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Yes, the analysis of Melbourne's property market is included in our pack
Melbourne offers diverse property investment opportunities across its suburbs, with median house prices now at $983,000 and units at $615,000 as of September 2025.
Growth corridor suburbs like Wyndham and Melton show strong capital appreciation potential with 22-32% five-year growth rates, while inner-city areas like Melbourne CBD deliver rental yields up to 8.6% for units and established suburbs like Toorak maintain premium prices at $3.4 million for houses.
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Melbourne's property market shows clear segmentation between high-growth outer suburbs and high-yield inner areas, with vacancy rates at historic lows of 1.7% supporting rental returns.
Infrastructure projects like the Suburban Rail Loop and Airport Rail Link are driving development in western and northern growth corridors, while established eastern suburbs maintain premium pricing.
| Investment Focus | Best Areas | Key Metrics |
|---|---|---|
| Capital Growth | Wyndham, Melton, Tarneit | 22-32% 5-year growth, 2-3% population growth |
| Rental Yield | Melbourne CBD, Carlton, Travancore | 7.5-8.6% yields, 1.7% vacancy |
| Premium Market | Toorak, Brighton, Malvern | $3.4M+ houses, $142K+ household income |
| Emerging Growth | Sunshine, Preston, Broadmeadows | Major rezoning, infrastructure investment |
| Balanced Investment | Officer, Rockbank, Cranbourne | 4-4.9% yields, strong development pipeline |
| Infrastructure Play | Outer west/north corridors | Suburban Rail Loop, Airport Rail Link |
What's the current median property price in each suburb of Melbourne?
Melbourne's median property prices vary dramatically across suburbs, with house prices ranging from $471,000 in outer areas to $3.4 million in premium locations as of September 2025.
The citywide median house price sits at $983,000, while units average $615,000 across Melbourne. Premium inner suburbs command the highest prices, with Toorak leading at approximately $3.4 million for houses and $780,000 for units.
Affordable outer suburbs offer entry-level opportunities, with areas like Norlane and Melton showing house prices around $470,000-$471,000. These areas represent significant value compared to established inner suburbs, though they're experiencing rapid price appreciation.
Mid-tier suburbs in growth corridors like Wyndham, Cranbourne, and Officer typically range from $600,000 to $800,000 for houses, positioning them as attractive options for investors seeking balance between affordability and growth potential.
Unit prices show less variation across suburbs, generally ranging from $400,000 in outer areas to $780,000 in premium locations like Toorak.
How much has the median property price grown in each suburb over the past 5 and 10 years?
Melbourne's outer growth suburbs have delivered exceptional capital appreciation, with some areas seeing house prices more than double over the past decade.
High-growth outer suburbs like Cobblebank, Mickleham, and Weir Views have experienced extraordinary 10-year growth rates of 120-280%, representing some of Australia's strongest property performance. Areas like Frankston North and Lang Lang have maintained annualized growth exceeding 6-7% over the past decade.
Five-year growth patterns show outer suburbs significantly outperforming inner areas, with cheaper suburbs like Norlane and Melton achieving 22-32% growth compared to inner suburbs averaging 10-13% for houses. This trend reflects the infrastructure investment and population growth driving outer metropolitan development.
Inner suburbs have shown more moderate but consistent growth, with established areas like those around Toorak experiencing steady 10-13% appreciation over five years. While lower in percentage terms, these represent substantial dollar gains given the higher base prices.
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What are the current rental yields across different suburbs?
Melbourne's rental yields are strongest in affordable outer suburbs and high-density inner areas, with yields ranging from 3% to 8.6% depending on location and property type.
| Suburb/Area | Property Type | Rental Yield |
|---|---|---|
| Melbourne CBD | Units | 8.6% |
| Travancore | Units | 7.6% |
| Carlton | Units | 7.5% |
| Notting Hill | Units | 7.5% |
| Junction Village | Houses | 4.9% |
| Outer suburbs | Houses | 4.0-4.9% |
| Premium suburbs | Houses | 3.0-4.0% |
How have rental yields trended in those areas over the past decade?
Rental yields across Melbourne have strengthened significantly in 2024-25, driven by chronic rental shortages and record-low vacancy rates.
