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By Brett Warren

The 16 Best Suburbs to Invest in Melbourne right now

Perhaps you want to invest in Melbourne’s property market but don’t know where to start.

Or maybe you’re wondering what the best Melbourne suburbs to invest in are for 2024.

Let me talk you through it.

Melbourne’s property market bottomed out in early 2023 and has now moved into the next property cycle phase - the recovery phase.

The tide has clearly turned, so it makes sense that you’re wondering which are the best locations to invest in Melbourne property.

Melbourne 3

Well… after facing a number of considerable headwinds - the economic fallout of the Covid-19 pandemic, extended lockdowns, consecutive interest rate hikes, and tighter lending restrictions to name a few - and a trough-to-peak growth of 17.3% during the 2020-21 property boom, Melbourne’s housing values have remained robust.

While the Melbourne housing market turned the corner in early 2023, property price growth has been slower than in some other capital cities.

Melbourne’s property prices fell 0.1 % in January 2024, according to CoreLogic data, setting the city’s median dwelling price as $777,250.

Melbourne’s dwelling values now sit 4.2% below the record high, which was in March 2022.


With Melbourne underperforming some of the other capital city property markets over the last year, there is significant upside potential in the Melbourne housing market.

In fact, a new report from Oxford Economics is forecasting Melbourne’s median house price will surge more than $110,000 to an almost $1.16m record high in the next 18 months – the equivalent of $200 a day.

And it’s not just house prices, unit prices will also reach a new record.

According to the report, Melbourne’s median unit price is also anticipated to increase 6.5% to an all-time $726,900 high.

What this does do is create a window of opportunity to get into the property market as the Melbourne market picks up again.

Because, as Melbourne moves through its fragmented recovery phase, a clear flight to quality properties continues to occur.

A-grade homes and "investment grade" properties are still in short supply thanks to prevailing strong demand, while B-grade properties are taking longer to sell and informed buyers are avoiding C-grade properties altogether.

Auction clearance rates also give a great "in time" indication of the mood of Melbourne property buyers and sellers and Melbourne's auction market data show that the market has recovered its "mojo."

Melbourne’s clearance rates held up well throughout 2023 and started 2024 strongly.


Now, the question I hear many property investors ask is: “What is going to cause property values to increase moving forward?

I believe demographics (such as population growth, family formation, how we want to live, and where we want to live) as well as the wealth of the nation will be the main long-term drivers of our property market and will be much more important than the short-term fluctuations created by interest-rate rises, inflation or government intervention.

The rising tide that lifted all ships in the last boom has now gone, as has the period of rising household incomes and low interest rates that we enjoyed over the last decade.

That means our property markets will be much more fragmented moving forward and capital growth will be dependent on local factors including demographics, gentrification, neighbourhood, and wage growth of the people in these locations.

Here I’ve broken down what I see as the best 16 suburbs to watch in Melbourne, with help from data from and

Top suburbs in Melbourne by annual property price growth


Suburb Median house price Quarterly growth Annual growth
Elsternwick $2,110,000 11.98% 20.83%
Caulfield $1,786,000 5.78% 8.82%
Mordialloc $1,330,000 0.00% 4.16%
Surrey Hills $2,375,000 0.00% 4.16%
Sandringham $2,021,000 -0.51% 2.63%
Mount Waverley $1,615,000 0.00% 1.08%
Brighton $3,000,000 0.00% 0.16%
Bentleigh and East Bentleigh $1,430,000 0.00% 0.00%
Beaumaris $1,982,000 2.63% 0.00%
Hampton $2,320,000 6.02% -2.33%
Glen Waverley $1,705,000 -1.34% -3.34%
Cheltenham and Highett $1,380,000 0.00% -4.35%
Box Hill $1,425,000 -7.00% -5.41%
McKinnon $1,950,000 -5.41% -6.32%
Ormond $1,725,000 -2.95% -11.50%
Parkdale $1,352,000 -7.15% -12.61%

Source: Domain


Suburb Median unit price Quarterly growth Annual growth
Caulfield $747,000 0.00% 14.52%
McKinnon $824,000 4.44% 7.63%
Beaumaris $1,075,000 -9.35% 3.40%
Box Hill $538,000 2.18% 3.30%
Mordialloc $697,500 0.00% 3.12%
Bentleigh and East Bentleigh $740,000 1.15% 3.00%
Glen Waverley $870,000 -0.79% 1.83%
Brighton $1,092,500 2.23% 0.32%
Sandringham $705,000 -2.09% -0.77%
Hampton $833,500 -3.18% -1.91%
Parkdale $715,000 -4.77% -2.05%
Elsternwick $625,000 -1.70% -3.75%
Cheltenham and Highett $665,000 -0.91% -5.18%
Mount Waverley $1,065,000 -2.20% -6.25%
Surrey Hills $890,500 -1.34% -6.74%
Ormond $581,250 -5.67% -9.10%

