To find expanding communities, Melbourne is where you should be seeking. There has been an uptick in consumer trust in the Melbourne real estate market, and experts anticipate an 8-12% increase in Victoria's economy by the end of 2021.
In light of the large government stimulus, record-low interest rates, and rising investment value, now appears to be an excellent time to enter the real estate market.
Investment in regional locations within reasonable commute from Melbourne CBD has gained traction as a work-from-home trend continues to sweep the State and people seek to avoid return to the hectic city lifestyle.
Growth suburbs in Melbourne, as you might assume given the present regional real estate market bubble in Australia, are typically located outside of the central business district. But there are outlying communities that have defied the odds.
So, which Melbourne neighbourhoods provide the best return on investment? We've selected the finest neighbourhoods and put them on a single list.
We made no attempt to rank these suburbs in any way, and we're well aware that there are likely many more excellent options for real estate investment that we simply didn't think to mention.
FAQs About Melbourne Property
Looking back, the Melbourne property market has been one of the strongest and most consistent performers over the last four decades and the last 40 years: The median Melbourne house has increased by 7.9% per annum. The median Melbourne unit/apartment price has increased by 7.73%per annum.
- Caroline Springs.
- St Helena.
- Melton South.
- Bentleigh and East Bentleigh.
Prices in Sydney and Melbourne will likely fall by 1.5 per cent a month through the rest of 2022. But the national drop could be even larger, at 20 per cent by the end of 2024, depending on how people respond to both the fall in prices and to even higher interest rates.
January 5: Prices Fall 4.25% Since March 2022 Peak
According to the latest PropTrack Home Price Index, national home prices have seen nine straight months of price declines, falling 4.25% below the peak from March 2022.
Melbourne's Best Investing Suburbs
With an average sale of $892,500, Tyabb is the greatest suburb in Melbourne for investors.
Tyabb, situated fifty-five miles south of the CBD just on Mornington Peninsula, has seen a 47% increase in median sale price year over year, and rental yields of 3.98% annually.
Collingwood, an eccentric inner-city suburb that comes after Tyabb, is next. The median listing price for a home in Collingwood is $1,140,000. The rental income is 3.40 percent, and the price per square foot has increased by 30 percent over the past year.
Hughesdale, 15 km south-east of Melbourne's central business district, is the city's third-best investment suburb.
The median home price in Derrimut is $1,362,000, making it the fifth most expensive suburb in which to sell a property.
The average sale price in Hughesdale increased by 28% year over year, and the rental yield was 2.46 percent.
Box Hill South
Following this is Box Hill South, which is located 15 km east of a CBD. The median annual house price in Box Hill South is $1,281,444, up 28% from the previous year. A positive yield of 2.38 percent is generated from rent.
Kensington, located only 4 km north-west of the City, is much closer.
The average sale price in Kensington is $1,121,000, representing a change of 25%% from the previous median sale of $900,000. As of right now, the yield on rent is 3.03%. Kensington is only 4 kilometres from the heart of the city.
The city you'll reach next is Heidelberg, which is located 13 km north-east of the City. The median sale price in Heidelberg is $1,269,900, with a yearly increase or decrease of 23%.
In addition, Heidelberg's rental yield of 2.58% ranks in the top ten.
Aberfeldie, in the north-west, is only 9 kilometres from the centre of the city, right on the banks of a Maribyrnong River.
The median sales price is a hefty $1,657,500, up 23% from the previous year. With a rental yield of 2.30 percent, it falls just short of Heidelberg in terms of attractiveness.
Murrumbeena, located to Melbourne's south-east, ranks eighth in rental yield at 2.51%.
Here, the median sale is $1,410,500, up 22.0% from the previous year.
When looking at Melbourne as a whole, Park Orchards ranks as the city's ninth-best neighbourhood in which to make a financial investment.
The median sales price for a given year is $1,835,000, up 22% from the previous year. In this case, the yield from rents is a very healthy 2.86%.
Mont Albert North
The eastern suburb of Mont Albert North, about 14 kilometres from Melbourne's central business district, rounds out the top ten best places to put your money in Melbourne.
In the past year, this same median sale price has increased by a notable 21% to $1525,000.
Not only that, but the average yield on rent is 2.22 percent. Among the top 10, Mont Albert North has the second-highest rental yield and the second-largest percentage increase in median sale price.
Officer, a tranquil and rapidly growing suburb of Melbourne, can be found in the city's south-east. The median property price in Officer is $593,000*, and the rental return is 3.5%; this is because the area is close to railway stations, the Princes Freeway, and some of the best schools in Melbourne.