The citywide median yield for units has increased to 5-7%, up from historical averages of 4-5%, while house yields now range from 3-4.5% depending on location. This improvement reflects the combination of strong rental growth and relatively stable property prices in some segments.
Inner-city unit yields have been particularly strong, with areas like Melbourne CBD, Carlton, and Travancore benefiting from student and professional rental demand. The concentration of employment and education facilities in these areas supports sustained rental demand even during economic uncertainty.
Outer suburban house yields have improved as rental demand spreads beyond inner areas, with many growth corridor suburbs now achieving 4-4.9% returns. The combination of affordable purchase prices and strong rental demand from families seeking larger homes drives these returns.
Long-term yield trends show the rental market transition from a tenant-friendly environment to a landlord's market, with vacancy rates dropping to historic lows supporting continued yield improvement.
What are the population growth rates by suburb, and what's projected for the next 10 years?
Melbourne's fastest population growth is concentrated in outer "growth corridor" suburbs, with Wyndham leading at 4.2% annual growth in 2024.
Growth corridor suburbs including Wyndham (Werribee), Melton, Tarneit, Officer, Rockbank, and Cranbourne are experiencing the strongest population increases due to new housing developments and infrastructure investment. Projections indicate these areas will maintain 2-3% annual growth over the next decade.
The state government's plan for 180,000 new homes over the next decade will concentrate much of this growth in areas like Beveridge North West, Sunbury, and major suburban PSP (Precinct Structure Plan) zones. This planned development supports sustained population growth in targeted corridors.
Inner and mature suburbs show slower or negative growth due to limited new housing supply and higher property costs. While these areas maintain economic importance, population growth is constrained by development limitations and affordability challenges.
Western and northern growth areas benefit from coordinated infrastructure development, including transport links and community facilities, supporting sustainable population growth over the coming decade.
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How many new housing developments or construction projects are planned in each area?
Victoria's ambitious housing development program targets 180,000 new homes state-wide over the next decade, with Melbourne's growth corridors receiving the majority of new construction.
Major development hotspots include Sunshine, Preston, Broadmeadows, and Melton, all benefiting from government rezoning initiatives and infrastructure investment. These areas are designated as priority development zones with streamlined approval processes.
The Beveridge North West and Sunbury areas represent mega-development projects, with plans for entirely new communities including residential, commercial, and community facilities. These developments will create thousands of new dwellings over the next 5-10 years.
Growth corridor suburbs like Wyndham, Melton, and Casey have extensive residential development pipelines, with multiple large-scale projects in various stages of planning and construction. The coordination between state government, councils, and developers ensures sustained construction activity.
Inner suburban development focuses on medium-density infill projects, with areas like Richmond, Fitzroy, and South Melbourne seeing apartment and townhouse developments rather than greenfield housing estates.
What's the current vacancy rate for rentals in each suburb?
Melbourne's rental vacancy rate sits at historically low levels of 1.7% citywide as of September 2025, indicating a strong landlord's market across most suburbs.
Growth corridor suburbs maintain even tighter vacancy rates of 1-2%, with outer west, north, and new estates in areas like Melton, Craigieburn, and Werribee experiencing the most acute rental shortages. This reflects strong rental demand from families and workers moving to these developing areas.
Inner suburbs also show low vacancy rates, though student and professional areas may experience slightly higher seasonal variation. The concentration of employment and education facilities maintains consistent rental demand in these locations.
Investment-focused suburbs typically maintain vacancy rates below 2%, providing investors with confidence in rental income stability. The combination of population growth and limited rental supply supports this tight market condition.
The 0.4% increase in vacancy from the previous year represents marginal improvement but remains well below the 3% rate typically considered balanced between landlord and tenant interests.
What's the average household income in these suburbs compared to the citywide average?
Melbourne's average household income of $105,399 masks significant variation across suburbs, with premium areas earning double the income of outer growth suburbs.
| Suburb | Average Household Income | Comparison to Melbourne Average |
|---|---|---|
| Toorak | $142,000 | +35% above average |
| Albert Park | $114,721 | +9% above average |
| Brighton | $117,468 | +11% above average |
| Malvern | $105,399 | Equal to average |
| Affordable suburbs | $50,000-$70,000 | -25% to -50% below average |
| Growth corridors | $70,000-$90,000 | -15% to -25% below average |
What's the unemployment rate and job growth trend in these areas?
