Perhaps you are considering investing in Melbourne's real estate market but don't know where to start? Or you want to understand the most promising investment hotspots in Melbourne for 2025?
While Melbourne has been a leader in Australia's real estate market for the past 40 years, its performance has shown some signs of slowing down in recent years. In fact, over the past 12 months, Melbourne's property prices have remained largely stagnant, while some other capital cities have seen impressive double-digit growth.
Melbourne Property Market Update
So, where are the opportunities in Melbourne's future? This article will provide an in-depth analysis of the top 11 suburbs in Melbourne to invest in for 2025, helping you stay on top of market trends and seize the best investment opportunities!
First, let's look at the top 10 suburbs in Melbourne for growth in detached houses and apartments. The top ten include Blackburn, Glen Waverley, Ringwood, Preston, Reservoir, Mitcham, Moonee Ponds, McKinnon, Bentleigh, Mount Waverley, and Essendon. However, due to the overall weakness in Melbourne's property prices, only the top six suburbs have seen positive growth.
Apartments in Melbourne have outperformed detached houses, with the top ten suburbs being Mount Waverley, Mitcham, Moonee Ponds, Preston, Blackburn, Essendon, Ringwood, Reservoir, Bentleigh, McKinnon, and Glen Waverley. Among these, Mount Waverley takes the lead with an average price of $830,000, experiencing a quarterly growth of 13.69% and an annual growth of 14.48%, truly standing out.
TOP 10 House Markets in Melbourne
TOP 10 Apartment Markets in Melbourne
Melbourne's Best Suburbs for Property Investment in 2025
Will these suburbs continue to perform well in 2025? Besides property prices, are there other factors driving the development of these areas? Will new suburbs enter the race for the top 10 most noteworthy investment areas in Melbourne? Let's dive deeper into the suburbs that deserve your attention for investment in 2025.
Bentleigh, VIC 3204
Where elite schools meet investment excellence
Total Population: 14,919 (+4.54%)
Median House Price: Detached $1,625,600, Apartment $946,000
Median Rent: Detached $880, Apartment $625
Total Rental Yield: Detached 2.62%, Apartment 4.03%
Average Listing Days: 40 days
Bentleigh is a rapidly growing suburb in Melbourne's southeast, attracting many investors with its prime location and appreciating real estate market. Situated just about 13 km from Melbourne's city center, the area benefits from convenient public transport, including Bentleigh and Patterson train stations, and is close to Nepean Highway for easy commuting.
As an upmarket suburb, Bentleigh offers a friendly community atmosphere, especially favored by families. The area boasts high-quality schools, such as McKinnon Secondary College and Bentleigh West Primary School, attracting many buyers and renters seeking good educational resources. Additionally, Bentleigh is well-equipped with top-tier amenities, including local shopping streets, cafes, restaurants, and is only a short drive from major shopping centers like Southland and Chadstone, offering diverse lifestyle options.
The real estate market in Bentleigh blends classic homes with emerging townhouse projects, making it particularly appealing to young families and professionals.
Blackburn, VIC 3130
Perfect harmony of nature and convenience
Total Population: 12,995 (+7.00%)
Median House Price: Detached $1,550,000, Apartment $740,000
Median Rent: Detached $628, Apartment $520
Total Rental Yield: Detached 3.90%, Apartment 1.90%
Average Listing Days: 36 days
Blackburn is located about 17 km east of Melbourne's city center, offering excellent transport links and a prime location. The suburb is served by two train stations (Blackburn Station and Laburnum Station) that connect directly to the city and is also close to the Eastern Freeway and Whitehorse Road for easy commuting.
The area features well-known schools like Blackburn High School and Laburnum Primary School, attracting many education-focused families and renters.Surrounded by greenery, Blackburn offers natural landscapes like Blackburn Lake Sanctuary and Morton Park, providing a tranquil living environment.
The area also features cafes, restaurants, and shopping facilities, making it popular among families and those who value quality living.The real estate market in Blackburn has shown steady growth, offering a range of properties from renovated older homes to modern townhouses and boutique apartments, catering to various investors.
Essendon, VIC 3040
Embodiment of refined living
Total Population: 18,852 (+3.51%)
Median House Price: Detached $1,740,000, Apartment $620,000
Median Rent: Detached $650, Apartment $500
Total Rental Yield: Detached 2.22%, Apartment 4.55%
Average Listing Days: Detached 72 days, Apartment 46 days
Essendon is a charming, upscale suburb located about 8 km north of Melbourne's city center. The area is not only home to the famous Essendon Bombers football club but also features spacious tree-lined streets, magnificent city views, and large luxury homes, offering a distinctive high-end lifestyle.
