Melbourne homebuyers missing out on super hack
A growing number of young Melbourne homebuyers are using a little-known super hack to beat the property market — but hundreds of thousands of others are still missing out.
Finder analysis of SuperRatings data has revealed that in 190 Melbourne suburbs, house prices failed to keep pace with the average 5.7 per cent annual return delivered by top-performing superannuation funds over the past decade.
That means savvy buyers who contributed voluntarily into super rather than racing into the property market in those suburbs could have ended up ahead, growing a deposit faster than prices climbed.
These suburbs include a mix of prestige pockets such as Docklands, Carlton, Parkville and St Kilda West, as well as outer-fringe areas like Cranbourne South, where growth has lagged super returns.
In contrast, more than 100 other suburbs, particularly in Melbourne's booming outer west and north, outpaced super fund performance.
Despite the clear financial benefits, the First Home Super Saver Scheme (FHSSS), which allows Australians to grow a deposit inside super, remains significantly underused.
According to the latest Australian Taxation Office data, just 27,000 Australians have accessed the scheme since it began, withdrawing a combined $370m in voluntary contributions.
Yet nearly half of those — 16,500 — were Victorian buyers, indicating strong uptake in the state.
However, Australian Bureau of Statistics figures show there were more than 231,000 new loans issued to first-home buyers in Victoria between the 2018 and 2024 financial years, suggesting almost 93 per cent of eligible buyers never used the scheme.
Super Members Council chief executive Misha Schubert said younger Australians should not have to choose between homeownership and a secure retirement.
'They deserve the same opportunities as previous generations to have both a home and strong retirement savings,' Ms Schubert said.
'As a result of Super Guarantee rate rises from 9 to 12 per cent over the past decade, the average 30-year-old today will be more than $130,000 better off in retirement.
'That's why protecting the core of super is so important.'
Under the scheme, eligible first-home buyers can contribute up to $15,000 per year and a total of $50,000 in voluntary super contributions — which can later be withdrawn to use as a house deposit.
The strategy is particularly appealing for disciplined savers, as it takes advantage of concessional tax treatment and compound growth within a super fund. Experts say it could be a powerful way to close the deposit gap for many young Australians locked out of their preferred suburbs.
Smart Lending managing director Melissa Gielnik said the scheme remained an under-utilised financial tool, especially for buyers in their 20s and 30s.
'In a lot of cases, the First Home Super Saver Scheme can deliver a better outcome than a standard savings account or term deposit, and it's a huge help in a rising market,' Ms Gielnik said.
OpenCorp chief executive Cam McLellan said while super performance had been solid, property still offered unique advantages that couldn't be overlooked.
'Super returns sound solid, but property has a massive advantage with leverage,' Mr McLellan said.
'With a 20 per cent deposit, you control the full value of the asset, and that means better real-world outcomes — especially when you factor in rental income and tax benefits.'
Mr McLellan said successful investors often used a blend of both strategies, depending on their income and long-term goals.
'Some reduce their super contributions while building a property portfolio,' he said.
'Others use a self-managed super fund to buy property inside super. The smart ones use both.'
M R Advocacy director Madeleine Roberts said more younger buyers were also turning to rentvesting — renting in their preferred lifestyle locations while investing in more affordable growth suburbs.
'They're realising it's a smart way to get ahead without giving up lifestyle,' Ms Roberts said.
'We're seeing savvy buyers take a strategic approach.
'They're arming themselves with the right information and using it to their advantage.'
She said that while super could be a useful long-term growth tool, the right property purchase in the right location had the potential to outperform in real dollar terms, particularly when timed well.
'Smart property decisions can absolutely beat super, even in the short term,' Ms Roberts said.
'But it all comes down to timing and knowing where to buy.
'Sometimes the best move is to buy, wait for it to mature in value, and then reinvest somewhere else.'
With Melbourne's housing market showing signs of recovery after a turbulent few years, experts say the combination of rising super balances, accessible government schemes, and flexible strategies like rentvesting could redefine the first-home buyer experience.
It helps close the affordability gap for a generation of buyers priced out of the traditional path to homeownership.
Ms Schubert said one of the scheme's biggest strengths was that it didn't require buyers to compromise their long-term financial wellbeing.
