Emma Norris - 19 Jul, 2021
There’s just something about Melbourne. Despite experiencing some of the nation’s most volatile conditions around COVID-19, Victoria’s capital was once again named one of the world’s top 10 most liveable cities of 2021. While it wasn’t at the top of the list as it has been in previous years, it’s a testament to the resilience of this vibrant city.
While Melbourne experienced continued turbulence throughout 2021, its property market has bounced back remarkably. In fact, property prices have hit a record high of over $1 million in 2021. This upwards growth trajectory is expected to continue in the near future. Couple this with low-interest rates and grants for first-time buyers, and it’s clear that there are plenty of opportunities for those looking to buy in Melbourne.
But, where exactly should you buy a home in Melbourne? After all, each suburb in this sprawling city has its own unique flavour and comes with its own benefits and drawcards. To help you make an informed decision, we’ve put together a guide to the most popular suburbs in Melbourne to live and buy.
If Melbourne is known for one thing, it’s liveability. From the easy-to-navigate layout to the excellent transport infrastructure and exciting dining scene, it all makes for an enviable lifestyle.
That said, Melbourne is made of up of many difference nooks and crannies. If you’re looking for a mix of growth, affordability, and lifestyle, the best suburbs to live in may not be one if you’re ever heard of before!
Here are 10 of Melbourne’s top up-and-coming suburbs that should be on your radar.
Sitting on the banks of the Maribyrnong River and only 9 km northwest of the CBD, Aberfeldie is in high demand. This leafy suburb is particularly popular with families, due to the density of great schools and parks in the area. Here, the median property price is $1,652,500.
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This charming suburb offers a small-town feel, while only being 14 km east of the CBD. Here, the average house will set you back $1,525,000 — a median price which has increased by 21% year-on-year. With a respectable 2.22% rental yield, a property here can be both a good short and long-term investment.
Another Melbourne suburb on the rise is Hughesdale. Situated 15 km southeast of the city, this history-rich suburb has a median house price of $1,362,000. Seeing a year-on-year growth of 28%, it’s emerged as the hidden gem of the Melbourne property market. With a large shopping centre, great transport links and spectacular period homes, there’s plenty on offer here.
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If you’re looking for somewhere to invest in the inner-city, Kensington is a strong contender. Located just 4 km north-west, it’s just a stone’s throw away from all the action. With a median house price of $1,269,000, values have been steadily rising by 23%. It’s not hard to see why this postcode is in hot demand!
While this inner-city suburb is best known for its football club, there’s also plenty of opportunities for investors and owner-occupiers. With a median house price of $1,140,000, Collingwood is primed for excellent growth. It’s seen a year-on-year growth of 30% and delivers one of Melbourne’s best rental yields of 3.4%.
If you’re looking for a bargain with strong growth potential, you can’t go past Tyabb. This suburb boasts large homes with a median house price of $895,000, and an impressive year-on-year growth of 47%. The rental yield here is also one of the highest in Melbourne, sitting at 3.98%. While it’s located 55 km south of the CBD, it has plenty of infrastructure and cafes to make up for it.
This popular suburb is another Melbourne proeprty hot spot. Caulfield is located 12 km southeast of the CBD, and offers some of the best transport links via train and tram into the city. Many of the villa-style houses here make for great investment options, with a median house price of $1,598,000.
For those searching for the perfect lifestyle property, you’ll likely find it here. Located just 9 km southeast of the city, Elsternwick is a suburb that offers a little bit of everything. Not only is it in proximity to the CBD and beach, but there’s plenty of great schools, cafes, and amenities in the area. With a median price of $1,950,000, you’ll pay for the privilege — but in this high-demand area, there’s plenty of potential for long-term growth.
If high compound growth rates are what you’re after, McCrae might have your name on it. Located an hour south of the Melbourne city in the Mornington Peninsula, it’s not the most accessible suburb. But, the annual growth rate of 24.3% speaks for itself. With all the convenience in the area and proximity to the beach, many locals find there no need to trek back into the city. Here, the median house price is $1 million, with a rental yield of 2.3%.