Greater Melbourne's unemployment rate of 4.2% as of July 2025 reflects a relatively healthy job market, though significant variation exists across suburbs.
Western and northern suburbs experience higher unemployment rates, with some areas reaching 7-10% in specific pockets. However, these same areas are benefiting from major infrastructure projects creating construction and ongoing employment opportunities.
Job growth is strongest in healthcare, education, and construction sectors, directly supporting suburbs with major infrastructure development. The Suburban Rail Loop and Airport Rail Link projects are generating significant employment in affected corridors.
Growth corridor suburbs benefit from both construction employment during development phases and ongoing service sector jobs as communities establish. Areas like Wyndham and Melton are seeing employment growth aligned with population increases.
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How do infrastructure projects, like new transport links or schools, map onto these suburbs?
Melbourne's major infrastructure investments are concentrated in outer growth corridors, directly supporting property investment opportunities in these areas.
The Suburban Rail Loop represents the most significant transport investment, connecting growth corridors and improving accessibility to employment centers. This project particularly benefits outer western, northern, and southeastern suburbs with direct stations and improved connectivity.
The Melbourne Airport Rail Link will transform accessibility for northern and western suburbs, reducing travel times to the CBD and airport. Suburbs along this corridor are likely to see significant property value appreciation as construction progresses.
The West Gate Tunnel and Metro Tunnel projects improve connectivity for western and inner suburbs respectively, supporting both residential and commercial property demand in affected areas.
Education infrastructure accompanies residential development, with new schools planned in growth areas like Beveridge North West, Sunbury, and major PSP zones. Healthcare facilities and community centers follow similar patterns, supporting long-term liveability.
Local infrastructure upgrades including station improvements, road networks, and utility services are concentrated in the same growth corridors receiving major residential development.
What's the crime rate trend in each area compared to the Melbourne average?
Melbourne's crime rates show clear patterns, with CBD and inner urban areas experiencing higher crime rates while outer suburban growth areas maintain significantly lower levels.
Highest crime rate areas include Melbourne CBD, Yarra (Richmond, Fitzroy), Dandenong, St Kilda, and Brimbank, reflecting the concentration of nightlife, social services, and higher population density. These areas experience crime rates well above the Melbourne average.
Outer suburban growth areas and established eastern suburbs like The Patch and Park Orchards maintain much lower crime rates, making them attractive for families and investors focused on capital growth rather than immediate rental yields.
Overall crime trends show a 2-10% year-on-year increase citywide, though the impact is less severe in affluent and outer suburban areas. The safest suburbs continue to maintain their relative security advantage.
Growth corridor suburbs generally experience low crime rates due to newer development, family-oriented communities, and strong community planning. This supports their appeal for both owner-occupiers and investors.
What are the average days on market for properties sold in these suburbs?
Melbourne's median days on market averages 35-38 days for both houses and units as of September 2025, indicating a reasonably active property market.
High-demand suburbs, particularly in growth corridors and well-located inner areas, often sell within the median timeframe or faster. Premium suburbs with limited supply may also experience quick sales despite higher price points.
Suburbs with oversupply or reduced demand average 60+ days on market, with some unit markets like Laverton showing extended selling periods of 100+ days. These areas may present opportunities for negotiation but require careful analysis of underlying demand factors.
New development areas may experience variation in selling times depending on completion stages and competing supply. Established suburbs with consistent demand maintain more predictable selling periods.
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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 clear opportunities for different investor profiles, from high-yield CBD units to capital growth in outer growth corridors.
The combination of infrastructure investment, population growth, and rental shortage creates a supportive environment for property investment across multiple Melbourne submarkets.
Sources
- Real Estate Australia - Melbourne House Prices
- OpenAgent - Melbourne Property Market
- Savings.com.au - Rental Yield Victoria
- OpenAgent - Melbourne Household Incomes
- Australian Bureau of Statistics - Labour Force
- Victorian Planning Authority - Growth Corridor Plans
- North Removals - Melbourne Suburbs Crime
- Real Estate Australia - Days on Market
- Shape Property Group - Inner Suburb Performance
- OpenAgent - Cheapest Melbourne Suburbs