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
Are you considering investing in Melbourne's real estate market? Curious about which neighborhoods will offer the best returns in 2025? Want to know where the next property hotspots are?
We will lay down recent insights, ici no guesswork, we rely only on solid data.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Australia Property Pack
1) Frankston attracts buyers with its coastal lifestyle and better transport links to Melbourne
Frankston is becoming a hot spot for buyers thanks to its coastal lifestyle and better transport links to Melbourne.
In recent years, property values in Frankston have jumped, with the median home price climbing from $110,811 USD in 2023 to $129,143 USD in 2024. This upward trend is likely to continue, making Frankston an attractive place to invest.
The Victorian Government is pouring $3 billion into upgrading the Frankston line, which is a game-changer for the area. This project involves removing 18 level crossings and building 12 new stations, which will make commuting to Melbourne much easier and safer for residents.
On top of that, there's a plan to develop over 11 km of new shared use paths along the Frankston line. These paths will connect local beaches and existing walking trails, making it easier for people to enjoy the outdoors and embrace the coastal lifestyle.
These improvements not only boost transport efficiency but also enhance the quality of life, which is exactly what many buyers are looking for. The combination of better transport and a beachside vibe is a big draw.
Frankston's appeal is growing, and with these developments, it's no wonder more people are considering it as a place to call home.
Sources: Wallet Investor, Big Build Victoria, Real Estate News
2) Werribee is booming with major urban projects and affordable prices
Werribee is booming thanks to urban development and affordable property prices.
One of the standout projects is the East Werribee Employment Precinct, which is transforming a massive 775 hectares into a vibrant mixed-use area. This development is set to create over 58,000 local jobs, offering new residential communities, sports facilities, and parks. It's becoming a magnet for families and professionals looking for a balanced lifestyle.
Government investment is a big driver here, with over $100 million poured into infrastructure. The Metro Tunnel and West Gate Tunnel have slashed travel times, making Werribee more accessible to Melbourne's CBD. This connectivity is a game-changer for city workers seeking affordable living options.
When it comes to affordability, Werribee is a standout. The median property prices for 2-bedroom and 3-bedroom houses are quite reasonable, attracting first-time buyers and investors. Even with a slight dip in the market in 2024, Werribee's affordability and growth potential make it a smart investment choice.
Werribee's population is on the rise, driving up housing demand. As more people flock to outer suburbs, Werribee's developing infrastructure makes it a prime spot for investment. Real estate agents are seeing increased buyer interest, and media reports are buzzing about Werribee's potential as a top investment location in 2025.
Sources: VPA, Domain, Domain News, Wyndham Star Weekly
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3) Preston attracts investors as its residential and commercial developments boost property values
Preston is becoming a hotspot for property investors thanks to its rising property values.
In 2023, the median unit price in Preston was $450,000, with a quarterly growth rate of 2.27% and an annual growth rate of 4.65%. This upward trend is expected to continue into 2024, with forecasts predicting growth between 3% and 5.5%. One of the main reasons for this growth is the surge in residential and commercial development projects in the area.
Take the High Street Preston development, for example. This major project includes 292 apartments and several shops, all aiming for a high environmental rating. Set to be completed in early 2026, it's expected to significantly boost the area's appeal. Such developments are not just about adding buildings; they are about creating vibrant communities that attract more people and businesses.
Preston also offers a strong rental yield of 5.20%, which is higher than nearby suburbs like Essendon and Moonee Ponds. This makes it an attractive option for investors looking for good returns. The area's proximity to Melbourne's CBD and major infrastructure projects like the Metro Tunnel further boosts its attractiveness.
Investors are particularly drawn to Preston because of its mix of residential and commercial developments, which are boosting property values. The combination of new projects and strategic location is creating a perfect storm for property growth. It's not just about the numbers; it's about the lifestyle and opportunities that come with living in a well-connected, thriving area.