Essendon benefits from excellent transport options, including Essendon train station, multiple tram lines, and nearby CityLink highways, making it easy to commute to the city or Melbourne Airport. The suburb is also known for its high-quality educational institutions, such as Penleigh and Essendon Grammar School and St Columba's College, drawing many families focused on education. The area also boasts a wealth of shopping, cafes, and restaurant options, providing residents with a diverse and convenient living environment.
As a mature and highly sought-after community, Essendon combines historical charm with modern conveniences, making it a solid long-term investment option.
Glen Waverley, VIC 3150
Where education meets investment value
Total Population: 39,204 (+2.57%)
Median House Price: Detached $1,671,000, Apartment $876,000
Median Rent: Detached $700, Apartment $670
Total Rental Yield: Detached 2.17%, Apartment 3.70%
Average Listing Days: Detached 30 days, Apartment 36 days
Glen Waverley is one of the most popular suburbs in Melbourne's southeast, attracting investors due to its excellent educational resources, convenient transport links, and thriving real estate market. Located around 20 km from the city center, it is well-connected to major business districts via the Monash Freeway and train stations.
Glen Waverley is renowned for its educational facilities, especially Glen Waverley Secondary College, which is highly sought after by parents, increasing demand for housing in the area. The suburb also features the Kingsway dining and shopping street, which hosts many highly-rated restaurants and boutique stores, offering diverse lifestyle choices.
The real estate market in Glen Waverley has consistently performed well, with strong demand for family homes and newly built high-quality townhouses, making it attractive to both local and overseas investors. With ongoing infrastructure upgrades and the continued development of high-end residential projects, the potential for property price growth in this area remains strong.
McKinnon, VIC 3204
Complete amenities, rising star of the East
Total Population: 5,554 (+7.24%)
Median House Price: Detached $1,850,000, Apartment $830,000
Median Rent: Detached $850, Apartment $680
Total Rental Yield: Detached 2.50%, Apartment 3.97%
Average Listing Days: Detached 48 days, Apartment 54 days
McKinnon is a highly sought-after suburb in Melbourne's southeast, known for its excellent educational resources, pleasant community environment, and stable real estate market. Located about 14 km from the city center, the area enjoys convenient transport links, including McKinnon train station and major roads connecting residents to the city and other commercial areas.
The standout feature of McKinnon is McKinnon Secondary College, making properties in the school's catchment area highly desirable for families. Recognized as one of Melbourne's top public secondary schools, it attracts a large number of families every year, further driving demand in the local property market. Additionally, McKinnon offers several parks and green spaces, providing a balanced environment for both living and leisure, making it ideal for families who prioritize quality of life.
With increasing demand for quality education and convenient living, both house prices and rental yields in McKinnon have been steadily growing, making it a promising investment hotspot for 2025.
Mitcham, VIC 3132
Multicultural fusion, young professionals' choice
Total Population: 14,812 (+4.17%)
Median House Price: Detached $1,180,000, Apartment $887,000
Median Rent: Detached $600, Apartment $550
Total Rental Yield: Detached 2.75%, Apartment 3.83%
Average Listing Days: Detached 32 days, Apartment 35 days
Mitcham offers a great balance of convenience and tranquility, making it a highly attractive option for investors and homebuyers. Located about 20 km east of Melbourne, this green suburb has been gaining attention for its friendly community atmosphere and growing development potential.
Mitcham boasts a comprehensive transport network with its own train station, which directly connects to the city via the Belgrave and Lilydale lines. The EastLink freeway also provides residents easy access to key areas of Melbourne.
The suburb offers a more affordable property market compared to other popular areas, but its value is rapidly increasing. With spacious family homes, a growing number of new townhouses and apartment projects, and proximity to top educational institutions and shopping centers like Eastland and Forest Hill Chase, Mitcham is a great option for families. It also has several parks and nature reserves, such as Yarran Dheran Reserve and Halliday Park, perfect for family living.
As an emerging market with a developing infrastructure, Mitcham combines investment stability and potential, making it ideal for investors seeking high-value options in Melbourne's real estate market.
Moonee Ponds, VIC 3039
First-time Buyer Haven & Investor Hotspot
Total Population: 13,531 (+7.07%)
Median House Price: $1,446,000 (House), $620,000 (Apartment)
Median Rent: $672 (House), $540 (Apartment)
Rental Yield: 3.80% (House), 4.61% (Apartment)
Average Days on Market: 39 days (House), 40 days (Apartment)
Moonee Ponds, located in Melbourne's western suburbs, is a district with historical charm. Just 7 km from the city center, Moonee Ponds combines historical charm with modern convenience, making it one of the most popular suburbs in the inner city. The area boasts a well-developed transport network, including a train station with direct access to the city center and multiple tram lines, and it is only a 15-minute drive from Tullamarine Airport, making it convenient for commuters and business travelers.
