Investing in Melbourne property market has always been a strategic move for both seasoned investors and first time home buyers in Australia. With its robust economy, world-class infrastructure, and diverse population, Melbourne continues to be one of Australia’s most lucrative cities for property investment among most of the property investment enthusiasts.
In 2025, though the Melbourne property market had a negative drop (-1.8%) in dwelling values, this should be revert back at its original place anytime soon (CoreLogic January 2025 House Chart). Melbourne offers a mix of high end suburbs for premium investors and affordable suburbs for those just entering the highly saturated Australian property market.
Whether you are a seasoned property investors who just enjoy taking super high risks for even more higher ROI or you are just stepping into the property market by searching and starting to invest in properties for building wealth, this article provides a unique data-driven approach towards considering Melbourne suburbs for property investment in 2025.
Whenever making a property investment decision, it’s important to have a clear understanding of the place/area that you are going to invest in.
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So, why invest in properties in Melbourne Suburbs?
Melbourne remains an attractive destination for property investors due to its:
Strong Population Growth: Melbourne is forecasted to become Australia’s largest city by 2030, driving demand for housing and property investment.
Diverse Economy: The city boasts industries ranging from finance to education, ensuring economic stability in the long run.
Infrastructure Development: Projects like the Suburban Rail Loop and West Gate Tunnel are enhancing connectivity and boosting property values.
Whether you’re seeking capital growth or rental yield, Melbourne suburbs cater to a wide range of investment goals. Now let’s deep dive into the top 10 suburbs in Melbourne for property investment.
Top 10 Suburbs for Property Investment in Melbourne in 2025
For property investors with substantial capital budgets for investment properties in Melbourne’s most suitable suburbs, these suburbs promise strong capital growth and attractive rental yields. All the data for the suburbs have been in relevance with Jan 2025 data.
| Suburb Name | ZIP Code | Median House Price | 12 Month Growth (Feb ’24 – Jan ’25) | Median Unit/Apartment Price | 12 Month Growth (Feb ’24 – Jan ’25) |
|---|---|---|---|---|---|
| Toorak | 3142 | $4,400,000 | -25.5% | $845,000 | -14% |
| Brighton | 3186 | $3,225,000 | +3.2% | $1,200,000 | -1.6% |
| Kew | 3101 | $2,646,000 | -3.8% | $760,000 | -4.2% |
| Hawthorn | 3122 | $2,900,000 | +1.6% | $585,000 | 0.0% |
| Balwyn | 3103 | $2,888,000 | -2.8% | $870,000 | -18.2% |
| Fitzroy North | 3068 | $1,510,000 | -6.5% | $665,000 | +3.1% |
| Glen Waverley | 3150 | $1,675,500 | -1.8% | $952,000 | +11.3% |
| McKinnon | 3204 | $1,805,000 | -8.6% | $790,500 | -2.4% |
| Mitcham | 3132 | $1,135,000 | -5.7% | $790,000 | -2.5% |
| Moonee Ponds | 3039 | $1,485,000 | -2.5% | $565,000 | +10.8% |
Source: realestate.com.au
Why these Melbourne suburbs to choose for your property investment decision?
Toorak & Brighton: Known for luxury homes and elite schools, these suburbs attract affluent buyers.
Kew & Hawthorn: Proximity to the CBD and prestigious schools make these areas highly desirable.
Fitzroy North: Offers a vibrant lifestyle with cafes and parks while maintaining strong growth potential.
Glen Waverley & McKinnon: Popular among families due to excellent schools and amenities.
Now let’s see the affordable suburbs to buy investment property in Melbourne in 2025.
Top 10 Affordable Suburbs for Property Investment in Melbourne (2025)
For first time home buyers or budget-conscious investors, these affordable suburbs offer excellent entry points into the market.
| Suburb Name | ZIP Code | Median House Price | 12 Month Growth (Feb ’24 – Jan ’25) | Median Unit/Apartment Price | 12 Month Growth (Feb ’24 – Jan ’25) |
|---|---|---|---|---|---|
| Melton | 3337 | $468,750 | -1.3% | $380,000 | +2.3% |
| Carlton | 3053 | $1,727,500 | +3.4% | $755,000 | 7.7% |
| Point Cook | 3030 | $750,000 | 0.1% | $520,000 | 2.0% |
| Hoppers Crossing | 3029 | $625,507 | 1.7% | $445,000 | 1.1% |
| Mickelham | 3064 | $675,000 | -0.7% | – | – |
| Craigieburn | 3064 | $647,000 | 1.9% | $404,000 | -3.8% |
| Dandenong | 3175 | $720,000 | +5.1% | $400,000 | 0.0% |
| Eumemmerring | 3177 | $637,500 | +2.8% | $580,000 | +12.2% |
| Carrum Downs | 3201 | $700,000 | +2.3% | $570,000 | +6.4% |
| Thomastown | 3074 | $714,950 | +3.1% | $503,000 | +5.0% |
Source: realestate.com.au
Why These Melbourne Suburbs?
