Top 10 Growth Suburbs in Melbourne for 2025 – Investment Hotspots Revealed

This article reveals the top 10 Melbourne suburbs for 2025, with property value trends and investment insights.

Read about the key drivers of growth – rental yields, transport and infrastructure – that make these suburbs great for buyers and investors.

Whether you’re looking for long term capital growth or strong rental returns these suburbs are for homebuyers and investors in Melbourne’s hot market.

Bentleigh: A Great Suburb for Families and Investors

Market Trends

• House and Unit Prices Median house price: $1,625,000 Median unit price: $595,000 House prices have dropped -3.23% over the last year, units have grown 1.81%. Bentleigh is a balanced market with a range of buyers.

• Rental Market Rental yields: Units 4.8%, Houses 2.56% Vacancy rate: 0.87% Unit rents have grown 11.11% per annum, it’s a hot leasing market.

• Regional Comparison Neighbouring suburbs with similar amenities and price points to compare. Investors can consider Bentleigh’s moderate growth against the broader Melbourne market.

Transport and Accessibility

• Direct to Melbourne CBD 14km to Melbourne CBD Bentleigh Station has a rail link and the Nepean Highway has direct road access. Perfect for professionals and families.

• Local Transit Well connected bus routes and bike friendly infrastructure. Upcoming transport projects will further improve Bentleigh’s accessibility and make it an even more attractive long term for residents and investors.

Education

• High Performing Schools McKinnon Secondary College is a major drawcard for families to the area. Properties within the school zone command a premium, demand for this top school is high.

• Emerging Educational Options The rise of private and specialty schools in the area adds to Bentleigh’s educational diversity so it remains a family friendly destination.

Lifestyle and Amenities

• Retail and Dining Close to Southland and Chadstone shopping centres, Bentleigh is convenient and lifestyle focused. Local cafes and gourmet restaurants cater to all demographics.

• Parks and Recreation The suburb’s parks and facilities contribute to a high quality of life. Allnutt Park and Halley Park are great for families and fitness enthusiasts.

Demographics and Growth

• Population 16,155 population and growing, young families and professionals seeking a balanced urban lifestyle. This demographic shift is driving gentrification and demand for new housing.

• Infrastructure and Community Investment Community focused amenities such as upgraded public spaces and roadworks are improving Bentleigh’s long term liveability.

Growth

• Capital Growth Despite the recent market correction, Bentleigh’s location and fundamentals will deliver moderate growth over time.

• Rental Returns Low vacancy rates and rising rents means investors can get consistent returns, especially in the unit market. Bentleigh is a safe bet for property investment.

Bentleigh has it all, accessibility, education and lifestyle, it’s the top choice for Melbourne’s families and property buyers.

Glen Waverley: Rising for Buyers and Investors

Market Snapshot

• House and Unit Prices Median house price $1,460,000, unit price $760,000. Houses down -2.5%, units up 4.2%. A market for all buyers.

• Tenant Demand Rental yields in Glen Waverley are competitive, units 4.3%, houses 2.8%. Vacancy rate 1.1%. Unit annual rent up 7.9%. A strong rental market.

• Inter-Suburb Comparison Glen Waverley is ahead of Mount Waverley and Wheelers Hill which have similar amenities and price trends. Investors can compare Glen Waverley’s growth and rental performance to these suburbs to make an informed investment decision.

Transport and Commute

• Close to Melbourne CBD 19 km southeast of Melbourne CBD. Glen Waverley Station and the Monash Freeway make it a commuter’s dream.

• Public Transport More public transport improvements coming, additional bus routes and roadworks. This will further enhance the suburb’s connectivity and long term appeal.

Education

• Top Schools in the Area Glen Waverley is known for its great schools, Glen Waverley Secondary College and Wesley College, families want to live close to good schools. Properties in these zones command a premium, that’s how much demand there is for school proximity.

• More Educational Facilities New schools and educational institutions are adding to Glen Waverley’s appeal for families. With more options available, the suburb is attracting those who put education at the top of their location list.

Lifestyle and Amenities

• Shops and Restaurants The Glen shopping centre has retail, dining and entertainment options. Local cafes and restaurants add to the suburb’s buzz.

• Outdoor and Recreational Jells Park and Bogong Park provide residents with outdoor activities, exercise and relaxation. These green spaces are a big plus for families and fitness lovers.

Population and Development

• Demographics Population around 50,000. Glen Waverley is a growing suburb with young families, professionals and international residents. This demographic change is driving development and urban renewal in the area.

• Ongoing Investment
  The suburb has ongoing infrastructure projects, roadworks and community spaces, improving the resident’s lifestyle and Glen Waverley as an investment.

