Authored by the expert who managed and guided the team behind the Australia Property Pack
Yes, the analysis of Melbourne's property market is included in our pack
Melbourne's property market offers diverse investment opportunities across its suburbs, with median house prices ranging from $572,500 in Laverton to over $1.95 million in premium areas like Aberfeldie. The market shows strong performance with select suburbs experiencing 100-280% growth over the past decade, while rental yields typically range from 2.5% to 4.5% depending on location and property type.
As of September 2025, Melbourne's investment landscape is characterized by growth corridor suburbs showing exceptional potential, established premium areas maintaining steady appreciation, and infrastructure-driven developments reshaping entire neighborhoods. Smart investors are focusing on suburbs with population growth rates of 2-4% annually, proximity to major infrastructure projects, and balanced rental demand from both families and professionals.
If you want to go deeper, you can check our pack of documents related to the real estate market in Australia, based on reliable facts and data, not opinions or rumors.
Melbourne's best investment suburbs combine affordable entry points with strong growth potential, with areas like Mickleham and Cobblebank showing 200%+ growth over ten years.
Premium suburbs like South Yarra and Kew offer stability and prestige but require higher capital investment, while emerging growth corridors provide better rental yields and capital appreciation potential.
| Suburb Category | Median House Price Range | Investment Characteristics |
|---|---|---|
| Growth Corridors (Mickleham, Cobblebank) | $600,000 - $900,000 | High growth potential, new infrastructure, family-oriented |
| Established Premium (South Yarra, Kew) | $1.2M - $1.9M | Stable appreciation, low vacancy, prestige locations |
| Affordable Entry (Braybrook, Laverton) | $570,000 - $760,000 | Higher rental yields, gentrification potential |
| Inner City Units (Richmond, St Kilda) | $495,000 - $850,000 | Strong rental demand, proximity to CBD |
| Family Suburbs (Glen Waverley, Caulfield) | $900,000 - $1.4M | School zones, stable tenant base, consistent growth |
What is the current median house and unit price in each suburb of Melbourne?
Melbourne's property prices vary dramatically across suburbs, with the current median house price citywide sitting between $940,000 and $1,064,000 as of September 2025.
Premium suburbs command the highest prices, with South Yarra leading at approximately $1.8 million for houses, while Aberfeldie has reached $1.95 million following a 21.6% year-on-year increase. Kew units are trading at around $848,098, demonstrating the premium attached to established, prestigious locations.
Mid-range investment opportunities exist in suburbs like Braybrook at $760,000 for houses and Richmond at $1.355 million for houses and $599,000 for units. These areas offer a balance between affordability and growth potential, particularly attractive to investors seeking entry into established markets.
Affordable entry points are found in suburbs like Laverton at $572,500 for houses and St Kilda West units at $495,000. These areas represent significant value for investors willing to target emerging neighborhoods with gentrification potential.
The median unit price across Melbourne sits at approximately $615,000, making apartments more accessible for first-time investors and those seeking higher rental yields in prime locations.
What has been the historical growth rate of property values in these suburbs over the past 5 to 10 years?
Melbourne's property market has delivered exceptional returns over the past decade, with several suburbs achieving remarkable growth rates that have fundamentally transformed investment landscapes.
The standout performers include Cobblebank with 281% growth, Mickleham with 263% growth, Weir Views with 232% growth, and Frankston North with 120% growth over ten years. These growth corridor suburbs have benefited from new infrastructure, expanding transport links, and Melbourne's rapid population expansion.
Melbourne's citywide historical growth rate averages 8-9% annually over 25 years, though recent performance shows more variation. Some premium suburbs like Aberfeldie recorded 20-25% year-on-year growth, while the overall market showed -1.0% for houses and -1.6% for units in certain periods.
The suburbs that doubled in value represent smart investment choices for those who identified early growth signals including proximity to transport infrastructure, population growth corridors, and areas undergoing urban renewal. These patterns continue to guide savvy investors toward emerging opportunities.
It's something we develop in our Australia property pack.
What are the rental yields in these areas, and how do they compare between houses and apartments?
Rental yields across Melbourne suburbs typically range from 2.5% to 4.5%, with units consistently outperforming houses in yield generation.
High-demand investment suburbs like Springvale and Doncaster East offer some of the market's best rental yields, particularly for unit investments. These areas combine strong tenant demand with relatively affordable purchase prices, creating optimal conditions for cash flow positive investments.
Units generally provide superior yields compared to houses due to lower purchase prices and consistent rental demand from professionals, students, and small families. Inner-city units in suburbs like Richmond and St Kilda West maintain occupancy rates above 95% while generating yields in the 3.5-4.5% range.
Houses typically yield between 2.5-3.5% but offer better long-term capital growth potential and appeal to family tenants who tend to stay longer. Premium suburbs like South Yarra and Kew show lower yields but compensate with steady capital appreciation and minimal vacancy periods.
Growth corridor suburbs often provide the best balance, with newer houses yielding 3-4% while benefiting from infrastructure-driven capital growth that can exceed 15% annually in peak development phases.