One of the most sought-after master-planned communities in all of Satterley can be found in The Officer: Arcadia. This fascinating property successfully incorporates both rural and urban elements.
Arcadia is a great choice with competitive invested capital due to its proximity to a future town centre, 2 adjacent train stations, and three brand spanking new schools.
The town of Officer, located to the south-east of Melbourne, strikes a nice balance between rural and urban settings.
Melton is ascending in Melbourne's real estate market by remaining in the western part of the city while shifting slightly to the north.
The median home price in the area is $390,00*, and its economy has grown faster than any other in Victoria over the past decade.
As a result, Melton has seen a surge in interest from new homeowners.
Located only 45 kilometres from the heart of Melbourne, it provides easy access to the city and the rest of the state via the Colored ”, Western, Calder, Hume Freeways, and Princes, among others.
Melton's long-term value is substantial for a number of reasons, including the city's expected population increase of 40% within the next 40 years.
Mickleham is a rapidly expanding, highly desirable neighbourhood that consistently ranks high on the wish lists of both prospective homebuyers and real estate developers.
The suburb is perfect for young families because of its low median home value of $587,000* and a high rental return of around 3.87%.
About a ten-minute drive from Mickleham is Craigieburn, where you'll find a plethora of services and conveniences, including malls, sports centres, schools, and restaurants.
With a projected annual rate of growth of 28.92%, Mickleham's population, which was just more than 4000 in 2017, is expected to soar to over 51,568 by the year 2026.
Chatterley's Botanical estate is in Mickleham, which is 29 kilometres from the central business district and can be reached by car via the Tullamarine Thruway or by train via the nearby Bench clearing brawl Railway Station.
One of the most popular of Satterly's Victoria properties is the Botanical.
As one of the newest and best-performing suburbs in Australia's real estate market, Box Hill is a hot commodity.
Located 20 kilometres from the central business district, the area may have seen a recent spike in its value due to its proximity to cutting-edge medical facilities, educational institutions, and job markets.
Box Hill, a well-established growing market in Melbourne's eastern suburbs, is a strong contender for our best suburbs list after achieving an investment income of 21.85% over 2021*.
Tarneit, a leafy suburb with Werribee as well as the bay close by, has experienced steady growth in recent years.
Recent predictions put population growth in Melbourne's western region at 12%, comfortably above the 20% average for metropolitan areas.
With a median home price of $604,000* and a location just 25 kilometres from Melbourne's central business district, Tarneit is a rapidly developing suburb. In addition, Satterley is pleased to have delivered one amongst Tarneit's most sought-after communities, Habitat on Davis Creek, where only a few lots remain.
Habitat on Davis Creek is a great place for families because of the abundance of open areas.
Pakenham, a suburb of Melbourne that is 54 km south-east of the central business district, has experienced rapid population growth over the past 30 years. As this sought-after area nears capacity, Pakenham East, a recently developed community nearby, is seeing an uptick in interest from homebuyers.
After completion, Pakenham East will add 7,200 new, affordable homes to Victoria's housing stock, produce 1,300 new jobs, and add over $1 billion to the state's economy. The initial price and selection of land will be ideal for investment value, and buyers can anticipate a town centre, 3 main schools, a high school, 3 community centres, and 44 acres of local parks as well as sporting reserves.
Buyers in Pakenham East could get a great deal if they consider the new suburb, which has a lot of potential and is predicted to have positive rental yields. Several reputable construction firms have shown interest in Pakenham East, a Melbourne suburb, suggesting that they see great potential in the region.
Take the Donnybrook Road exit off the Hume Freeway and find out why this spot is so well-liked. Donnybrook, in northern Melbourne, is a thriving community. Five local village centres, five simplicity centres, six public schools, four private schools, and 46 acres of parkland are all on the drawing board for Woodstock and its neighbouring suburb. One of Emily's fastest-growing communities, Donnybrook, has recently undergone station upgrades that have improved accessibility, safety, and passenger comfort.
Greenvale is a suburb in northern Melbourne that has long been considered desirable because of its proximity to Airport, Greenvale Shopping Centre, and a 10-acre sporting precinct.
You can reach Melbourne in just 24 kilometres from this long-standing, family-friendly suburb. There is consistent demand for homes in this long-standing community that caters to families.
Investment-minded buyers in search of a bargain in Greenvale and Melbourne's north will find it in Satterley's True North community.
The picturesque estate offers residents a high standard of living coupled with unparalleled cityscape vistas.
Over the past two decades, Greenvale's neighbourhood has grown to become a desirable location for both renters and buyers.
Visualization of Satterley's North Star Greenvale neighbourhood.
