Best Suburbs to Invest in Melbourne for 2025

Here are the top Melbourne suburbs to invest in 2025, with something for everyone. Key areas have strong rental yields, rising values and good amenities for steady returns.

Inner and middle ring suburbs have family friendly environments with parks and top schools. Affordable growth suburbs have new infrastructure, affordability and high demand for steady investment.

Emerging suburbs have vibrant communities, unique features and gentrification driven growth. These areas are good for first home buyers, families and seasoned property investors.

Inner and Middle Ring Suburbs

Melbourne’s suburban market is set to continue growing in 2025 with a mix of family friendly suburbs, gentrifying areas and stable middle ring suburbs. Here we look at the key investment suburbs, recent trends, market data and unique features that make these areas hot spots.

Glen Waverley: A Family Focused Suburb with Growth

Top Ranked Schools Driving Demand

Glen Waverley has some of Melbourne’s best schools, including Glen Waverley Secondary College, one of the top 10 in Victoria. Being close to these schools has driven up property demand with families making up 78% of owner occupiers as of 2024.

Median House Price Rising

The median house price in Glen Waverley was $1.72 million in 2024, up 5.8% from the previous year. This steady growth is due to the suburb’s enduring popularity, especially with buyers looking for stability and long term investment.

Close to Melbourne CBD

Just 19km from Melbourne’s CBD, Glen Waverley has easy transport options including regular trains and major roads. This makes it popular with professionals who work in the city and want to live in the suburbs.

Amenities and Lifestyle

The Glen Shopping Centre is the hub of Glen Waverley’s retail and lifestyle, with over 240 stores, dining and entertainment options. With low crime rates, this suburb is popular with families and young professionals.

High Rental Demand

Rental demand is strong in Glen Waverley with vacancy rates at 1.2% in 2024. Weekly rents are $620 for houses, giving investors steady cash flow and high tenant retention.

Blackburn: A Green Suburb with Growth

High Owner Occupier Rate

Blackburn’s 82% owner occupier rate is due to its family friendly reputation. Buyers love the suburb’s quiet streets and community feel, so there’s steady demand and limited supply of properties for sale.

2024 Price Growth

Median house prices in Blackburn rose 6.2% in 2024 to $1.46 million. Apartments also grew with the median price now at $650,000.

Close to Parks

Blackburn has plenty of parklands including Blackburn Lake Sanctuary and Gardiners Creek Trail. These natural assets make the suburb liveable for families and outdoor lovers.

Education and Lifestyle

Blackburn is close to top schools like Blackburn High School and Nunawading Christian College so it’s a drawcard for families. Forest Hill Chase is also a retail hub for residents and investors.

Stable Rental Market

The rental market is strong with a 2.1% vacancy rate as of late 2024. Median rents have risen 4% year on year to $580 per week for houses and $450 for apartments.

Preston and Reservoir: Northern Suburbs on the Up

Affordable Entry Points

Preston and Reservoir are still attracting buyers looking for affordable alternatives to inner city suburbs. The median house price in Preston is $960,000 and in Reservoir is $810,000 so there are entry points for first home buyers and investors.

Infrastructure Boosting Value

Major infrastructure projects like the North East Link and Preston Market redevelopment have revitalised these suburbs. Improved transport connections have made the area more accessible and is driving property demand.

Culture and Food

These suburbs are cultural hotspots with vibrant food scenes featuring multicultural restaurants, cafes and artisan markets. These amenities make Preston and Reservoir liveable for young professionals and families.

Rental Yield

Rental yields are 4.2% in Preston and 4.6% in Reservoir, beating many inner city areas. Weekly rents are $470 for houses and $410 for apartments so strong returns for investors.

Population Growth and Gentrification

Preston and Reservoir are gentrifying fast with a 9.5% population growth since 2020. Younger demographics including professionals and creatives are reinvigorating these suburbs into modern and desirable areas to live and invest.

Essendon: Lifestyle Suburb

High End Options

Essendon has a mix of period and modern homes with a median house price of $1.4 million in 2024. This variety attracts affluent families and professionals looking for lifestyle properties.

Close to Melbourne CBD

Just 10 km from Melbourne’s CBD, Essendon is a commuting dream for city workers. Public transport options including train and tram make it easy and convenient.