What is the current vacancy rate in each suburb, and how stable has it been in recent years?
Melbourne's vacancy rates vary significantly by suburb, with central areas typically maintaining tighter vacancy rates below 2% while some outer suburbs experience higher supply fluctuations.
| Suburb Category | Typical Vacancy Rate | Market Stability |
|---|---|---|
| Inner City (Richmond, South Yarra) | 1.5-2.5% | Very stable, high professional demand |
| Growth Corridors (Mickleham, Cobblebank) | 2-3% | Fluctuating with new supply, trending down |
| Established Family (Kew, Glen Waverley) | 1-2% | Extremely stable, school zone demand |
| Affordable Entry (Laverton, Braybrook) | 3-4% | Moderate stability, improving with gentrification |
| University Areas (Carlton, Parkville) | 2-3% | Seasonal variation, student-dependent |
| Outer Suburbs (Melton, Pakenham) | 3-5% | Variable, supply-driven fluctuations |
| Bayside Premium (Brighton, Sandringham) | 1.5-2% | Highly stable, lifestyle-driven demand |
Don't lose money on your property in Melbourne
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What is the population growth rate in these suburbs, and how is it projected to change in the next decade?
Melbourne's population growth has been among Australia's strongest, with the city projected to become the nation's largest, driving exceptional demand across strategic suburbs.
Growth corridor suburbs like Mickleham and Melton areas experience annual population increases of 2-4%, supported by new housing developments, improved transport links, and Melbourne's expanding urban footprint. These areas are projected to maintain strong growth through 2035 as infrastructure catches up with residential development.
Established inner suburbs show more modest but consistent population growth of 1-2% annually, driven by urban densification, apartment developments, and professional migration. Areas like Richmond and South Yarra benefit from job market proximity and lifestyle attractions.
Family-oriented suburbs with excellent school catchments, such as Glen Waverley and Kew, maintain steady population growth of 1.5-2.5% annually as families prioritize education access and established community infrastructure.
The demographic shift toward Melbourne is expected to continue through 2035, with infrastructure investment supporting population distribution across growth corridors while established suburbs experience selective densification and premium pricing.
What are the major infrastructure projects planned or under construction in these areas, and what is their expected impact on property prices?
Major infrastructure projects across Melbourne are reshaping property investment opportunities, with train line extensions, hospital expansions, and freeway upgrades driving substantial price appreciation in targeted suburbs.
Recent infrastructure winners include Aberfeldie, Heidelberg, Moorabbin, and Caulfield South, all recording double-digit price growth directly linked to infrastructure investment. These projects typically generate 10-25% price increases within 2-3 years of completion.
New train stations and improved transport links create the most significant impact, with suburbs near planned Metro Tunnel stations and level crossing removals seeing immediate investor interest. Properties within 800 meters of new stations typically appreciate 15-30% faster than comparable areas.
Hospital expansions and university developments create sustained rental demand while supporting long-term capital growth. Areas like Parkville near hospital precincts maintain consistently low vacancy rates and strong yield performance.
Road infrastructure improvements, including freeway upgrades and new arterial connections, enhance suburb accessibility and appeal to both owner-occupiers and investors, typically generating 5-15% premium pricing within completed catchment areas.
What is the median household income in these suburbs, and how does it align with property affordability?
Melbourne's suburb income levels vary dramatically, directly correlating with property prices and investment potential across different market segments.
Premium inner suburbs like South Yarra, Kew, and Richmond feature high median household incomes exceeding $80,000-$120,000 annually, supporting property values above $1.2 million and creating stable, affluent tenant bases for investment properties.
Growth corridor suburbs typically show median incomes between $65,000-$85,000, aligning well with property prices in the $600,000-$900,000 range and creating sustainable affordability ratios for both purchasers and renters.
Affordable entry suburbs like Doveton and Meadow Heights feature lower median incomes around $45,000-$65,000, but property prices remain proportionally accessible, creating opportunities for investors targeting essential worker housing and first-home buyer markets.
The income-to-house price ratios across Melbourne reflect increasing affordability pressure citywide, but strategic suburb selection can identify areas where income growth is outpacing property price increases, signaling strong investment fundamentals.
What are the average days on market for properties in each suburb?
Property selling times across Melbourne suburbs reflect market demand intensity, with hot markets near infrastructure and amenities clearing faster than outer fringe areas.
1. **Premium established suburbs (Kew, South Yarra)**: 20-35 days on market due to limited supply and strong buyer competition2. **Growth corridor hot spots (Mickleham, Cobblebank)**: 25-40 days reflecting new buyer interest in emerging areas 3. **Inner city units (Richmond, Carlton)**: 30-45 days with consistent professional buyer demand4. **Affordable family areas (Glen Waverley, Caulfield)**: 35-50 days as families take time to secure school zone properties5. **Outer fringe suburbs (Melton, Pakenham)**: 45-70 days due to higher supply and price-sensitive buyers6. **Waterfront/lifestyle areas (Brighton, Sandringham)**: 40-60 days as buyers seek specific features and locationsInfrastructure-adjacent properties and those in gentrifying areas consistently sell faster than comparable properties, often achieving premium prices due to competitive bidding situations.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What percentage of residents are owner-occupiers versus renters in these suburbs?