Source: Domain

Top suburbs in Melbourne by rental yield


Suburb Vacancy rate Weekly rent (houses) Annual rent growth Rental yield
Cheltenham and Highett 0.60% $600 9.09% 2.83%
Parkdale 0.68% $660 8.19% 2.64%
Caulfield 0.83% $850 21.40% 2.50%
Beaumaris 0.39% $940 1.62% 2.50%
Mordialloc 0.81% $595 2.58% 2.47%
Hampton 0.63% $950 14.45% 2.35%
Sandringham 0.48% $875 -2.24% 2.33%
Bentleigh and East Bentleigh 0.85% $675 5.46% 2.19%
Mount Waverley 0.48% $550 10.00% 2.05%
Ormond 0.67% $650 0.00% 2.04%
Elsternwick 0.98% $850 8.97% 2.03%
McKinnon 0.78% $690 1.47% 2.01%
Glen Waverley 0.57% $560 7.69% 2.00%
Brighton 0.84% $1,150 15.00% 1.92%
Box Hill 1.26% $500 4.16% 1.85%
Surrey Hills 0.58% $700 7.69% 1.82%

Source: Domain


Suburb Vacancy rate Weekly rent (units) Annual rent growth Rental yield
Bentleigh and East Bentleigh 0.85% $465 9.41% 4.03%
Elsternwick 0.98% $445 11.25% 4.00%
Ormond 0.67% $385 10.00% 4.00%
Cheltenham and Highett 0.60% $420 6.32% 3.97%
Mordialloc 0.81% $440 10.00% 3.96%
Caulfield 0.83% $485 11.50% 3.90%
Box Hill 1.26% $410 10.81% 3.89%
Glen Waverley 0.57% $490 13.95% 3.67%
McKinnon 0.78% $495 5.31% 3.65%
Parkdale 0.68% $420 2.43% 3.64%
Sandringham 0.48% $450 2.27% 3.60%
Surrey Hills 0.58% $460 6.97% 3.28%
Mount Waverley 0.48% $450 7.14% 3.12%
Hampton 0.63% $495 0.00% 2.86%
Beaumaris 0.39% $450 -2.18% 2.57%
Brighton 0.84% $575 8.49% 1.90%

Source: Domain

Here are the full details of the 16 suburbs to watch in Melbourne, listed by the area they are located.


1. Caulfield

Total population: 5,608

Average age: 60+

Median house price: $1,786,000

Median unit price: $747,000

Caulfield is a well-regarded suburb that sits roughly 10km southeast of Melbourne's CBD.

It is one of Melbourne's best-serviced towns in terms of tram and train networks, which link Caulfield with the CBD as well as neighbouring suburbs such as Elsternwick and Glen Huntly.

Villa units and homes in the neighbouring gentrifying suburbs of Carnegie and GlenHuntly make great investments – they are highly sought after by home buyers and investors.


2. Elsternwick

Total population: 10,353

Average age: 20-39

Median house price: $2,110,000

Median unit price: $625,000

Just 9km from the Melbourne CBD, Elsternwick is a sought-after suburb.

Surrounded by lots of good quality schools, the beach, and great amenities, the suburb is highly desirable for families in particular.


3. Ormond

Total population: 8,420

Average age: 20-39

Median house price: $1,725,000

Median unit price: $581,000

Ormond has a high density of owner-occupier properties at around 59% and the suburb's demographic is split equally between families and single people.

It is gentrifying, has many cafes, shops, and supermarkets in close proximity, great schools for both primary and secondary along with superb public transport.


4. Bentleigh and East Bentleigh

Total population: 27,635

Average age: 29-40

Median house price: $1,430,000

Median unit price: $740,000

Bentleigh East is a high-demand market with good transport links, local schools, and plenty of amenities on the doorstep.

While the suburb mainly consists of established couples and families, it is a gentrifying suburb with many young families moving into the older houses or into the many new townhouses being built in Bentleigh.

It is serviced by good schools, great local shopping, and proximity to both Southland and Chadstone shopping centres.