Financials

• Capital Growth House prices have moved up and down but Glen Waverley’s location and amenities make it a good investment for long term growth. The suburb will deliver steady moderate returns.

• Rental Returns Low vacancy rate and increasing rents, Glen Waverley is a solid investment for property investors. The unit market in particular is strong for consistent rental income, a good long term investment.

Glen Waverley’s transport, top schools and lifestyle make it a great suburb for both buyers and investors.

Tarneit: Growth and Investment

Sector Data

• Home and Unit Prices Tarneit is an entry level suburb for buyers and investors with median house price of $590,000 and unit price of $380,000. Over the past year house prices have grown 3.1% and unit prices have been stable, up 0.5%. Stable and moderate growth, Tarneit is a good growth suburb.

• Rental Performance Tarneit has good rental yields, houses 3.6% and units 4.2%. Vacancy rate is low at 1.3%. Annual rent for houses has grown 6.5% and units 4.9%. Tarneit is a good suburb for property investors looking for solid rental returns.

• Regional Comparison Compared to nearby suburbs Wyndham Vale and Hoppers Crossing, Tarneit is similar in price but with slightly more growth. Investors should consider Tarneit’s growth alongside other Wyndham region suburbs for long term growth.

Liveability and Mobility

• Commute to Melbourne CBD 25 km west of Melbourne CBD, Tarneit is well connected. Tarneit Station has regular trains and major roads like the Princes Freeway make it easy to drive. Good for commuters and families who want suburban lifestyle.

• Public Transport Upgrades With infrastructure projects underway, including extended rail and new roads, Tarneit will get even more connected, making it an even better suburb.

Education

• Primary and Secondary Schools in Demand Tarneit has good schools like Tarneit P-9 College and Tarneit Senior College, making it a great suburb for families. These schools are in high demand which drives up property prices especially for homes within their catchment areas.

• Expanding Educational Infrastructure The suburb has more schools being developed, making Tarneit even more attractive. The growing educational infrastructure is attracting families who are education focused.

Living and Local Amenities

• Shopping and Dining Tarneit is close to shopping centres like Tarneit Central and Riverdale Village. Local cafes and restaurants provide plenty of dining options, making it a vibrant local area.

• Parks and Recreation Tarneit has green spaces like Tarneit Gardens and the nearby Werribee River, perfect for outdoor activities. These parks and recreational areas add to the suburb’s lifestyle, especially for families.

Population and Development

• Demographics With a population of around 37,000, Tarneit is growing steadily. Families and young professionals are moving to the area for affordable housing and family friendly environment, increasing housing demand.

• Ongoing Projects Infrastructure development, including road upgrades and community facilities, is making the suburb even more attractive for both residents and investors.

Investment Opportunities

• Capital Growth Tarneit has good capital growth due to development and connectivity. Price growth has been slow but long term growth is expected as the suburb matures.

• Rental Yield The steady rental market and rising rents provides good opportunities for investors. Consistent demand for rental properties, especially units, makes Tarneit a good option for investors looking for stable returns.

With its affordability, growing amenities and infrastructure, Tarneit will continue to be a top suburb for investors and families looking for long term value.

Caroline Springs: A Rising Suburb for Investors and Buyers

Market Stats

• Property Prices Caroline Springs is a good option with a median house price of $740,000 and unit prices of $500,000. House prices have grown 4.3% in the last year and unit prices have grown 2.6%. Good for capital growth.

• Rental Market Rental yield in Caroline Springs is strong, houses 3.5% and units 4.1%. Low vacancy rate of 1.0% means high rental demand, good for investors. Rent for houses has grown 7.8% p.a and units 6.2% p.a, solid rental market.

• Neighbouring Suburbs Compared to Burnside and Taylors Lakes, Caroline Springs has good growth and higher demand. Investors can explore options in a growing area that’s popular with families and professionals.

Transport and Accessibility

• Close to Melbourne CBD 22km west of Melbourne CBD, Caroline Springs has public transport. The Caroline Springs train station has a direct line to the city and major roads like the Western Freeway make commuting easy. Good for professionals and families who need to get to the city.

• Ongoing Transport Upgrades Caroline Springs will benefit from upgrades to local train services and new road networks. These will make the suburb more connected and more attractive to future buyers and renters.

Education and Schools

• Established Schools Caroline Springs has various educational facilities like Caroline Springs College and Lakeview Senior College. These schools add to the suburb’s appeal, especially for families who want to be close to good schools.

• New Learning Infrastructure More schools will make Caroline Springs an even more family friendly suburb, making it more attractive to young families looking for good schools.