Melbourne's ownership patterns reveal distinct investment opportunities, with rental-heavy suburbs offering better yield potential while owner-occupier dominated areas provide stability and capital growth.
New growth suburbs often show higher rental percentages, sometimes exceeding 50%, as young families and investors dominate these emerging markets. Areas like Mickleham and Cobblebank feature strong rental demand from families transitioning between rental and ownership.
Established leafy suburbs like Kew and Glen Waverley typically show 65-75% owner-occupier rates, creating stable neighborhoods with strong community investment and consistent property maintenance standards.
Inner city apartment-dominated areas like Richmond and South Yarra often feature 40-60% rental populations, providing excellent investment opportunities with professional tenants seeking location convenience over ownership.
University-adjacent suburbs show seasonal rental variations, with areas near Monash, Melbourne University, and RMIT maintaining 60-70% rental populations during academic periods, creating specialized investment opportunities for education-focused landlords.
What are the crime rates and safety statistics for each area compared to Melbourne's average?
Melbourne's suburb safety profiles significantly impact both rental demand and long-term capital growth, with family-oriented areas commanding premiums for low crime rates.
| Suburb Category | Crime Rate vs Melbourne Average | Investment Impact |
|---|---|---|
| Premium Family (Kew, Glen Waverley) | 20-40% below average | Strong family appeal, premium pricing |
| Inner City Mixed (Richmond, South Yarra) | 10-25% above average | Professional acceptance, nightlife factor |
| Growth Corridors (Mickleham, Cobblebank) | 5-15% below average | New development advantage, family-friendly |
| Gentrifying Areas (Braybrook, Laverton) | 15-30% above average, improving | Value opportunity, improvement trajectory |
| Established Bayside (Brighton, Sandringham) | 30-50% below average | Lifestyle premium, stable values |
| Outer Affordable (Melton, Pakenham) | 5-20% above average | Price sensitivity, improving infrastructure |
| University Areas (Carlton, Parkville) | Variable, entertainment precinct effects | Student market tolerance, location premium |
What are the school rankings and access to universities in these suburbs, and how does that influence housing demand?
Melbourne's education landscape creates significant property premiums, with top school zones commanding 15-30% price premiums and maintaining consistently low vacancy rates.
Elite school zone suburbs like Kew, East Melbourne, and Glen Waverley are renowned for primary and secondary school access, with selective entry government schools and leading private institutions driving sustained family demand and creating rental markets for education-focused families.
University proximity influences different market segments, with areas near Melbourne University, Monash, and RMIT attracting both student rental markets and academic staff seeking convenient housing. These precincts maintain rental yields above 4% due to consistent education-driven demand.
Private school corridors, particularly those serving Melbourne Grammar, Scotch College, and Methodist Ladies' College, create property hotspots where families prioritize location over price, supporting premium property values and stable rental markets.
It's something we develop in our Australia property pack.
Growth corridor suburbs are strategically developing new schools and education precincts, creating early investment opportunities where future school zone premiums can be captured at current market rates before educational infrastructure is fully established.
What are the council rates, stamp duty, and other recurring costs of property ownership in these areas?
Melbourne property ownership costs vary significantly across councils and property values, impacting investment returns and requiring careful calculation in purchase decisions.
Council rates typically range from $1,300 annually in affordable outer suburbs to over $3,000 in premium inner areas, calculated on property valuations and council service levels. High-value suburbs like South Yarra and Kew command top rates due to extensive council services and prime locations.
Stamp duty represents a major upfront cost, potentially exceeding $40,000 for median-priced houses, though first-home buyer concessions and exemptions may reduce this burden for eligible purchasers. Investment properties face full stamp duty obligations without concessions.
Unit ownership includes strata levies ranging from $2,000-$8,000 annually depending on building age, amenities, and management quality. Premium developments with pools, gyms, and concierge services command higher levies but often attract quality tenants willing to pay rental premiums.
Additional recurring costs include property insurance ($800-$2,500 annually), utilities connections, maintenance provisions, and property management fees (typically 6-8% of rental income for professional management services).
It's something we develop in our Australia property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Melbourne's property investment landscape offers compelling opportunities across diverse price points and growth trajectories, from high-yield growth corridors to stable premium suburbs.
Strategic suburb selection based on infrastructure development, population growth, and education access creates the foundation for successful long-term property investment in Australia's fastest-growing major city.
Sources
- OpenAgent Melbourne Property Market
- RealEstate.com.au Melbourne House Prices
- Domain Melbourne Suburbs Price Growth
- RealEstate.com.au Melbourne 10-Year Growth
- Domain Popular Suburbs Australia 2025
- Aussie Home Loans 25 Years Report
- RealEstate.com.au Melbourne Rate Cut Impact
- Mitchell Torre August 2025 Market Update