5. McKinnon

Total population: 6,060

Average age: 40-59

Median house price: $1,950,000

Median unit price: $824,000

McKinnon has easy access to public transport and is within a short distance of the city.

It has several parks and schools, cafes and shops, and many other facilities within arm’s reach.

Like the surrounding suburbs of Bentleigh and Ormond, McKinnon is gentrifying with many new homes and townhouses being built.

The McKinnon High School catchment zone, which has recently been extended, is a great drawcard for both home buyers and tenants.


6. Brighton

Total population: 23,354

Average age: 40-59

Median house price: $3,000,000

Median unit price:$1,092,500

The bayside suburb of Brighton, just 11km from the CBD, is home to some of Melbourne’s wealthiest residents.

With a median house price of just over $3 million, the suburb has some of the city’s grandest homes.

At the same time, a mini-building boom of apartments provides a more affordable option for downsizers and investors.

The area has three railway stations, multiple shopping strips, cafes, restaurants, beaches, and some of the best schools available.


7. Hampton

Total population: 13,392

Average age: 40-59

Median house price: $2,320,000

Median unit price: $833,500

Adjoining prestigious Brighton, Hampton is a beachside suburb that hosted The Block last year.

Located just 14 kilometres from the CBD this gentrifying suburb has a lot going for it including a number of retail shopping precincts featuring restaurants, bistros, clothing stores, antique shops, and personal services.


8. Sandringham

Total population: 10,234

Average age: 40-59

Median house price: $2,021,000

Median unit price: $705,000

Another high-demand market with bumper property prices to match.

This affluent family-focused beachside suburb is located 16 km southeast of CBD and has easy access to a variety of amenities.


9. Beaumaris

Total population: 13,330

Average age: 40-59

Median house price: $1,982,500

Median unit price: $1,075,000

The small bayside suburb of Beaumaris is another high-demand market with an equally high median house price.

The area is dominated by families and is majority owner-occupied at 87% of current properties.

Of the remaining properties up for rent, the suburb has a very low 0.39% vacancy rate.


10. Cheltenham and Highett

Total population: 22,295

Average age: 40-59

Median house price: $1,380,000

Median unit price: $665,500

Cheltenham is a gentrifying bridesmaid suburb that still represents good value relative to the neighbouring Highett suburb.

Both suburbs enjoy proximity to the large Southland shopping centre and offer an affordable entry into a Bayside suburb and are close to the beach yet only 19 minutes from the CBD on the express train.

They offer a range of excellent schools and are tightly held suburbs with high owner-occupier appeal and have great parks, schools, shopping, and some of the best golf courses in Melbourne.

The adjoining suburbs of Parkdale and Mentone are also great investment locations.


11. Parkdale

Total population: 11,744

Average age: 40-59

Median house price: $1,352,000

Median unit price: $715,000

Further south, the suburb of Parkdale is another highly regarded beachside area with excellent schools, great sports facilities, shopping, cafes, restaurants, and excellent access to public transport.


12. Mordialloc

Total population: 8,166

Average age: 35-45

Median house price: $1,330,000

Median unit price: $697,500

Mordialloc is considered to be a great lifestyle suburb with very limited shortcomings.

The beach is within close distance, as are cafes and restaurants.

The suburb is 24km from the city and has easy access both by car and train.

The area also boasts great schools and childcare options.

Surrey Hills

13. Surrey Hills

Total population: 13,606

Average age: 40-59

Median house price: $2,375,000

Median unit price: $890,500

Melbourne’s affluent eastern suburb of Surrey Hills has a high $2 million median house price.

The family-orientated area has a great focal point Union Road shopping village which has great cafes, organic stores, and other shops.

Older villa units make great investments in Surrey Hills, especially when renovated.

Glen Waverley

14. Mount Waverley

Total population: 33,625

Average age: 40-59

Median house price: $1,615,500

Median unit price: $1,065,000

Mount Waverley is another very family-friendly area where locals are mainly older couples and families with some younger single people.

The area has a relaxed lifestyle with lots of parks, schools, golf courses, shopping, and access to public transport.

Box Hill

15. Box Hill

Total population: 11,395

Average age: 25-35

Median house price: $1,425,500

Median unit price: $538,000

Like much of Melbourne’s middle ring of eastern suburbs, Box Hill, 14 kilometres east of the city centre, has become much sought-after by Asian and international buyers.

It's a diverse suburb with good shopping and great schools.

Mount Waverley

16. Glen Waverley

Total population: 40,333

Average age: 40-59

Median house price: $1,705,000

Median unit price: $870,000 

Glen Waverley is orientated around young families and professionals.

