction stage, developers may allow buyers to make minor customisations to the property, such as selecting finishes or layouts.

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5. Rental Demand & Yield‍

New developments attract high rental interest, especially in urban or developing areas with amenities. This can result in strong rental income and a competitive edge over older properties.

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Important Considerations

1. Research the Developer

Before committing to an off-the-plan purchase, research the developer's track record thoroughly. Examine their previous projects, financial stability, and market reputation to gauge their work quality and ability to complete projects on schedule.

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2. Understand the Contract

Off-the-plan contracts are typically more complex than standard property purchase agreements. Make sure you understand all terms and conditions, including the sunset clause (completion deadline) and potential property specification variations.

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3. Construction Timelines‍

Off-the-plan projects may face delays due to weather, supply chain disruptions, or labor shortages, which can extend the building's completion date.

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4. Finance‍

Economic and market changes may affect both the lender's and buyer's financial position and loan approval by settlement time. Since future circumstances are unpredictable, careful financial planning is essential.

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5. Legal Advice‍

Given the complexity of off-the-plan contracts, seeking legal advice before signing any agreements is crucial. An experienced property law solicitor can help protect your interests and navigate the terms effectively.

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Purchasing property off the plan in Australia can be an excellent investment strategy, offering financial benefits and the opportunity to own a modern, customised property. However, success requires careful consideration, thorough research, contract understanding, and professional guidance. By carefully weighing the benefits against the risks, you can make a rewarding real estate investment decision.

How Does Stamp Duty Work For Victorian Properties?

Stamp duty, also known as land transfer duty, is a tax imposed by the Victorian State Government on property purchases. The amount varies depending on factors such as the property's price, location, and the buyer's eligibility for exemptions or concessions (discounts). Here's a closer look at how stamp duty works:

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What Is Stamp Duty?

Stamp duty is calculated as a percentage of the property's purchase price or market value (whichever is higher). How much you pay depends on:

• The value of the property • Whether you're an owner-occupier or an investor
• If you’re a foreign purchaser (which incurs an additional surcharge)
• Eligibility for exemptions or concessions

The State Revenue Office (SRO) provides a land transfer duty calculator to estimate how much you’ll need to pay based on your circumstances. ‍

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Concessions and Exemptions

A variety of land transfer duty exemptions and concessions (discounts) are available, including for off-the-plan purchases, deceased estates, spousal transfers, young farmers, and properties in regional or corporate contexts. Special provisions exist for first-home buyers, pensioners, and those with disabilities. Eligibility depends on the property's purpose and timing of contracts. Discuss options with a conveyancer before settlement and complete all forms to ensure accurate calculations. Learn more here. ‍

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When Is Stamp Duty Paid?

Stamp duty must be paid within 30 days of settlement. Failure to do so can result in penalties or interest charges. The amount is typically collected by your conveyancer or solicitor as part of the settlement process and paid directly to the State Revenue Office of Victoria.

Stamp duty is one of the biggest upfront costs when purchasing a property, so understanding how it applies to your situation is important. For an accurate estimate of what you may need to pay, it is best to speak with a conveyancer, or use the SRO's calculator as mentioned above.

A Guide for Foreign Investors

Investing in Australian real estate is an attractive opportunity for many foreign investors. With a strong property market, economic stability, and high rental demand, Melbourne especially offers excellent potential for international buyers. However, there are specific rules, approvals, and fees that non-residents must navigate before purchasing property. In this guide, we break down everything you need to know about buying real estate in Australia as a foreign investor.

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Can Foreigners Buy Property in Australia?

Yes, foreigners can buy property in Australia, but there are restrictions on the types of properties they can purchase. The Australian Government encourages foreign investment in new developments rather than existing properties to support housing supply. As a result, non-residents are typically limited to purchasing:

• Newly built properties
• Vacant land for development
• Established properties only if redeveloped to increase housing stock

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Foreign Investment Review Board (FIRB) Approval

Foreign investors must obtain approval from the Foreign Investment Review Board (FIRB) before purchasing property. The FIRB is responsible for regulating foreign investments and ensuring they benefit the Australian housing market.