With its strategic location and ongoing developments, Preston is poised to continue attracting investors. The mix of residential and commercial projects is not only enhancing property values but also transforming the area into a vibrant community. This makes it a compelling choice for those looking to invest in a promising market.
Sources: Property Update, Kapitol Group, Melbourne Property Market Insights
4) Melton is a real estate hotspot with rapid population growth and new housing estates
Melton is quickly becoming a real estate hotspot thanks to its booming population and new housing developments.
In the past year, Melton's population grew by 6.61%, a surge that's driving up demand for homes. This growth isn't just a number; it's a sign of the area's rising appeal. People are flocking to Melton, drawn by its promise of a vibrant community and new opportunities.
To keep up with this influx, Melton is seeing a wave of new housing estates. These developments aren't just about adding more houses; they're about creating neighborhoods that cater to the needs of new residents. It's an exciting time for the area, with fresh housing options popping up to support its expanding community.
But it's not just about homes. Melton is also investing in its transport infrastructure, making it easier for people to get around. The Moving Melton Transport Prospectus is a key part of this, with plans to improve roads, rail, and bus services. This means better connectivity, which is a big draw for both residents and investors.
These infrastructure projects are more than just conveniences; they're essential for Melton's growth. By enhancing accessibility, Melton is positioning itself as a prime location for those looking to invest in real estate. It's a place where the future looks bright, with plenty of potential for growth.
Sources: City of Melton Economic Profile, Moving Melton Integrated Transport Prospectus
5) Sunshine is a hot spot for affordable housing and upcoming transport upgrades
Sunshine is quickly becoming a hot spot for homebuyers due to its affordable housing options compared to Melbourne's pricier inner suburbs.
In recent years, areas like Hawthorn and St Kilda West have seen house prices soar, pushing many buyers to explore more budget-friendly neighborhoods. Sunshine stands out with its lower median house prices, making it an attractive choice for those looking to stretch their dollars further.
Real estate experts are buzzing about Sunshine's potential. The McGrath Report 2025 highlights how regional markets, including Sunshine, are reaping the benefits of increased housing affordability. This makes it a prime spot for first-time buyers and investors alike.
But it's not just about the price tag. Sunshine is set to become even more connected with the planned transport upgrades. The Melbourne Airport Rail Link will transform Sunshine Station, allowing more trains and better access to Melbourne Airport and the city. This is a game-changer for commuters and travelers.
The Suburban Rail Loop is another exciting development, promising to enhance public transport options in the area. This means getting around will be easier and faster, adding to Sunshine's appeal.
With these transport projects on the horizon, Sunshine is not just a place to live; it's a place to thrive. The combination of affordability and improved connectivity is making it a sought-after destination for savvy buyers.
Sources: The McGrath Report 2025, Suburban Rail Loop - Airport, Works begin to rebuild Sunshine Station as part of Melbourne Airport Rail project
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6) Footscray attracts interest with high rental yields and close proximity to Melbourne CBD
Footscray is catching eyes for its impressive rental returns and closeness to Melbourne's CBD.
Investors are buzzing about Footscray because rental yields here are notably high. For example, units in this suburb offer a median rental yield of 5.16%, which is a standout compared to many other areas in Melbourne. This makes it a hot spot for those looking to get more bang for their buck.
Location is another big win for Footscray. It's just 5 km west of Melbourne's Central Business District, making it a breeze for professionals and students to commute. This short distance to the city center adds to its charm as a place to live.
Footscray is also on the rise with some major infrastructure projects. It's been tagged as one of six Central Activities Districts by the State Labor Government. These urban renewal plans are set to transform the area into lively, mixed-use districts, which should boost both livability and property values.
Locals and newcomers alike are excited about the changes. The ongoing developments are not just about new buildings; they're about creating a vibrant community. Footscray's transformation is expected to make it an even more desirable place to call home.
With all these factors in play, Footscray is becoming a top choice for property buyers and investors. The combination of high rental yields, proximity to the CBD, and urban renewal projects is hard to resist. It's a suburb on the move, and people are taking notice.