Strong Rental Market

Rental yields in Essendon are steady at 3.8% with median weekly rents of $550 for houses and $430 for apartments. Vacancy rate is extremely low at 1.3% so strong tenant demand.

Top Education

Top schools like Penleigh and Essendon Grammar School make the suburb desirable. Families choose Essendon for its education and community.

Lifestyle and Leisure

Essendon has a great selection of cafes, boutiques and recreational facilities including Windy Hill Fitness Centre. The Maribyrnong River and nearby parks make the suburb liveable and balanced for residents.

Affordable Growth Suburbs

Melbourne’s affordable growth suburbs offer affordability, lifestyle amenities and long term growth. With strong demand driven by new housing, infrastructure and recreational spaces these areas are perfect for families and first home buyers. Here are the suburbs to watch in 2025.

Melton South: Growth Area

Affordable with Growth

Melton South is an affordable entry into the Melbourne market with a median house price of $540,000. Recent developments and new infrastructure is driving demand particularly among first home buyers and investors.

Better Connected

Upgraded Melton train station has frequent services to Melbourne CBD so it’s a commuter friendly suburb. Improved roads mean easy access to employment hubs and shorter travel times make it a winner for city workers.

Schools and Shops

Melton South has several schools including Staughton College, so it’s perfect for families with young children. The growing retail precinct with supermarkets, dining and local businesses means convenience. Affordable education and community feel makes it liveable and family friendly.

Ongoing Development

Melton South is growing with new housing estates, parks and community centres. These projects are making it a vibrant hub and increasing property values and lifestyle. Ongoing infrastructure investment means demand and prices will continue to grow.

Strong Rental Market

Investors in Melton South get rental yields of 4.6% with weekly rents of $400 and low vacancy rate. The suburb is affordable and growing so steady cash flow and long term rental returns. The stable rental market means consistent income for investors.

Pakenham: Affordable and Growing

Steady Price Growth

Pakenham’s median house price of $590,000 is affordable with growth. Property values have been rising so buyer confidence is high. The suburb has modern amenities so first home buyers and investors are flocking so long term returns with balance of affordability and rising prices.

Natural Beauty and Outdoor Lifestyle

Pakenham is a peaceful environment with Cardinia Lakes, scenic views and recreational spaces. Plenty of parks and walking trails means it’s perfect for families who love the outdoors. The peaceful feel combined with strong connection to Melbourne makes it attractive.

Schools for Families

Pakenham is family focussed with Pakenham Secondary College and several early learning centres. The focus on education drives demand and owner occupier rates. The suburb’s good schools and community living makes it long term attractive.

Better Connected

Pakenham’s upgraded train line means easy access to Melbourne CBD and shorter commute times. Well planned roads mean easy access to regional employment hubs. These transport upgrades makes Pakenham perfect for city workers looking for affordable housing and increasing its liveability and investment.

Strong Rental Market

Pakenham gets rental yields of 4.2% with weekly rents of $420 for houses so steady returns for investors. Low vacancy rate and strong tenant demand from families and professionals means a stable rental market. Growing population means consistent cash flow and long term investment.

Caroline Springs: Family Friendly and Popular

Growing House Prices

Caroline Springs has seen property values rise with a median house price of $720,000 in 2024. Ongoing development and proximity to services means families and investors are flocking so long term growth and popularity.

Modern Facilities and Amenities

Caroline Springs has great infrastructure, the Caroline Springs Shopping Centre, recreational facilities, schools and modern healthcare. All the amenities and public transport options means it’s perfect for families so convenience and overall appeal.

Close to Melbourne CBD

Caroline Springs 23km from Melbourne CBD has good road links and access to the Western Freeway. The nearby train station means commuting options for professionals who want suburban living with city access.

Recreational and Lifestyle

Caroline Springs has parks, lakes and green spaces like Lake Caroline and Kororoit Creek Trail. These natural attractions means outdoor activities so it’s perfect for families and those who want a balanced lifestyle.

Strong Rental Demand

Caroline Springs has a healthy rental market with 4.1% yields and weekly rents of $450 for houses. Strong demand from families and professionals means low vacancy rate and steady returns so it’s a good choice for investors.