Located 19 kilometres to the south-east of the Central Business District, Glen Waverley is primarily a residential area with some significant commercial areas near the Glen Camberwell Railway Station.
The Glen Shopping Centre, Dale Waverley Golf Course, and Central Reserve all contribute to the high demand for rental properties in this suburb, which has a median house price of just over $1.3 million*.
Glen Waverley Junior high College is widely considered to be among the top public schools in Victoria, making the quality of education one of the neighborhood's biggest draws.
For many years, investors and families in Australia's real estate market have been attracted to this highly sought-after neighbourhood in large part due to the quality of its schools.
Geelong is one of the fastest-growing regional cities in Australia, and its proximity to Melbourne makes it an attractive option for those looking for a comfortable but active lifestyle.
The port city of Geelong has long been on the radar of Melbourne real estate investors due to its position as a gateway to the world-famous coastline of south-west Victoria through the Great Ocean Road.
Geelong has excellent transport interconnection to Melbourne and a huge selection of public infrastructure not typically found inside a regional area, including air, sea, road, and rail, all of which contribute to the city's median home price of $788,000*.
The Spirit of Tasmania, for instance, will relocate to Geelong Port by the year's end.
This sort of investment is what keeps Geelong on the radar of a wide range of industries, which in turn keeps Geelong on the radar of savvy financiers who know they can get a good return on their money there.
The best area of Melbourne to put money into if you want your money to grow at an astounding rate of interest.
Home prices in McCrae have increased by 24.3% annually, as reported by a Domain Property Report. This isn't a terrible introduction, is it?
The suburb is located on Mornington Peninsula, a highly desirable area with skyrocketing real estate prices.
The suburb has a vacancy rate as low as 0.18%, with roughly 10.71percentage points of the population living in rented housing.
Despite its low rental yield, this neighbourhood is becoming increasingly desirable due to its rapid residential development. Assuming you trust the local trend, it's a wise choice.
- McCrae, British Columbia: median house price $1,000,000; median condo price $582,50
- McCrae's average rental income for homes is 2.3%, while average rental income for apartments is 4%.
- McCrae's average house price increased by 10.8 percent and the average apartment price increased by 3.5 percent over a five-year period.
The best place to buy an investment property in Melbourne if you can stand the bidding wars and are looking for a low-risk, reduced, great all-rounder.
- Sunbury is a great option for a rental home because it has everything you could possibly need right now.
- Although it is located outside of the Central Business District, getting there is simple.
- The median price of a home here is a very reasonable $575,000, making it a great investment.
- We have a thriving rental population at 19.09%, to vacancy levels as low as 0.87%.
- The housing market is growing at a robust 8.9 percent.
The only problem is that the suburb has received too much attention in Melbourne's real estate market. For this reason, it may be difficult to acquire real estate in the area and you may have to contend with competitive offers.
- Sunbury median home costs: $575,000 for houses and $432,500 for apartments
- Sunbury, on average, houses yield 3.4% in rental income, while apartments yield 4.3%.
- Sunbury's five-year CAGR for homes is 9.1%, while the CAGR for apartments is only 5.9%.
It's the best place to put your money if you want to buy a house in Melbourne but don't want to spend a fortune.
Melton, a suburb on Melbourne's outskirts, is one of RealEstate.com.au's top picks for 2021 because of its 8.9% annual house price growth, despite its proximity to the city centre. Still, with such a 7.1% growth rate, this suburb is promising for homebuyers.
Property Update's Michael Yardney warns that prospective buyers in the inner City should leave their cash at home when viewing condos.
Although it appears that property growth in most Melbourne suburbs is picking up steam, growth in Melbourne's central city still is lagging behind. Still, the cost of living is relatively low, making this a good choice for those with limited funds.
- Melton, Queensland: Median house price $391,250 ($326,000 for units).
- Melton's average rental return is 4.3% for homes and 4.8% for apartments.
- Melton's average annual house price growth over the past five years has been 8.9%, while the average annual growth rate for apartments is 7.1%.
The typical sale price in Melbourne has increased by 47% year-over-year, and rental yields have increased to 3.98%. Among Melbourne's suburbs, Tyabb has the highest average selling price at $892,500. When it comes to selling a home, Derrimut ranks as the fifth most expensive neighbourhood in Australia. The typical sale price in Kensington has increased by 25%, from $900,000 to $1,121,000. With a rental yield of 2.51%, Merrrumbeena is ranked in at number eight, close behind Heidelberg in terms of desirability.