'It doesn't damage the safe deposit box that protects their employer super contributions, which they will need to deliver regular income to live on in retirement,' she said.
'It's a win-win, and we'd love to see more young Australians taking advantage of it.'
Additional reporting by Nathan Mawby
Disclaimer: OpenCorp does not provide financial advice about SMSFs or superannuation. Always consult a licensed financial adviser before making decisions regarding your super or establishing an SMSF.
Melbourne suburbs where super outperformed houses
Suburb Property Type 10-Year Property Return %
Docklands H -1
Parkville H -0.3
Cranbourne South H 0.2
Werribee South H 0.3
Nar Nar Goon North H 0.9
Middle Park H 1.2
Carlton H 1.3
St Kilda West H 1.6
Toorak H 2.4
Armadale H 2.4
South Melbourne H 2.5
Williamstown North H 2.5
Glen Huntly H 2.6
Flemington H 2.6
Fitzroy North H 2.7
Box Hill H 2.8
Richmond H 2.8
Malvern East H 2.9
Cremorne H 2.9
Ashburton H 3
Prahran H 3
Elsternwick H 3.1
Princes Hill H 3.1
Mont Albert H 3.2
South Yarra H 3.2
St Kilda H 3.2
Bulleen H 3.2
Kew H 3.3
Mont Albert North H 3.3
Balaclava H 3.3
Windsor H 3.3
West Footscray H 3.3
Heidelberg Heights H 3.3
Caulfield North H 3.4
Caulfield South H 3.4
Doncaster H 3.4
Brooklyn H 3.4
Ripponlea H 3.5
Port Melbourne H 3.5
Maidstone H 3.5
Box Hill South H 3.6
Chadstone H 3.6
Maribyrnong H 3.6
Balwyn North H 3.7
Oakleigh East H 3.7
Collingwood H 3.7
Kensington H 3.7
Camberwell H 3.8
Glen Iris H 3.8
St Kilda East H 3.8
Belgrave South H 3.8
Seddon H 3.8
Footscray H 3.8
McKinnon H 3.9
Alphington H 3.9
Box Hill North H 3.9
Heidelberg H 3.9
Oakleigh H 3.9
Essendon North H 3.9
Heatherton H 3.9
Mount Dandenong H 3.9
Elwood H 4
Ivanhoe H 4
Fitzroy H 4
West Melbourne H 4
Balwyn H 4.1
Hawthorn East H 4.1
Surrey Hills H 4.1
Albert Park H 4.1
Templestowe H 4.1
Templestowe Lower H 4.1
Braybrook H 4.1
Bentleigh H 4.2
Mount Waverley H 4.2
Blackburn H 4.2
Williamstown H 4.2
Clifton Hill H 4.2
Burwood H 4.2
Ashwood H 4.2
Ascot Vale H 4.2
Forest Hill H 4.2
Yarraville H 4.2
Watsonia North H 4.2
Bundoora H 4.2
Springvale H 4.2
Brighton East H 4.3
Glen Waverley H 4.3
Burwood East H 4.3
Moorabbin H 4.3
Heathmont H 4.3
Knoxfield H 4.3
Keilor Park H 4.3
Warrandyte H 4.4
North Melbourne H 4.4
Blackburn North H 4.4
Abbotsford H 4.4
Viewbank H 4.4
Nunawading H 4.4
Pascoe Vale H 4.4
Croydon North H 4.4
Attwood H 4.4
Westmeadows H 4.4
Malvern H 4.5
Ormond H 4.5
Moonee Ponds H 4.5
Hughesdale H 4.5
Mitcham H 4.5
Huntingdale H 4.5
Bonbeach H 4.5
Ringwood H 4.5
Airport West H 4.5
Bayswater H 4.5
Caulfield H 4.6
Murrumbeena H 4.6
Ringwood East H 4.6
Altona North H 4.6
Avonsleigh H 4.6
Canterbury H 4.7