Melton & Mickelham: Benefit from urban expansion and new housing developments.
Hoppers Crossing & Point Cook: Strong family appeal with schools and shopping centres.
Dandenong & Craigieburn: Affordable entry points with good transport links.
Key Trends Driving Melbourne Property Market in Australia
- Infrastructure Projects: Developments like the Melbourne Airport Rail Link are increasing demand in outer suburbs.
- Population Growth: Migration trends continue to support demand across all price ranges.
- Lifestyle Preferences: Buyers are prioritising access to parks, schools, and public transport.
Considering buying your very first home using your superannuation? Look at the top 7 things you should consider if you use your superannuation to buy a house in Australia in 2025.
Key Tips for Property Investors
- Research local amenities such as schools and transport links when selecting a suburb.
- Consider rental yield alongside capital growth potential to maximise ROI.
- Monitor infrastructure developments that could boost property values.
Melbourne’s property market in 2025 offers opportunities for all types of investors. Whether you’re looking for luxury properties or affordable entry points into the market, understanding the trends and data behind each suburb is key to making informed decisions. For personalised advice tailored to your investment goals, contact our experienced property analysts today!
Frequently Asked Questions (FAQs) on Top 10 Best Suburbs for Property Investment in Melbourne Property Market in 2025
- What’s the best area to buy a house in Melbourne?
The best areas often depend on personal preferences, but suburbs like Glen Waverley and Mitcham offer a great balance of affordability and amenities for families. - What’s a better suburb for a young Indian family in Melbourne?
Suburbs like Mount Waverley or Clayton are popular among families due to their proximity to good schools and cultural amenities. - Is it wise to invest in an apartment in Melbourne CBD?
Investing in apartments within the CBD can be lucrative due to high rental demand, but consider factors like vacancy rates and potential oversupply before making a decision. - Is property in Australia a good investment?
Property remains one of Australia’s most stable investments, offering long-term capital growth and rental income opportunities. - In which suburbs of Melbourne do the richest people live?
Affluent suburbs include Toorak, Brighton, Kew, Hawthorn, and Balwyn—known for their luxury homes and elite lifestyle options. - What are some of the best and worst suburbs of Melbourne?
Best suburbs often include those with strong growth potential like Deepdene or Glen Waverley; while “worst” can vary based on criteria such as safety or infrastructure—areas with lower demand might include some outer regions lacking amenities. - Can people invest in property at 18 in Australia?
Yes, individuals can invest at 18 if they have sufficient funds or financing options available; however, it’s crucial to seek professional advice before making such significant financial decisions. - Is it worth owning rental property in Australia?
Owning rental properties can be worthwhile if managed correctly—it provides passive income through rent while potentially appreciating over time. - Is it too risky to buy an investment property sight unseen?
Buying sight unseen carries risks without inspecting physical conditions; always conduct thorough research or use trusted agents when possible. - What are the top 10 suburbs in Melbourne for first-time property investors?
For first-time investors looking at affordable options: Melton, Carlton (units), Point Cook, Hoppers Crossing are promising due to their affordability combined with steady growth potential. - Which Melbourne suburbs offer the best balance between property value growth and rental yields?
Suburbs like Mitcham provide strong family appeal with growing demand from tenants while maintaining reasonable prices compared to inner-city areas. - How do property taxes (e.g., stamp duty) compare between major Australian cities?
Stamp duty varies across states—Victoria offers concessions that may make purchasing more attractive compared to other states. - What common mistakes do first-time investors make?
Common mistakes include not researching local market trends thoroughly enough or failing to account for ongoing expenses beyond purchase price. - How does the Melbourne market compare with Sydney’s investment potential?
Both cities have unique strengths—Melbourne is known for its robust economy while Sydney offers higher median prices but potentially slower growth rates compared historically. - What is the best suburb for capital growth in Melbourne?
Toorak and Brighton remain top choices due to their consistent demand from affluent buyers. - What are the most affordable suburbs in Melbourne?
Melton and Carlton offer excellent affordability while showing steady growth potential. - Should I invest in high-end or affordable suburbs?
This depends on your budget and investment goals. High-end suburbs offer strong capital growth but require larger upfront investment. Affordable suburbs provide entry-level opportunities with steady returns.