The median sale price and rental yield in Mont Albert North are both among the highest in the city. Melton has the fastest-growing economy in Victoria, and its median home price is $390,00*. Getting to Officer from Melbourne's central business district takes 45 kilometres. With a median house price of $604,000* and a location just 25 km from Melbourne's CBD, Tarneit is one of Satterley's most desirable neighbourhoods. Over $1 billion will be injected into the state economy thanks to the construction of 7,200 new, affordable dwellings in Pakenham East in Victoria.
Greenvale is a suburb of Melbourne, Australia, that has long been prized for its convenient location near the airport, the Greenvale Shopping Centre, and a large sports complex covering 10 acres. Mostly residential, with some major business sections near the Glen Camberwell Railway Station, Glen Waverley is located 19 kilometres south-east of the Central Business District.
- Communities that are growing and expanding are easy to identify in Melbourne.
- Experts predict an 8-12% increase in Victoria's economy by the end of 2021, thanks in large part to a resurgence of consumer confidence in the city's real estate market.
- With the big government stimulus, historically low loan rates, and rising investment value, it looks that now is a great time to enter the real estate market.
- Given the current regional real estate market bubble in Australia, it's not surprising that most of Melbourne's growth areas are situated outside of the CBD.
- However, there are remote areas that have thrived despite all difficulties.
- Tyabb Tyabb is the best Melbourne neighbourhood for buyers, with an average transaction price of $892,500.
- Hughesdale is the third-best investment suburb in Melbourne, and it's only 15 kilometres south-east of the CBD.
- There was a 25% increase in the median sale price from $900,000 to $1,121,000 in Kensington.
- Murrumbeena, which is south-east of Melbourne, has a rental yield of 2.51%, making it the ninth highest in Australia.
- Orchard Park Among all of Melbourne's neighbourhoods, Park Orchards is the seventh best bet for your money.
- Northern Mont Albert Located about 14 kilometres from Melbourne's CBD, the eastern neighbourhood of Mont Albert North rounds out the top 10 greatest places to invest in Melbourne.
- The median sales price has risen significantly by 21% in the past year, from $110,000 to $1525,000.
- The rental yield and median selling price growth in Mont Albert North rank second and second-highest, respectively, among the top 10 markets.
- Officer, to the south-east of Melbourne, is a pleasant blend of rural and urban characteristics.
- Melton Melton is moving slightly to the north, still in western Melbourne, and enjoying rising property values.
- The region's economy has risen faster than any other in Victoria during the previous decade, and the median property price there is $390,000.
- There has been a rise in the number of people looking to buy homes in Melton because of this.
- Homebuyers and builders alike have long had their sights set on Mickleham, as the area is one of the most sought in the city.
- To the top of Box Hill Box Hill is one of the most sought-after areas in Australia due to its status as a relatively new and financially successful suburb.
- Tarneit is an expanding suburb of Melbourne with a typical home price of $604,000* and a convenient position about 25 kilometres from the city centre.
- In addition, Satterley is thrilled to have delivered Habitat on Davis Creek, one of Tarneit's most sought-after subdivisions.
- Because of all the open space, the neighbourhood on Davis Creek is perfect for raising a family.
- Area KE of Pakenham Over the past 30 years, Pakenham, a suburb of Melbourne located 54 kilometres south-east of the central business district, has seen a significant increase in its resident population.
- Pakenham East, a newly created community close by, is becoming increasingly popular as this desirable location nears capacity.
- When finished, Pakenham East will add over $1 billion to Victoria's economy, create 1,300 new employment, and increase the number of available houses by 7,200.
- Potentially lucrative rental returns are expected in the new Pakenham East neighbourhood, making it an attractive option for prospective buyers.
- Pakenham East is a suburb of Melbourne, and it has attracted the attention of several reputable building companies, indicating that they see promising prospects there.
- Donnybrook is a bustling neighbourhood in Melbourne's north.
- Greenvale is a suburb of Melbourne, Australia, that has long been prized for its convenient location near the airport, the Greenvale Shopping Centre, and a large sports complex covering 10 acres.
- Homes in this established neighbourhood that focuses on serving families are in high demand.
- For savvy investors looking for a deal in the northern suburbs of Melbourne and Greenvale, Satterley's True North is the place to be.
- Greenvale is a community that has flourished over the past two decades to become a sought-after area for both renters and homeowners.
- Diagram showing the North Star Greenvale area of Satterley.
- Rental houses in this area, where the median home price is slightly over $1.3 million*, are in high demand due to their proximity to popular attractions including The Glen Shopping Centre, Dale Waverley Golf Course, and Central Reserve.
- For many years, investors and families in Australia's real estate market have been attracted to this highly sought-after neighbourhood in large part due to the quality of its schools.