Lifestyle and Amenities

• Shopping and Leisure Caroline Springs has convenient shopping options like Caroline Springs Shopping Centre and local retail strips. The suburb has many cafes and restaurants, so residents can easily access dining and leisure.

• Parks and Recreation The suburb has green spaces like Caroline Springs Lake and CS Square parklands. These outdoor areas provide recreational opportunities and a relaxed active lifestyle.

Demographics

• Population Population of around 35,000 and growing. Population growth will continue as the suburb is affordable and family friendly.

• Infrastructure Ongoing infrastructure works including roadworks and public amenities will keep Caroline Springs attractive for residents and investors.

Investment

• Capital Growth Caroline Springs has good capital growth with steady price growth and more amenities. Investors can expect consistent property value growth, proximity to Melbourne and improving local infrastructure.

• Rental Returns With a growing rental market and increasing demand for properties, Caroline Springs has good rental returns. The rental price growth, especially for units, is a solid investment for long term rental income.

Caroline Springs is still a good option for investors and homebuyers, growing community, good transport and ongoing infrastructure.

Pakenham: A Long Term Investment

Property Market

• Price Growth Pakenham is a good investment with a median house price of $625,000 and units around $400,000. House prices grew 5.1% in the last year and units 3.2%. This steady growth is good for capital growth.

• Rental Yield and Demand Pakenham rental market has good returns, houses 3.8% and units 4.4%. Low vacancy rate of 1.2% and strong demand for rentals. Rent for houses grew 7.5% and units 5.6%, a hot rental market.

• Compared to Nearby Areas Pakenham is more affordable and has more growth potential than nearby suburbs Officer and Beaconsfield. Being part of Melbourne’s southeastern growth corridor makes it a good option for investors looking for value.

Connectivity and Commute

• Close to Melbourne CBD 55 km southeast of Melbourne CBD. Pakenham train station has direct access to the city and Princes Freeway makes commuting easy, perfect for those who work in Melbourne but live in the suburbs.

• Transport Ongoing infrastructure works such as improved rail services and road upgrades will cement Pakenham as a commuter suburb. These will drive housing demand and investment in the area.

Local Education

• Access to Good Schools Pakenham has several good schools including Pakenham Secondary College and St. Patrick’s Catholic Primary School. These schools make the suburb family friendly and drive demand for housing in the area.

• New Education Facilities Expansion of schools and education centres in Pakenham is contributing to the suburb’s growth. These new facilities will give local families more education options and make the suburb even more attractive.

Community and Lifestyle

• Shops and Eateries Pakenham has several shopping options, Pakenham Marketplace and Village Shopping Centre. The suburb has many cafes and restaurants for residents to choose from.

• Recreation and Open Space Pakenham’s green spaces, Cardinia Reservoir and Pakenham Regional Park offer plenty of outdoor activities. These recreational areas make the suburb attractive for those who love an active lifestyle.

Population and Development

• Population Growth With a population over 80,000 Pakenham is growing fast. Young families and first home buyers are attracted to the area’s affordability and community feel so there will be continued demand for housing.

• Local Development Ongoing investment in infrastructure, roads and public spaces will support Pakenham’s growth. These will keep the suburb as a vibrant community.

Investment

• Capital Growth With prices increasing and infrastructure improving Pakenham is a great opportunity for growth. The suburb is popular so property values will continue to rise.

• Rental Returns High rental yields and low vacancy rates make Pakenham a solid investment. Increasing demand for rentals means consistent returns for long term investors.

Pakenham is affordable, has growth potential and is developing so it’s a good option for both homebuyers and investors in Melbourne’s southeast.

Reservoir: A Suburb on the Move

Property Price Trends

• Steady Price Growth Reservoir is growing steadily, median house price is $750,000 and units are around $500,000. Last year house prices rose 4.8% and units 3.5%. So Reservoir is still a good option for both homebuyers and investors.

• Leasing Activity Reservoir offers strong rental returns, houses 3.5% and units 4.1%. The suburb has a low vacancy rate of 1.4% so there is strong demand for rentals. House rents rose 6.3% and unit rents 4.2% so it’s a good option for investors looking for steady income.

• Nearby Suburb Comparisons Compared to nearby suburbs Preston and Thornbury Reservoir has lower entry prices and ongoing growth. It’s a great option for those who want to be close to the city but with more affordability.

Transport

• Close to Melbourne CBD Only 12km north of Melbourne’s CBD Reservoir has great connectivity. Reservoir Railway Station has direct trains to the city and multiple bus routes make commuting easy.

• Future Transport Upcoming transport upgrades including improved rail services and road developments will improve Reservoir’s connectivity. These will make the suburb even more attractive to buyers and renters.