Sources: Real Estate Investar, Wikipedia, Nguyen Real Estate
7) Thornbury's property prices are rising due to its booming café culture and vibrant community vibe
Thornbury is becoming a hot spot for property buyers, thanks to its booming café culture and strong community vibe.
In recent years, especially in 2023 and 2024, Thornbury's property market has seen a significant rise, with the median house price hitting $1,430,000 and units at $636,500. This surge reflects the suburb's growing allure, drawing in both investors and new residents.
The café culture here is not just vibrant; it's a major attraction. Thornbury hosts lively food truck events featuring favorites like Mr. Burger and Woking Amazing, which add to the area's unique charm. These events are a magnet for both locals and visitors, enhancing the suburb's appeal.
Community spirit is another cornerstone of Thornbury's popularity. Local government initiatives actively support community activities and small businesses, fostering a warm and welcoming atmosphere. Events such as the Vegan Vegout series and the Enchanted Garden Party are well-attended, highlighting the community's enthusiasm.
Thornbury's appeal is further boosted by its strategic location, offering easy access to Melbourne's city center while maintaining a distinctive suburban feel. This balance makes it an attractive choice for those seeking both convenience and a sense of community.
With its thriving café scene and engaged community, Thornbury is not just a place to live; it's a lifestyle choice that continues to draw interest and investment. The suburb's unique blend of urban and suburban elements makes it a standout in the property market.
Sources: Real Estate Appraisal Thornbury VIC 3071, Welcome To Thornbury, 25 Years of Housing Trends
8) Glenroy draws attention for affordable housing and close access to the airport and city
Glenroy is becoming a hotspot for those seeking affordable housing near Melbourne.
In 2023 and 2024, Glenroy's median house price hovered around $750,000, a stark contrast to nearby suburbs like Pascoe Vale and Oak Park, where homes often exceed $1 million. This price gap makes Glenroy particularly appealing to first-time buyers and young families looking to settle down without breaking the bank.
Location is another big draw for Glenroy. It's just 18 km from Melbourne's city center and a quick 15-minute drive to Melbourne Airport. The upcoming Melbourne Airport Rail link promises trains every 10 minutes, cutting travel time to the city center to about 30 minutes. This is a huge advantage for professionals who frequently travel for work.
Public transport in Glenroy is top-notch. The SmartBus route 901 connects residents to Broadmeadows railway station, and from there, it's about an hour to the CBD. With the new rail link, commuting will be even more straightforward, making Glenroy a convenient choice for young families and professionals.
Glenroy's combination of affordability and accessibility is hard to beat. The suburb's proximity to both the airport and the city center is a major plus, especially with the new rail link on the horizon. This makes it an attractive option for those who want the best of both worlds.
As more people discover Glenroy's potential, it's clear that this suburb is on the rise. With its affordable housing and excellent transport links, it's no wonder Glenroy is catching the attention of savvy homebuyers.
Sources: Barry Plant, Wikipedia
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9) Dandenong is a booming market with diverse housing options and strong government investment in the area
Dandenong is a hot market thanks to its diverse housing options and strong government investment.
In recent years, property prices in Dandenong have surged, driven by the need for affordable housing and rising living costs. This upward trend is expected to continue, as experts foresee further price hikes due to strong demand and limited supply.
The area is buzzing with activity, as property sales have steadily increased. The competitive market makes Dandenong a magnet for investors. The local council's efforts, like the Revitalising Central Dandenong project, are enhancing the area's livability and appeal.
Government projects, such as the Cranbourne Line Upgrade, have made public transport more accessible, drawing more people to the area. New housing developments, including Specialist Disability Accommodation, offer a range of living options, adding to Dandenong's charm.
Media coverage has spotlighted Dandenong as a property hotspot, attracting even more buyers and investors. This increased attention is further driving demand, making it a prime location for those looking to invest.