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Key Points About FIRB Approval:

• Required for all non-residents unless purchasing with an Australian citizen, permanent resident, or New Zealand citizen.
• Application fees apply and vary based on the property’s value, starting at $4,300 for properties under $75,000 and increasing to $1,171,600 for properties over $40 million.
• The approval process can take up to 30 days.
• Severe penalties apply for non-compliance, including fines up to AUD $157,500 and potential imprisonment.

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What Properties Can Foreign Investors Buy?

New Dwellings

A new dwelling is defined as a home that:

• Has not been previously sold or occupied
• Has been purchased directly from a developer
• Is part of a larger new development

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Vacant Land

Non-residents can buy vacant land, but they must begin construction within four years and provide proof of completion within 30 days of finishing the build.

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Established Properties (Redevelopment Only)

Foreign investors may only purchase established properties if they intend to redevelop the site, increasing housing stock. For example:

• A single dwelling must be demolished and replaced with two or more dwellings
• The existing property must remain vacant during redevelopment
• Redevelopment must be completed within four years

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Additional Costs & Taxes for Foreign Buyers

Annual Vacancy Charge

Foreign buyers who do not occupy or rent out their property for at least six months per year must pay an annual vacancy charge, determined by the Australian Taxation Office (ATO)

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Foreign Buyer Stamp Duty

In addition to standard purchase costs, foreign buyers must pay an additional stamp duty surcharge, which varies by state. For example:

• New South Wales (NSW): 8% surcharge
• Victoria (VIC): 8% surcharge
• Queensland (QLD): 7% surcharge

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Capital Gains Tax (CGT) & Income Tax

• Rental income from an Australian property must be declared in an Australian tax return
• Non-residents may be subject to capital gains tax (CGT) when selling the property if its value has increased

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Financing

Foreign buyers need non-resident home loan approval, as lenders assess foreign income differently. Key considerations include:

• Lenders may only accept 50-100% of foreign income, depending on currency and stability
• Most lenders require at least a 30% deposit from foreign buyers
• Interest rates for foreign investors may be higher than standard rates
• All income documents must be translated into English by a certified translator

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Need Assistance?

We can connect you with trusted Australian property specialists for a free consultation. Our network of experts can provide tailored advice on financing, FIRB applications, and investment strategies to help you successfully purchase property in Australia.

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Get in touch today to start your Australian property investment journey!

How to Build Equity in the Melbourne Real Estate Market

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.

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What Is Equity?

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.

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Ways to Build Equity in Melbourne's Property Market

1. Buy in a High-Growth Suburb

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:

• New and major infrastructure projects, particularly public transport
• Historical price trends and rental demand
• Choose locations with low vacancy rates and high tenant demand

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2. Make Smart Renovations

Strategic renovations can boost your home's value and equity. Focus on:

• Kitchen & Bathroom Upgrades – Modernizing these areas yields the highest returns
• Adding an Extra Bedroom or Living Space – More space equals higher value
• Street Appeal Enhancements – First impressions count! A fresh coat of paint, landscaping, and new fixtures make a difference

Tip: Focus on cost-effective renovations with high returns. Avoid overcapitalising—where improvements cost more than the value they add.

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3. Pay Down Your Mortgage Faster

The less you owe, the more equity you build. Consider:

• Making Extra Repayments – Even small additional payments can reduce your loan term by years
• Switching to a Lower Interest Rate – Refinancing to a better rate helps you pay off your loan sooner
• Offset & Redraw Accounts – These features reduce interest and accelerate loan repayment

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4. Subdivide or Develop

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:

• Check local council zoning regulations
• Assess development costs vs. potential profits
• Work with town planners and real estate experts

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5. Wait for Capital Growth

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.

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How to Use Your Equity

Once you've built equity, you can:

• Use it as a deposit for another property. Many investors use equity to expand their portfolio.
• Refinance for a better home loan as higher equity often secures lower interest rates.
• Fund renovations or improvements, further increasing your property's value.

Through smart location choices, strategic upgrades, accelerated mortgage repayment, and potential development, you can build equity faster and create lasting financial success.