Education

• Access to Good Schools Reservoir has several good schools, Reservoir High School and St. Gabriel’s Primary School. The suburb is popular with families with both public and private schools available.

• Future Education New education facilities will support Reservoir’s growing population. These will make the suburb even more family friendly.

Community and Lifestyle

• Retail and Dining Residents have access to shopping centres like Northland Shopping Centre and Reservoir Village. The suburb has a diverse dining scene with cafes, restaurants and local eateries to suit all tastes.

• Green Spaces and Outdoor Activities Reservoir’s parks including Edwardes Lake Park and Reservoir Leisure Centre have outdoor spaces to relax and exercise. These recreational areas make for a great lifestyle.

Population and Suburb Growth

• Growing Population and Demographics With a growing population of young professionals, families and renters Reservoir’s housing demand is strong. Its affordability and proximity to Melbourne’s northern business hubs will continue to grow.

• Infrastructure and Local Investment Big investments are being made in Reservoir’s infrastructure including parks, roads and public transport. These will support the suburb’s growth.

Investment

• Property Value Growth Reservoir’s steady growth and infrastructure will make it a good long term capital growth suburb. Its affordability and proximity to Melbourne will mean continued growth.

• Rental Yield With strong rental yields, low vacancy rates and growing demand for rentals Reservoir is a reliable investment. Investors will get steady returns as the suburb grows.

Reservoir’s affordability, accessibility and infrastructure investment makes it one of Melbourne’s best suburbs for both buyers and investors.

Preston: A Rising Star in Melbourne’s Northern Suburbs

Real Estate Values

• Ongoing Price Growth Preston has a median house price of $930,000 and unit price of $620,000. House prices have grown 6.2% in the past year and unit prices 4.5% so it’s a great investment.

• Rental Yield Preston has a solid rental market with houses at 3.2% and units at 4.5%. The suburb has a low vacancy rate of 1.3% so there is high demand for rentals. House rents have grown 5.1% and unit rents 4.7% so it’s a good rental investment.

• Compared to Neighbouring Suburbs Compared to Thornbury and Northcote, Preston has more affordable prices and still growing. Its affordability and capital growth makes it a long term investment hot spot.

Transport and Accessibility

• Direct to the City Preston is 9kms from Melbourne’s CBD with excellent transport links. The Preston Railway Station has direct trains to the city and multiple bus routes to and from the area.

• Infrastructure Development Recent infrastructure upgrades including bike lanes and road projects will make Preston even more accessible. These will make the suburb even more attractive to those who want convenience and connectivity.

Learning

• Schools in Preston Preston has good schools like Preston Primary and High School, families live here. Properties in school zones have premium prices due to the demand for good education.

• Future Education The suburb will have more education developments including private schools and training centres so Preston will remain family friendly with plenty of education options for future residents.

Community and Lifestyle

• Retail and Dining Preston has great shopping with Preston Market and Northland Shopping Centre to cater to residents needs. The suburb has a lively dining scene with many cafes and restaurants serving different cuisines.

• Parks and Recreation Green spaces like Edwardes Lake Park and Preston Reservoir are for recreation. These parks will enhance the suburb’s liveability and give residents a place to relax, exercise and socialise.

Community and Demographics

• Population Growth Preston is growing steadily with young professionals, families and investors moving in due to the suburb’s vibrancy, modern amenities and proximity to the city.

• Community Development Projects Public spaces, pedestrian friendly streets and improved transport options are being invested. These will support Preston’s growing population and make the suburb even more liveable.

Capital Growth

• Capital Growth Expectations With price growth and ongoing development Preston is a great place for capital appreciation. Being close to the city means long term growth for investors.

• Rental Income Preston has strong rental yields and low vacancy rates so it’s a good choice for investors. As demand for rentals continues to grow investors will get steady returns in this growing suburb.

Preston’s affordability, accessibility and development makes it a top choice for both buyers and investors looking for long term growth and steady returns.

Keilor East: A Growth Suburb

Real Estate Market

• Property Values Keilor East is growing steadily with median house price at $850,000 and units at $580,000. In the last year house prices grew 5.4% and unit prices 3.2%. These are the signs of ongoing demand so it’s good for both buyers and investors.

• Tenant Market Keilor East has competitive rental yields with houses at 3.1% and units at 4.4%. The suburb has a low vacancy rate of 1.1% so strong rental demand. House rents have grown 6.8% pa and unit rents 5.2% pa so the rental market is strong.

• Compared to Nearby Suburbs Compared to Niddrie and Airport West Keilor East is more affordable and has solid price growth. It’s a balance of value and capital growth so good for investors.

