Best Capital Growth Suburbs in Melbourne: Top Picks for 2024

February 16, 2024

Key takeaways:

  • Melbourne offers diverse suburbs with promising capital growth potential, fueled by factors like population growth and infrastructure development.
  • Suburbs like Keysborough, Frankston South, Ferntree Gully, Camberwell, and Mount Martha stand out for their unique features such as coastal charm, nature surroundings, and proximity to amenities.
  • Investors should consider individual needs, risk tolerance, and personal preferences when choosing the right suburb for capital growth, while seeking guidance from professionals can enhance decision-making.
  • Thorough research and timely investment are essential in navigating Melbourne’s property market and maximizing capital growth opportunities, ensuring informed decisions aligned with investment objectives.

Looking for the best capital growth suburbs in Melbourne? Every buyer and investor is and the good news is, there are at least 5 of them. With a thriving CBD and recent market growth, Melbourne is prime for investment.

To find top-performing suburbs, look for strong buyer demand and limited housing supply. Consider factors like proximity to the CBD, public transport access, and local amenities. Focus on these for maximum capital growth.

Discover Melbourne’s top-performing suburbs in upcoming sections. Each includes a detailed description, median house price, and key statistic comparison. Stay tuned for your best investment decision.

Melbourne’s Market Landscape

Recent Growth Trends and Overall Market Outlook

Melbourne’s property market has shown promising signs in recent years, with a number of suburbs showing exceptional capital growth. In this ever-changing landscape, it’s important for potential investors to be aware of recent growth trends and the overall market outlook.

  • Median house price: The median house price in Melbourne has experienced an upward trajectory, reflecting a positive market environment for investors. Learn more about median house prices here.

Some of the key drivers behind recent growth trends include:

  • Population growth: Melbourne’s population has been consistently growing, leading to increased demand for housing.
  • Affordability: Despite rising prices, Melbourne has retained some level of affordability compared to other major cities like Sydney.
  • Infrastructure: Significant infrastructure projects are changing the city’s landscape, making certain suburbs more attractive to potential investors.

Factors Driving Growth: Infrastructure, Affordability, Lifestyle

Several factors contribute to the success of Melbourne’s suburbs when it comes to capital growth, including:

  1. Infrastructure: Major projects, such as new transport connections and business hubs, are generating investment and job opportunities, thus contributing to the growth of surrounding locations.
  2. Affordability: Visitors and residents alike find Melbourne a comparatively affordable city with attractive lifestyle opportunities.
  3. Lifestyle: Suburbs that offer convenient access to amenities, such as parks, shopping centres, and public transport, tend to fare better as they cater to the preference for a balanced lifestyle.

To gain further insight into market dynamics, consider exploring areas where Melbourne suburbs where house prices are falling, as understanding these patterns can also inform strategic investment decisions.

5 Best Capital Growth Suburbs in Melbourne

1. Keysborough

House for sale in Newbury Street, Keysborough, VIC
  • Median House Price: $800,000

Keysborough has been gaining significant attention as a growth suburb with great investment potential. It has a low vacancy rate, indicating high demand for rental properties and increased chances of long-term yield for the investor.

This family-friendly suburb is experiencing a boost in community development and housing projects that contribute to its growth potential.

Good schools in the area make it attractive for families, ensuring your investment will appeal to a wide range of prospective tenants.

Population Growth10% in the last 5 years
Vacancy Rate2.5%
Upcoming Infrastructure ProjectsOuter Metropolitan Ring Road

Explore more properties in Keysborough VIC 3173.

2. Frankston South: Coastal Charm Beckons

House for sale in 73 Fleetwood Crescent, Frankston South
  • Median House Price: $765,000

Located along the beautiful coastline, Frankston South offers a coastal lifestyle that is both affordable and alluring. The suburb has experienced substantial house price growth in recent years, proving that it’s a solid choice for those seeking long-term value.

The established market in Frankston South ensures you’re investing in an area with a reliable track record. This charming coastal suburb is bound to continue drawing interest from potential investors and residents alike in the coming years.

Revitalization Plans$500 million investment in city center
Public TransportFrankston train station connects directly to Melbourne CBD
Family-Friendly AmenitiesNumerous parks, playgrounds, and schools

Explore more properties in Frankston South VIC 3199.

3. Ferntree Gully: Nature’s Tranquil Embrace

House for sale in Narambi Close, Ferntree Gully, VIC
  • Median House Price: $780,000

Ferntree Gully combines the serenity of a nature conservation haven with the convenience of suburban living. The lush greenery and picturesque scenery make it a desirable location for families and nature lovers.

The suburb boasts a high growth potential, with housing demand driven by families seeking the perfect balance between work and play in Melbourne’s environs.

Green SpaceDandenong Ranges National Park access
SchoolsHighly-rated public and private schools
Community EventsRegular farmers markets, festivals, and events

Explore more properties in Ferntree Gully VIC 3156.

4. Camberwell: Inner-City Allure

House for sale in 2 Brynmawr Road, Camberwell, VIC
  • Median House Price: $1,500,000
  • Median Unit Price: $600,000

Offering all the charm of inner-city living without the hefty price tag, Camberwell is perfect for those looking to invest in Melbourne suburbs with established markets and proven capital growth.

Camberwell enjoys a high rental demand due to its proximity to top-tier schools, lush parks, and public transport. By choosing to invest in this area, you’ll be tapping into the attractive blend of city lifestyle and suburban tranquillity that Camberwell offers.

