This data has been sourced from the REIA Market Facts Publication.  The inner city includes those suburbs within a 5km radius of the GPO.  The middle-ring relates to those suburbs between 5km and 20km from the CBD, whilst the outer suburbs covers that area within a capital city metropolitan area beyond 20km from the CBD.

The first surprise is that over the longer term detached housing resells for similar annual gains regardless of general location (i.e. inner city versus the middle-ring or outer suburbs),

Secondly, despite the common belief that “inner is always better”, the Middle Ring Suburbs (here defined as 5km-20km out whereas Melbourne agents use 10km -20km) show a slightly better long term cap gains. whilst requiring a lot less in investment funds, i.e. <$1M, c.f. $1.5M.

An analysis of Strategic Buyers Agents’ buying in Melbourne for over the years shows most buying for investors was in the Middle Ring, with buying for home- buyers more likely in the Inner City, using the conventional 10 km radius from the CBD..