The area has a low crime rate and sits in the catchment for some of the best schools in the city.

The suburb sits just 19km southeast of the CBD and is residential in nature with substantial areas of commerce centred around the Glen Waverley Railway Station.

A little closer to the City and offers access to The Glen Shopping Centre, Glen Waverley Golf Course, and Central Reserve.


So, what are Melbourne’s best suburbs for property investment now that we have moved into the recovery phase?

Let me make one thing clear first…

There might be a lot of talk about certain property ‘hotspots’ which are said to guarantee investment return.

But I don’t believe in hotspots or investing in an area just because it is expected to be the “next best thing”.

As far as I’m concerned, this year’s “hotspots” tend to be next year’s “not-spots” and as a long-term investor, I base my decisions on fundamentals.

I do not gamble.

My approach to this list of top Melbourne suburbs for 2024 is to highlight strong and stable suburbs that have shown both consistent historical growth and also have the right demographics to suggest future long-term growth.

And let’s not forget one of the most vital things to remember… 

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Note: Neighbourhood is now more important than ever!

In the post-COVID world, the ability to work, live, and play all within 20-minutes-reach home is the new gold standard desirable lifestyle.

If social distancing and the pandemic taught us anything, it’s the importance of the neighbourhood we live in.

If you can leave your home and be within walking distance of, or a short trip to, a great shopping strip, your favourite coffee shop, amenities, the beach, or a great park, the recently implemented coronavirus restrictions might seem a little more palatable than if you had none of that on your doorstep.

But the reality is, this concept is nothing new.

In fact, the rise of the 20-minute neighbourhood started long before Covid-19.

You will find these are often in the gentrifying aspirational lifestyle suburbs of our capital cities and people will pay a premium to either own or rent a property in these locations.

And many of Melbourne’s inner suburbs and middle ring suburbs already meet the 20-minute neighbourhood test thanks to ample supermarkets, the tram line, bus stops, numerous coffee shops, and other things which make the area considerably more appealing.

Unlike the outer suburbs which are set away from city transport links and with minimal access to supermarkets, coffee shops, or clothes shops… there definitely aren’t any gastro breweries or art galleries.

As the size of our accommodation gets smaller, demand for options in a great neighbourhood will rise and people will be prepared to pay a premium to live or rent in this type of location.

Understanding these factors forms part of the research data we use at Metropole to help our clients find investment-grade properties or A-grade homes for owner occupation.

As has happened in the past, moving forward the various suburbs in our cities will show a dramatic range in performance, and in my mind, there's no doubt that proximity to lifestyle locations will remain a big drawcard.

As well as access to popular education catchments.

This is true of both primary and secondary school catchment zones, which have in general outperformed the market and are likely to continue to do so.

Education is a long-term consideration and, whether you are planning a family, have children already enrolled in school, or are an investor looking to attract long-term, quality tenants, it may be beneficial to consider school catchment zones when you are determining suburbs of interest.

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Tips: Follow the demographics!

According to leading demographer Bernard Salt, the pandemic changed the Australian workforce not just by prompting adaptation to new technology like Zoom calls and triggering a work-from-home movement, but also by rigidly dividing the nation according to skill sets.

The Australian Bureau of Statistics classifies every job according to one of five skill levels with Skill Level 1 being the most skilled.

It is well recognised that the rich – such as people with a Skill Level 1 job - are getting richer, and at the other end of the spectrum, Skill Level 5 jobs, which require little or no previous work experience (like general sales assistant, kitchen hand) are experiencing no wages growth.

A Skill Level 1 job requires a bachelor’s degree or higher, or the equivalent of at least 5 years of training.

People with these types of jobs will earn more income and be able to afford to pay more for their properties.

The pandemic demands skills in finance (accounting), risk management (solicitors), computer programming, and many other Skill Level 1 jobs.

However, the story of the balance of the workforce has been quite different.

So understanding where the Skill Level 1 worker lives in Melbourne is critical and can be seen in the following graphic provided by Bernard Salt for The Australian.



About Brett Warren Brett Warren is National Director of Metropole Properties and uses his two decades of property investment experience to advise clients how to grow, protect and pass on their wealth through strategic property advice.

All your recommended suburbs are above 1M, in affluent areas. Did you have any recommendations for people with a budget of less than 1M without compromising on those skill level 1, public transport and ammenities

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Not sure where you got this data from, but it is highly untrue

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Yet all the suburbs you recommended prices tanked and will underperformed in short medium term.

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