Top-Tier SchoolsCamberwell Grammar, Burkevale Primary School, etc.
Parks and GardensBeautiful parks like Camberwell Park and Wattle Park
Transport LinksTrains, trams, and buses for easy access

5. Mount Martha: Beachside Bliss Awaits

Apartment for sale in Bentons Road, Mount Martha, VIC
  • Median House Price: $1,100,000

Mount Martha is a picturesque coastal suburb gaining popularity for its beachside lifestyle and stunning views. It offers long-term value to investors, with consistent capital growth and high demand for coastal properties.

Known for its vibrant community, Mount Martha provides an irresistible coastal lifestyle to its residents. Investing in this location means you are securing not only a desirable property but also the long-term value that comes with it.

Mornington PeninsulaProximity to wineries, restaurants, and attractions
Coastal LifestyleStunning beaches and water activities
Limited Housing SupplyHigh demand and limited availability

Explore more properties in Mount Martha VIC 3934.

Beyond the Numbers: Choosing the Right Suburb

A bustling cityscape with modern skyscrapers and green parks, showcasing the vibrant and growing suburbs of Melbourne

Importance of Considering Individual Needs and Lifestyle Preferences

When researching the best suburbs for capital growth, it’s important to go beyond the numbers and focus on your individual needs and lifestyle preferences.

A high-performing suburb may not be the best fit for you if it’s not in line with your long-term goals, personal preferences, and investment strategy.

Factors to Consider: Rental Yield, Infrastructure Development, Affordability, Desired Vibe

When evaluating suburbs in Melbourne, consider the following factors:

  • Rental Yield: Some suburbs may offer higher rental yields compared to others. This can be an attractive aspect for property investors looking for consistent cash flow.
  • Infrastructure Development: Keep an eye on infrastructure development in potential suburbs. Significant improvements may indicate potential growth in both property value and rental demand.
  • Affordability: Your budget plays an important role in deciding the ideal suburb for property investment. Look for suburbs that offer a balance of affordability and potential capital growth.
  • Desired Vibe: Each neighbourhood has its own unique vibe, which plays a significant role in creating a desirable living environment. Prioritise suburbs that resonate with your desired vibe and lifestyle.

Seeking Professional Guidance for Informed Decision-Making

If you’re still unsure about which suburb to choose, consider seeking guidance from a property professional. A real estate agent or property expert can provide valuable insights into market trends, demographics, and rental growth, helping you make an informed decision.

Importance of Considering Individual Needs and Goals

No two investors are the same. When assessing which suburb might offer the best capital growth for your investment property, it’s vital to consider your individual needs and goals. Some factors to keep in mind include:

  • Risk tolerance: Depending on your financial situation and investment experience, you may be more inclined to choose a high-growth suburb with more inherent risks or a steady, lower-growth suburb with fewer risks.
  • Time horizon: Your investment timeline will play a significant role in determining the most appropriate suburbs for capital growth; a longer time horizon may allow for more robust growth, while a shorter one might require a more conservative approach.
  • Personal preferences: Location and lifestyle priorities will inform your selection of the right suburb to invest in.

Remember, as you navigate Melbourne’s market landscape, it’s crucial to remain knowledgeable and confident in your research and decision-making. Consider using the expertise of professionals, such as financial advisors or real estate agents, to help you identify the best opportunities that align with your personal goals.


Aerial view of Melbourne suburbs with rising property values

As we wrap up our discussion on Melbourne’s best capital growth suburbs, let’s summarise the key aspects you, as an investor or homeowner, should keep in mind for each area.

SuburbMedian House PriceInfrastructure ProjectsAdditional Features
Keysborough$800,000Outer Metropolitan Ring RoadLow vacancy rate, family-friendly, good schools
Frankston South$765,000$500 million investment downtownCoastal lifestyle, established market, accessible transport
Ferntree Gully$780,000Dandenong Ranges National ParkNature conservation, high growth potential, good schools
Camberwell$1,500,000Trains, trams, busesInner-city living, proximity to schools/parks, high demand
Mount Martha$1,100,000Wineries, restaurantsBeachside lifestyle, vibrant community, limited housing supply

Remember, to make the most of the best capital growth suburbs in Melbourne, thorough research and timely investment are essential.

By taking the time to understand the nuances and strengths of each suburb, you can identify your dream suburb and make an informed decision tailored to your unique preferences and investment objectives.

In the ever-changing landscape of Melbourne’s property market, staying informed on capital growth trends and key drivers in various suburbs will significantly bolster your chances of investment success.

Suggested reading: For those looking to truly understand the best of Australian living, this guide to the best suburbs in Australia is a must-read.

FAQ Section on Best Capital Growth Suburbs in Melbourne

What is the best suburb growth in Melbourne?

In Melbourne, some of the suburbs experiencing significant growth include Melton, Glen Waverley, Bentleigh, Box Hill, Werribee, Brighton, Caulfield, Kew, and Brunswick, among others.

What suburbs will boom in Melbourne 2024?

Suburbs anticipated to experience growth in Melbourne in 2024 include Albion, Altona Meadows, Arden, Ballarat East, Belmont, Berwick, Burwood, Carrum, Cheltenham, Churchill, Croydon South, Delacombe, and Ferntree Gully, among others.

What are the fastest selling suburbs in Melbourne?

The fastest selling suburbs in Melbourne can vary, but some consistently popular areas include Keysborough, Beaumaris, Frankston South, Ferntree Gully, Keilor East, and Camberwell, among others.

What are the 10 Melbourne suburbs to get new homes?

The 10 Melbourne suburbs to expect new homes include Broadmeadows, Camberwell Junction, Chadstone, Epping, Frankston, Moorabbin, Niddrie (Keilor Road), North Essendon, Preston (High Street), and Ringwood.

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