Brighton H 4.7
Kew East H 4.7
Carnegie H 4.7
Blackburn South H 4.7
Mentone H 4.7
Brunswick West H 4.7
Brunswick H 4.7
Macleod H 4.7
Kingsbury H 4.7
Eaglemont H 4.8
Ivanhoe East H 4.8
Sandringham H 4.8
Carlton North H 4.8
Donvale H 4.8
Hampton East H 4.8
Wheelers Hill H 4.8
Thornbury H 4.8
Coburg H 4.8
Rowville H 4.8
Bellfield H 4.8
Scoresby H 4.8
Gowanbrae H 4.8
New Gisborne H 4.8
Sunshine H 4.8
Brookfield H 4.8
Vermont H 4.9
Wantirna H 4.9
Clarinda H 4.9
Clayton South H 4.9
Sassafras H 4.9
Reservoir H 4.9
Croydon South H 4.9
Greenvale H 4.9
Boronia H 4.9
Caroline Springs H 4.9
Fairfield H 5
Brunswick East H 5
Newport H 5
Cheltenham H 5
Patterson Lakes H 5
Oakleigh South H 5
Yallambie H 5
Coburg North H 5
Wattle Glen H 5
Cairnlea H 5
The Basin H 5
Springvale South H 5
Glenroy H 5
Fawkner H 5
Broadmeadows H 5
Hampton H 5.1
Niddrie H 5.1
Clayton H 5.1
Seaholme H 5.1
South Kingsville H 5.1
Oak Park H 5.1
Keilor East H 5.1
Ferntree Gully H 5.1
Selby H 5.1
Eumemmerring H 5.1
Laverton H 5.1
Bentleigh East H 5.2
Parkdale H 5.2
Vermont South H 5.2
Mordialloc H 5.2
Ringwood North H 5.2
Preston H 5.2
Mulgrave H 5.2
Strathmore Heights H 5.2
Briar Hill H 5.2
Avondale Heights H 5.2
Croydon H 5.2
Hadfield H 5.2
Sunshine North H 5.2
Deepdene H 5.3
East Melbourne H 5.3
Black Rock H 5.3
Beaumaris H 5.3
Northcote H 5.3
Doncaster East H 5.3
Highett H 5.3
Rosanna H 5.3
Pascoe Vale South H 5.3
Greensborough H 5.3
Watsonia H 5.3
Taylors Hill H 5.3
Kalorama H 5.3
Noble Park H 5.3
Burnside Heights H 5.3
Roxburgh Park H 5.3
Tarneit H 5.3
Chelsea H 5.4
Carrum H 5.4
Albion H 5.4
Dandenong H 5.4
Altona Meadows H 5.4
Hawthorn H 5.5
Essendon H 5.5
Eltham North H 5.5
Botanic Ridge H 5.5
Chirnside Park H 5.5
Lilydale H 5.5
Mooroolbark H 5.5
Lynbrook H 5.5
Sunshine West H 5.5
Wallan H 5.5
Bacchus Marsh H 5.5
Plenty H 5.6
Kingsville H 5.6
Eltham H 5.6
Notting Hill H 5.6
Montmorency H 5.6
Upper Ferntree Gully H 5.6
Epping H 5.6
St Albans H 5.6
Melbourne suburbs where houses outperformed super
Suburb Property Type 10-Year Property Return %
Cobblebank H 14.6
Aintree H 14
Mickleham H 13.5
Weir Views H 12.6
Portsea H 11.3
Red Hill H 11.3
Wesburn H 10.7
Fraser Rise H 10.7
Bittern H 10.1
Cannons Creek H 10.1
St Andrews Beach H 9.7
Diggers Rest H 9.3
Kinglake H 9.2
Cape Schanck H 9.1
Harkaway H 9
Wandong H 8.8
Lang Lang H 8.8
Officer H 8.6
Mount Macedon H 8.3
Melton South H 8.3
Sorrento H 8.2
Pakenham Upper H 8.2
Balnarring H 8.2
Yarrambat H 8.1
Blairgowrie H 8.1
Frankston North H 8.1
Millgrove H 8.1
Safety Beach H 8
Nyora H 8
Baxter H 8
Cranbourne West H 8
Rockbank H 8
McCrae H 7.9
Kinglake West H 7.9
East Warburton H 7.9
Fingal H 7.8
Crib Point H 7.8