Transport and Accessibility

• Commute to Melbourne CBD 14 km from Melbourne CBD, Keilor East has great transport options. Several bus routes service the area and being close to the Western Ring Road makes it easy to get on the freeway. Keilor Plains Station has train links to Melbourne CBD so commuting is convenient.

• Planned Infrastructure Keilor East will have ongoing infrastructure upgrades including road works and public transport improvements. These will make the suburb more accessible so good for residents and investors.

Schools in Keilor East

• Access to Good Schools The suburb has good schools like Keilor Heights Primary and St. Augustine’s School so it’s great for families. Good schools increase demand for properties in school zones and many homes in these zones command premium prices.

• Future Schools New schools and educational facilities are planned which will make the suburb even more attractive to families looking for good schools for their children.

Lifestyle and Community Facilities

• Shopping and Dining Keilor East has great shopping at Keilor Central and Westfield Airport West. The area is also getting more cafes and restaurants so it’s a great lifestyle for residents.

• Parks and Recreation Keilor East has green spaces like Keilor Park and the Maribyrnong River so there’s recreational activities for families and fitness enthusiasts. These parks make the suburb family friendly.

Population and Demographics

• Growing Population Keilor East’s population is growing due to demand for family homes and proximity to Melbourne CBD. This growth is creating a community and increasing housing demand.

• Investment in Local Infrastructure Local government is investing in public spaces, transport and community facilities so Keilor East is getting more and more attractive to live and invest.

Investment Outlook

• Wealth Creation With property value growth and infrastructure upgrades planned Keilor East has strong capital growth. It’s affordable and close to Melbourne so a long term investment.

• Reliable Rental Yields Keilor East has competitive rental yields and low vacancy rates so a solid investment. Growing demand for rental properties means reliable returns for investors.

Keilor East is affordable, has transport, good schools and infrastructure so it’s a great suburb for both capital growth and rental returns.

Moonee Ponds: Inner-North Melbourne Suburb

Property Values and Growth

• Property Values and Growth Moonee Ponds is growing strongly with median house price of $1,250,000 and units at $700,000. In the last year house prices increased by 4.5% and units by 3.8%. The steady growth makes Moonee Ponds a great place for both home owners and investors.

• Rental Market Moonee Ponds has good rental yields with houses at 2.8% and units at 4.2%. The suburb has a low vacancy rate of 1.2% so a healthy rental market. House rents increased by 5.4% per annum and units by 4.9% so Moonee Ponds is a strong rental market.

• Compared to other Suburbs
  Compared to other suburbs like Essendon and Ascot Vale Moonee Ponds is more affordable especially if you want to be close to the CBD. Its growing popularity and infrastructure development makes it a great option for investors and first home buyers.

Transport and Connectivity

• Close to Melbourne CBD Moonee Ponds is 6 km from Melbourne CBD so close to the city. Moonee Ponds Train Station has frequent trains and the suburb has multiple tram and bus routes. CityLink and Calder Freeway are also nearby.

• Future Transport Improvements Ongoing transport projects like train services and road upgrades will improve the suburb’s connectivity so Moonee Ponds will remain a popular area for professionals and families.

Education and Schools in Moonee Ponds

• Educational Excellence Moonee Ponds has good schools like Moonee Ponds West Primary School and St Columba’s College so the area is great for families who want good education close to home.

• Emerging Education Facilities New education facilities and private schools are being built so Moonee Ponds will become even more family friendly and increase housing demand.

Neighbourhood Amenities and Lifestyle

• Shopping and Dining The suburb has a range of shopping options including Moonee Ponds Central with retail, restaurants and cafes. A growing food scene makes the area a great place to live.

• Recreation and Greenspace Moonee Ponds has parks like Queens Park and the Maribyrnong River so green spaces for outdoor activities. These balance the urban feel of the suburb.

Population Growth and Development

• Growing Population Moonee Ponds is growing fast with young professionals, families and retirees moving in. This is driving demand for housing and local services and development of the suburb.

• Government Investment The council is investing in infrastructure including public space upgrades and transport links. This will make the area even more attractive.

Future Return

• Capital Growth Moonee Ponds has strong capital growth with consistent price growth and ongoing development. Being close to the city makes it a great suburb for long term investors.

• Solid Rental Returns The suburb has good rental yields and low vacancy rate so it’s a great option for property investors. Growing demand and proximity to Melbourne CBD means continued rental income.

Moonee Ponds has urban convenience, family friendly amenities and investment potential so it’s one of Melbourne’s best suburbs.

Originally Published: https://www.starinvestment.com.au/what-are-melbourne-top-emerging-suburbs-for-growth/