Tarneit: On the Move

Affordable with Growth

Tarneit has a median house price of $580,000 in 2024 so perfect for first home buyers and investors. New housing estates and retail developments means growth and affordability as infrastructure rolls out.

Good Transport Links

Tarneit has great transport with an upgraded train station to Melbourne CBD in under 30 minutes. Good roads means it’s popular with commuters looking for affordable housing.

Schools for Families

Tarneit is family focused with schools like Tarneit P-9 College and childcare centres attracting young families. Its strong educational focus means high owner occupier rates so it’s appealing to families and investors.

Affordable Amenities and Shopping

Tarneit has shopping centres like Tarneit Central so convenient retail, dining and cafes. Parks, recreational areas and fitness centres means the suburb has a high quality active lifestyle.

Strong Rental Market

Tarneit has a solid rental market with 4.5% yields and weekly rents of $400 so good returns for investors. Strong demand from tenants and limited supply of rental properties means Tarneit is a great place for investors looking for steady rental income.

Wyndham Vale: Growing Demand and Future Growth

Affordable Market

Wyndham Vale has a median house price of $570,000 so it’s affordable and has strong investment potential. Steady demand from first home buyers and investors means long term growth.

New Infrastructure

The upgrade of Wyndham Vale train station and Wyndham Village Shopping Centre means greater accessibility so it’s more popular with families and professionals. This will only mean more growth and appeal for the area.

Close to Nature and Recreation

Wyndham Vale has parks and nature reserves like Werribee River Trail and Presidents Park so outdoor activities like walking and cycling. These green spaces and recreational facilities means it’s perfect for families.

More Local Amenities

Wyndham Vale’s growth means more amenities like schools, shopping centres, medical services and community facilities. This focus on convenience and community means it’s a liveable area so it’s great for property investors.

Good Yields

Wyndham Vale has 4.3% yields with weekly rents of $420. Steady returns and low vacancy rates means it’s a solid investment with continued growth means strong demand for rental properties.

Cranbourne: More Amenities

Affordable Options

Cranbourne has affordable housing with a median price of $620,000 so it’s perfect for first home buyers and investors. Ongoing development and infrastructure means the suburb will keep growing in value.

Close to Major Employment

Cranbourne is close to Dandenong South and has good roads and public transport. It’s affordable and close to work hubs so it’s popular with commuters.

More Community Amenities

Cranbourne is getting more amenities like Cranbourne Park Shopping Centre, schools, parks and healthcare facilities. This means more appeal for families and overall liveability.

Transport and Accessibility

The upgraded Cranbourne train station means a direct link to Melbourne CBD and good roads means better accessibility. More transport options means Cranbourne is more popular with commuters and families.

Strong Rental Demand

Cranbourne’s rental market is performing well with 4.1% yields and weekly rents of $410. As the suburb grows the rental market will remain strong so good returns for investors.

Rockbank: Growth Potential

Affordable Prices

Rockbank has affordable prices with a median house price of $560,000 so it’s a good option for investors. Affordable prices and emerging projects means the suburb will grow big in the next few years.

Commuter Heaven

27km from Melbourne CBD, Rockbank has good transport options including access to Western Freeway and Rockbank train station. More affordable housing options outside the city means Rockbank is a popular choice for commuters.

More Infrastructure and Amenities

Rockbank is growing fast with new housing estates, schools and shopping centres. More community facilities means more appeal and these developments will drive property growth and more residents.

Close to Nature and Recreation

Rockbank has parks and nature reserves for outdoor activities like hiking and birdwatching. Connection to nature and emerging infrastructure means a balanced lifestyle so it’s perfect for families and those who want peace and quiet.

Good Rental Yields

Rockbank has 4.3% yields with weekly rents of $410 for houses. Affordable prices and growing demand means it’s a solid investment as development happens.

Emerging Suburbs with Character

Emerging suburbs in Melbourne have affordability, rapid growth and unique lifestyle. Growing demand from cultural diversity, green spaces and good connectivity means these areas will grow long term. Here are the suburbs to watch in 2025.

Box Hill: For Professionals and Families

Gentrification and Development

Box Hill is growing fast with new infrastructure and residential projects so it’s an investment opportunity. The demand is for both residential and commercial properties.