Belgrave Heights H 7.7
Gembrook H 7.7
Tyabb H 7.6
Launching Place H 7.6
Clyde North H 7.6
Junction Village H 7.6
Essendon West H 7.5
Somerville H 7.5
Mount Martha H 7.4
Frankston South H 7.4
Carrum Downs H 7.4
Devon Meadows H 7.3
Narre Warren North H 7.2
Seville East H 7.2
Warburton H 7.2
Gruyere H 7.1
North Warrandyte H 7.1
Hurstbridge H 7.1
Rye H 7.1
Tootgarook H 7.1
Melton H 7.1
Balnarring Beach H 7
Mount Eliza H 7
Diamond Creek H 7
Keilor Lodge H 7
Burnside H 7
Cranbourne North H 7
Beaconsfield Upper H 6.9
Warranwood H 6.9
Langwarrin H 6.9
Garfield H 6.9
Edithvale H 6.8
Ferny Creek H 6.8
Dromana H 6.8
Romsey H 6.8
Eynesbury H 6.8
Yarra Junction H 6.8
Hampton Park H 6.8
Cranbourne H 6.8
Werribee H 6.8
Kurunjang H 6.8
Frankston H 6.7
Capel Sound H 6.7
Woori Yallock H 6.7
Hastings H 6.7
Maddingley H 6.7
Wyndham Vale H 6.7
Coolaroo H 6.7
Lower Plenty H 6.6
Kilsyth South H 6.6
Macedon H 6.6
Keysborough H 6.6
Seville H 6.6
Rosebud H 6.6
Wollert H 6.6
Koo Wee Rup H 6.6
Research H 6.5
Lysterfield H 6.5
Aspendale Gardens H 6.5
Emerald H 6.5
Wandin North H 6.5
Mount Evelyn H 6.5
Coldstream H 6.5
Healesville H 6.5
Skye H 6.5
Narre Warren H 6.5
Sunbury H 6.5
Doveton H 6.5
Strathmore H 6.4
Wonga Park H 6.4
Keilor H 6.4
Sandhurst H 6.4
Gisborne H 6.4
Williams Landing H 6.4
Belgrave H 6.4
Albanvale H 6.4
St Helena H 6.3
Pearcedale H 6.3
Montrose H 6.3
Heathcote Junction H 6.3
Mill Park H 6.3
Hallam H 6.3
Blind Bight H 6.3
Pakenham H 6.3
Kings Park H 6.3
Dallas H 6.3
Melton West H 6.3
Aberfeldie H 6.2
Mornington H 6.2
Lyndhurst H 6.2
Narre Warren South H 6.2
Keilor Downs H 6.2
Mernda H 6.2
Hoppers Crossing H 6.2
Meadow Heights H 6.2
Longwarry H 6.2
Lysterfield South H 6.1
Altona H 6.1
Dingley Village H 6.1
Olinda H 6.1
Beaconsfield H 6.1
Taylors Lakes H 6.1
Yarra Glen H 6.1
Berwick H 6.1
Doreen H 6.1
Clyde H 6.1
Deer Park H 6.1
Truganina H 6.1
Badger Creek H 6.1
Somers H 6
Spotswood H 6
Tecoma H 6
Monbulk H 6
Seaford H 6
Hillside H 6
Noble Park North H 6
Seabrook H 6
Delahey H 6
Ardeer H 6
Darley H 6
Kallista H 5.9
Chelsea Heights H 5.9
Bayswater North H 5.9
Endeavour Hills H 5.9
Bunyip H 5.9
Thomastown H 5.9
Craigieburn H 5.9
Croydon Hills H 5.8
Riddells Creek H 5.8
Silvan H 5.8
Heidelberg West H 5.8
Dandenong North H 5.8
Gladstone Park H 5.8
Tullamarine H 5.8
Cranbourne East H 5.8
Lalor H 5.8
Campbellfield H 5.8
Park Orchards H 5.7
Waterways H 5.7
Aspendale H 5.7
Wantirna South H 5.7
Upwey H 5.7
Kilsyth H 5.7
Point Cook H 5.7
South Morang H 5.7
Lancefield H 5.7
Whittlesea H 5.7
Kealba H 5.7
Sydenham H 5.7
Beveridge H 5.7
Manor Lakes H 5.7
Jacana H 5.7
Harkness H 5.7
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