Buying an Apartment on a Tram or Train Line in Melbourne – Smart Move or Costly Mistake

Buying an apartment right on a tram or train line is one of those decisions that can be either very smart or quietly painful, depending on how far you think it through.

At first glance, transport access looks like a no brainer. Agents love it. Tenants search for it. Buyers talk about it like it is a guarantee of growth. The reality is more nuanced.

Why people are drawn to it

Apartments close to the Melbourne tram network or Metro Trains Melbourne attract strong tenant demand, particularly from renters who do not own a car, students, city workers, and downsizers.

Vacancy rates are usually lower, and leasing periods are shorter. From an investment point of view, that consistency matters more than chasing a headline rent.

Transport access also future proofs demand. Even when the market softens, people still need to get to work, university, hospitals, and shopping strips.

The downside buyers often miss

Noise is the obvious one, but vibration is the bigger issue. Trams are fairly predictable. Trains are not. Apartments that sit directly above or beside rail lines can experience low level vibration that does not show up in a quick inspection but becomes very noticeable at night.

Resale can also be harder than expected. While there will always be buyers who want transport access, there is a smaller pool of buyers willing to live directly on the line rather than near it. That can cap price growth compared to similar apartments one or two streets back.

Another issue is future infrastructure. Rail corridors get upgraded. Tram stops move. Overhead wiring changes. None of this helps if your bedroom window is already right on the track.

What usually works best

The sweet spot is close, but not on top of it.

Within a five to seven minute walk of a station or tram stop often delivers most of the benefit without the drawbacks. You still get tenant demand and buyer appeal, but with better liveability and resale flexibility.

If the apartment is directly on the line, the building itself matters more than the postcode. Solid construction, good glazing, proper acoustic treatment, and sensible bedroom placement can make or break the decision.

Strata and disclosure checks are critical

Apartments near transport corridors often come with higher maintenance issues. Vibration damage, cracking, and noise complaints can all appear in owners corporation records.

Before committing, you should be checking the owners corporation certificate carefully for noise related disputes, building defects, and special levies. These issues rarely improve with time.

The bottom line

Buying near public transport is generally a positive. Buying directly on a tram or train line is a trade off.

For investors, it can work if the numbers stack up and the building quality is right. For owner occupiers, it comes down to tolerance and lifestyle. What feels fine at 11 am on a Saturday can feel very different at 5 am on a weekday.

If you are weighing up an apartment like this, it is worth having the contract and owners corporation material reviewed properly before you commit. That is where most of the real risks hide.

If you want us to look over a specific apartment or contract, you can request a review here
https://www.victorianpropertysettlements.com.au/contract-review-request