The smallest of Australia's mainland states also happens to be the most densely populated – Victoria is considered the country's most important financial and commercial centre. Melbourne is of course the first place that comes to mind when considering investing in property within the region, where an average 4.5 per cent increase in property values in 2014 once again caught the eye of investors. In terms of rent yields for buy-to-let investors, it's a bit of a mixed bag on the whole where smaller properties in key areas can bring in 5 per cent or higher, while larger properties tend to hover more around the 2.5 per cent mark.