The area offers complete lifestyle facilities, with the famous Puckle Street commercial area offering dining, retail, and entertainment options. It also has excellent educational resources and abundant green spaces, such as Queens Park and the Maribyrnong River walking trail, attracting many family homebuyers. From classic houses to modern apartments, Moonee Ponds' real estate market is diverse and steadily growing.
As a scarce market in the inner city, Moonee Ponds offers high demand, strong growth potential, and stable rental returns, making it an ideal choice for investors.
Preston, VIC 3072
Where commerce meets lifestyle
Total Population: 29,925 (+7.29%)
Median House Price: $1,170,000 (House), $627,500 (Apartment)
Median Rent: $600 (House), $525 (Apartment)
Rental Yield: 3.01% (House), 4.45% (Apartment)
Average Days on Market: 36 days (House), 39 days (Apartment)
Preston is a vibrant and diverse community in Melbourne's northern suburbs, just 9 km from the city center. The area's transport convenience is a major advantage, with multiple train, tram, and bus lines directly connecting to the city center, as well as proximity to major roads and highways, greatly facilitating commuting.
Preston is home to numerous lifestyle amenities, including the bustling High Street shopping and dining precinct, Preston Market, and a variety of popular cafes and leisure spots. The area also offers excellent educational and healthcare facilities, attracting young professionals, families, and international buyers. There are also several parks and green spaces, such as Edwardes Lake Park, providing ideal outdoor spaces for recreation.
Reservoir, VIC 3073
Where sophistication meets convenience
Total Population: 47,636 (+3.63%)
Median House Price: $896,000 (House), $601,000 (Apartment)
Median Rent: $530 (House), $500 (Apartment)
Rental Yield: 3.23% (House), 4.28% (Apartment)
Average Days on Market: 47 days (House), 41 days (Apartment)
Reservoir, located approximately 12 km north of Melbourne's city center, is an important suburb that attracts more and more buyers and investors due to its convenient transport and ongoing infrastructure upgrades. The area has a train line (Mernda Line), bus, and tram routes, and is close to the Metropolitan Ring Road, providing excellent transportation options for daily commuting and long-distance travel.
The area is highly convenient, with Edwardes Street and Broadway offering various shopping and dining options, as well as nearby natural attractions like Edwardes Lake Park and Darebin Creek Trail, providing a rare urban oasis. The local educational and community facilities are well-established, making it particularly popular among family buyers, enhancing the area's community atmosphere.
In terms of real estate, Reservoir's attractiveness lies in its diverse housing options and reasonable price range. Whether buyers are looking to renovate older homes or seeking townhouses or modern apartments, the area offers a wide variety of choices.
Ringwood, VIC 3134
Complete Lifestyle Hub with Comprehensive Development
Total Population: 16,008 (+5.42%)
Median House Price: $1,020,000 (House), $632,500 (Apartment)
Median Rent: $600 (House), $510 (Apartment)
Rental Yield: 3.15% (House), 4.26% (Apartment)
Average Days on Market: 26 days (House), 31 days (Apartment)
Ringwood, located in Melbourne's eastern suburbs, is about 23 km from the city center. It boasts a convenient transport network, including the Eastern Freeway and a well-established public transport system, making it an ideal choice for commuters. The area offers excellent shopping and entertainment facilities, such as the Eastland shopping center and Ringwood Square, which not only provide international brands and upscale restaurants but also meet daily needs.
Additionally, Ringwood Lake Park and Mullum Mullum Creek Trail offer green spaces that contribute to a healthy and enjoyable outdoor lifestyle for residents.
The area also offers great educational and healthcare resources, with quality schools like Ringwood Secondary College and comprehensive medical services at Maroondah Hospital. Furthermore, Ringwood's real estate market remains stable, with a variety of housing options, from traditional detached homes to modern apartments, attracting various types of buyers and tenants. The demand for rental properties is strong, and the area offers good rental returns and potential for capital growth.
Your Strategic Partner in Melbourne Property Investment
These are the top 10 performing areas in Melbourne, and with 2025 expected to approach a market low, it is a great time for buyers to enter the market.For deeper insights into Melbourne's real estate investment opportunities or professional property management services, reach out to RightKeyBnB.
We offer comprehensive investment consulting and Airbnb property management services to help you seize the best opportunities in Melbourne's property market and maximize your investment returns. Contact us now to let our professional team create a tailored investment strategy for you.