Sources: Cranbourne Line Upgrade - Victoria's Big Build, Dandenong SDA Housing - Bent Architecture, Decoding Melbourne's Real Estate Trends: What to Expect in 2024
10) Reservoir is attracting strong interest due to its large block sizes and redevelopment potential
Reservoir is gaining attention for its large block sizes and redevelopment potential.
People are drawn to Reservoir because it offers a spacious feel compared to pricier nearby suburbs. This is thanks to its large block sizes, which are a big plus for developers eyeing new residential projects. The area around the train station, with its industrial and commercial zones, is also catching the eye of buyers.
The Victorian government is playing a role too. They've cut stamp duty for off-the-plan units and townhouses, which indirectly boosts redevelopment in Reservoir. With streamlined planning processes for multi-storey residential developments, it's clear that local authorities are on board with the changes.
Reservoir's infrastructure is another draw. With three train stations, it's well-connected, making it appealing to both buyers and developers. This connectivity supports the suburb's growth, making it a top choice for those with budgets between $600,000 to $800,000, as noted in media reports.
Gentrification is also a factor, as it has increased property activity since 2023. This trend is evident in the suburb's transformation, with more people looking to invest in the area.
Sources: Savings.com.au, Property Update
11) Coburg property values are soaring due to gentrification and infrastructure upgrades
Coburg is on the rise with property values climbing fast.
Why? Well, it's been spotlighted as one of the Hot 100 suburbs to watch in 2025. This means Coburg is getting a makeover with new community facilities and amenities, making it a magnet for homebuyers. Picture a place where everything you need is just around the corner, from parks to shopping spots.
Then there's the buzz of new businesses and cafes popping up all over Coburg. This isn't just about having more places to grab a coffee; it's about a thriving local economy that makes the area more appealing. People love the vibe, and as more folks move in, property values naturally get a boost.
Let's talk about the people moving in. Coburg is seeing a wave of younger, professional residents. They're drawn to the strong sense of community and the spacious homes that Melbourne offers. This demographic shift is a big deal because it means more demand for homes, which pushes property prices up.
Infrastructure improvements are also playing a part. With better roads and public transport, getting around is a breeze, making Coburg even more attractive. It's not just about getting from A to B; it's about enhancing the overall living experience in the suburb.
All these factors together are creating a perfect storm for property appreciation in Coburg. It's a place where people want to live, work, and play, and that's why it's catching the eye of savvy investors and homebuyers alike.
Sources: Domain, Realestate, OpenAgent
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12) Brunswick's real estate market is booming with strong rental demand from its vibrant arts and culture scene
Brunswick is a real estate hot spot because of its strong rental demand driven by a vibrant arts and culture scene.
Young professionals and students flock to Brunswick for its lively cultural atmosphere, which keeps the rental market buzzing. The area is known for its low vacancy rate of just 1.5%, a clear sign of high demand. This is partly due to Melbourne's growing population and the appealing lifestyle Brunswick offers.
Brunswick's cultural vitality is evident in its bustling cafes, restaurants, and bars, which are favorites among locals and visitors alike. This lively scene not only attracts renters but also boosts property values, making Brunswick a sought-after location for buyers too.
Media coverage often highlights Brunswick as a cultural hub, with local newspapers and real estate websites frequently discussing its popularity. This attention, along with testimonials from real estate agents, emphasizes the area's desirability and strong property demand.
In recent years, Brunswick has seen a rise in property prices, reflecting its popularity. For instance, the median house price in Brunswick West increased by 4.5% from June to September 2024, showcasing the area's growing appeal.
Brunswick's arts and culture scene is a major draw, making it a vibrant place to live and invest. The area's reputation as a cultural hotspot continues to attract a diverse group of renters and buyers, keeping the real estate market thriving.
Sources: Melbourne Property Market Insights and Trends 2024-2025, Top Growth Suburbs by Median House Price, Testimonials | Greystone Real Estate
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.