Looking for somewhere to settle for the long-term? Ormond has plenty to keep you around — as evident by the fact that roughly 59% of properties here are owner-occupied. Situated 12 km southeast of the CBD, it attracts a mix of families and young people. Here, major drawcards include cafes, shops, supermarkets, and great primary and high schools. The median house price sits at $1,452,500 currently.
These suburbs are a great starting point for helping you find the best place to buy a property in Melbourne. But, as everyone’s needs and preferences are so individual, it’s important to do your own further research to find the best suburb in Melbourne for you.
While Melbourne certainly isn’t the cheapest place in Australia to buy a home, there are still certain areas where you can find a good bargain.
The most affordable place to buy within 10 km of the Melbourne CBD the leafy suburb of Maidstone. Here, a house will set you back $723,500 on average, and it’s only a short, 30-minute bus ride into the CBD. The buzzing area of West Footscray is also on the more affordable side for the inner-city, with a median house price of $800,000, or $390,000 for a unit.
If you’re willing to venture a little further outside the city, you can snap up a home for just $513,500 in Albanvale. Located 20 km north of the CBD, Melbourne’s cheapest suburb offers an abundance of space — making it popular with families.
For those looking to buy in the north, there’s plenty of options, too. Located 16 km north of the CBD, Broadmeadows offers a budget-friendly median price of $550,000. A couple of suburbs over, Meadow Heights offers a comparable house price of $555,500.
For those whose money is burning a hole in their pocket, there’s no shortage of places to splash your cash in Melbourne. 5 km southeast of the CBD, you’ll find Melbourne’s most expensive suburb, Toorak. With a median house price of $3.1 million, this area is known as the Beverly Hills of Melbourne. Here, you’ll find large, stately houses with manicured gardens, fine dining restaurants, and designer couture boutiques.
Also in Melbourne’s top most expensive suburbs is the coastal suburb of Brighton. Here, a house in one of its leafy suburbs cost you an average of $2.4 million. Not only that, but even one of the small-yet-iconic beach boxes on Brighton Beach will cost $300,000 — which is more than an apartment or house in some other capital cities. Other affluent suburbs in Melbourne include East Melbourne near the CBD and the picturesque suburb of Malvern.
This information is a guide only and is an estimate only based on the past 12 months of aggregated online mortgage enquiries from eChoice and partner programs.
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For a large capital city, Melbourne has a safe and friendly feel to it. In fact, the Safe Cities Index ranked Melbourne among the top 10 safest cities in the world.
There’s a flip side to everything and just as Melbourne has its safer suburbs, it also has those with higher crime rates. Data from the RACV shows that Melbourne’s western suburbs are typically the most dangerous, including suburbs like Braybrook, Braybrook North, and Robinson.
However, it’s not just the outskirts of Melbourne that has higher-than-average crime levels. Unfortunately, aggravated burglaries recently reached a 10-year high in some inner east suburbs. This includes Morwell, Malvern East and Fitzroy North. That’s not to say these suburbs should be avoided at all costs. However, be sure to do your research on the street and invest in security equipment if you are considering buying a home in these areas.
The answer to the question ‘how much does it cost to buy in Melbourne?’ really depends on what you’re looking for! In some of the city’s outskirts suburbs like Melton, Officer, and Albandale, you can find homes that are as affordable as $400,000. However, on the other end of the spectrum, you can find properties that exceed well over $3 million in affluent suburbs like Toorak and Middle Park.
Overall, Melbourne’s median property price in 2021 recently reached over the $1 million mark for the first time. REIV’s quarterly report for March showed the median price for a house in metropolitan Melbourne hit $1,004,500. This was an increase of 8.8 per cent from the previous quarter — the largest quarterly increase the city has seen since 2009. Meanwhile, the median price of a unit in Melbourne in 2021 sits strong at around $485,000.
That said, the higher prices don’t mean that the property market is any less competitive currently. In fact, there’s been unprecedented buyer interest across Australia, this year reaching a six-year high of 35,000 transactions in a quarter.
Words by Emma Norris
If you’re thinking about breaking into Melbourne property market, it’s wise to work with an experienced mortgage broker. They will be able to help you navigate the process with ease and compare the many different home loans on the market. With access to hundreds of mortgage products from over 25 different lenders, eChoice can do all the heavy lifting and help you find the best possible deal to suit you. They’ll even do your paperwork!