Easy Public Transport

Box Hill has great connectivity to Melbourne CBD with a major train station and many tram and bus routes. Commuting is easy for residents so more appeal.

Best Schools and Amenities

Box Hill has many good schools and diverse range of retail and dining options. These amenities cater for families and professionals so it’s growing.

Strong Rental Demand and Yield

Rental demand in Box Hill is high with vacancy rates under 2%. Median rents for houses are $600 per week so investors get good returns and long term growth.

Good for Future Investment

The ongoing development and Box Hill’s location and strong local economy means it’s a good area for future property investment.

McKinnon: Family Focused and Growing

Family Friendly

McKinnon has tree lined streets and family oriented community, top schools and parks. Peaceful so good for long term investment.

Close to Melbourne CBD

14 km from CBD, McKinnon has public transport and major roads so it’s easy to get to the city. Close to the city means it’s popular with professionals.

Capital Growth

McKinnon’s median house prices have grown 6% per annum over the last few years. Investors can expect more capital growth in the future.

Local Amenities

The suburb has shops, cafes and recreational facilities. With good local amenities McKinnon attracts investors and residents who want convenience.

Low Vacancy Rates

McKinnon’s rental market is strong with vacancy rates under 2% so investors get high tenant retention and consistent rental income.

St. Helena: Peaceful and Growing

For Families Who Want Space

St. Helena has big homes and big blocks so it’s popular with growing families. Peaceful and close to schools means it’s a family paradise.

Growing Demand for Residential

As demand for housing in the area grows property prices are increasing so St. Helena is a good area for long term investors looking for good returns.

Green Spaces and Parks

The suburb is beautiful with many parks and reserves so it’s popular with outdoor lovers and families who want peace.

Community Spirit

St. Helena is a tight knit community with a strong local culture so it’s a good place to live. The community feel adds to the appeal.

High Demand and Yield

Low vacancy rate and high demand means St. Helena has good rental yields. Investors can get steady returns in a family friendly suburb.

Coburg: Growing and Diverse

Growth and Development

Coburg is a development hotspot with new residential projects and infrastructure making it more liveable. The growth means it’s a good investment.

Transport

Coburg has train and tram to the CBD so it’s popular with professionals and students so demand for rental properties is high.

Cultural Scene

Coburg’s multicultural community is reflected in its restaurants and cultural activities. The diverse local scene means it’s popular with young professionals and families.

Rising Prices

Coburg’s median house price has grown over the last few years so the area is getting more popular. Investors can expect strong capital growth.

Strong Rental Market

Coburg’s rental market is strong with vacancy rates under 2%. Renters want the affordable properties and proximity to Melbourne so there’s high tenant demand.

Heidelberg: Natural Beauty and Growth

Urban Development

Heidelberg is undergoing rapid urban development with new residential and commercial projects so it’s an exciting place to invest.

Close to CBD

Heidelberg has good public transport with a major train station and easy access to the CBD so it’s popular with city workers who want suburban living.

Green Spaces

With many parks, reserves and the Yarra River nearby Heidelberg is a peaceful place to live. The natural beauty makes it a great place to live.

Families and Retirees

Heidelberg’s peacefulness and local amenities means it’s popular with families and retirees. The calmness adds to its growing appeal for investors.

Capital Growth

Recent data shows Heidelberg’s prices are rising so it’s a good suburb for long term investment. The development projects mean strong future returns.

Footscray: Urban and Growing

Urban Renewal and Growth

Footscray has had rapid urban renewal with major infrastructure and residential projects so it’s a hot investment suburb.

Diverse Community and Culture

Footscray’s multicultural community is reflected in its cultural and food scene. The diversity means it’s popular with young professionals and families.

Close to CBD

5 km to Melbourne CBD with train and tram access so it’s popular with city workers and investors.

Rental Demand and Yield

Footscray’s rental market is strong with houses averaging $500 per week. High tenant demand and low vacancy rates means high rental yields for investors.

Capital Growth

Footscray’s property market has grown significantly with house prices rising. With urbanisation and demand growing Footscray is a long term investment.

Originally Published: https://www.starinvestment.com.au/melbourne-suburbs-best-investment-2025/