Are you looking for the best suburbs in Melbourne to invest in for 2024? You’ve come to the right place. Melbourne’s property market is full of opportunities, but making the right choice involves thorough research.
While the pandemic significantly impacted Melbourne’s real estate, the city has shown resilience. Unlike Sydney and Brisbane, Melbourne’s property market saw only a 17.3% rise from the lowest to the highest point. This presents unique investment opportunities.
In the past two years, the median property prices have slightly declined. If you’re eyeing a lucrative investment in Melbourne’s real estate, knowing where the best opportunities lie is crucial. After reviewing insights from property experts, here’s a look at the best and worst suburbs in Melbourne for 2024.
Best Suburbs to Invest in Melbourne for 2024
Melbourne remains one of the top places in Australia for property investment. The price gap and growth rates between the best and worst suburbs highlight significant potential.
According to the Real Estate Institute of Investment’s the disparity in property values is expected to continue, providing opportunities for savvy investors.
Here are some of the best suburbs in Melbourne to invest in for 2024:
Table: Key Market Data for Best Suburbs to Invest in Melbourne for 2024
| Suburb | Median House Price | Growth Rate (Annual) | Rental Yield |
|---|---|---|---|
| Dandenong | $700,000 | +4.19% (House) +4.56% (Unit) | 3.59% (House) 5.25% (Unit) |
| Brighton | $3,355,000 | +6.82 % (House) +5.21 % (Unit) | 1.94% (House) 3.29% (Unit) |
| Bentleigh & East Bentleigh | $1,430,000 | +3.83 % (House) +9.21 % (Unit) | 2.80 % (House) 3.52 % (Unit) |
| Caulfield | $1,700,000 | +1.60% (House) +1.09% (Unit) | 2.43% (House) 3.52% (Unit) |
| Beaumaris | $2,045,000 | +5.26% (House) +9.06% (Unit) | 2.66% (House) 3.29% (Unit) |
| Keysborough | $925,000 | +4.41% (House) +4.42% (Unit) | 3.41% (House) 4.18% (Unit) |
| Box Hill | $1,730,000 | +6.38% (House) -0.06% (Unit) | 2.12% (House) 5.53% (Unit) |
Recommended Reading: The Most Undervalued Suburbs in Melbourne This Year
Since you’ve decided to venture into property investments, Let’s take a closer look at each of these suburbs:
1. Dandenong
Key Market Data
| Metric | House | Unit |
|---|---|---|
| Median Price | $700,000 | $450,000 |
| Quarterly Growth | 0.00% | +1.12% |
| 12-Month Growth | -6.04% | +5.88% |
| Average Annual Growth | +4.19% | +4.56% |
| Weekly Median Rent | $500 | $420 |
| Gross Rental Yield | 3.59% | 5.25% |
| Number of Sales (12m) | 123 | 257 |
| Avg. Days on Market (12m) | 44 | 46 |
According to Pete Wargent of BuyersBuyers, houses in Dandenong are a worthwhile investment. With more employees offered a work from home situation, houses outside the city fringe are becoming more popular.
The upside of Dandenong is its proximity to the M1 freeway if you do need to commute. Moreover, Dandenong is a steadily growing suburb and looking to turn into an important business hub by 2030.
Many new residential developments are underway, with a high demand from renters looking to move to the area.
See more properties for sale in Dandenong VIC.
2. Brighton
Key Market Data
| Metric | House | Unit |
|---|---|---|
| Median Price | $3,355,000 | $1,315,000 |
| Quarterly Growth | +1.21% | +1.15% |
| 12-Month Growth | -1.32% | +9.58% |
| Average Annual Growth | +6.82% | +5.21% |
| Weekly Median Rent | $1,392 | $772 |
| Gross Rental Yield | 1.94% | 3.29% |
| Number of Sales (12m) | 230 | 216 |
| Avg. Days on Market (12m) | 33 | 43 |
Regarded as the wealthiest suburb in Melbourne, a sunny beachside suburb, Brighton is one of the best areas to invest in 2023. Only eleven kilometres away from Melbourne’s CBD, Brighton has some of the most elegant homes at a median property price of about $3 million.
With a modest annual growth of 6.82%, this grand suburb serves as an affordable option for many investors. Some of the best schools, diners, shopping malls, and railway and train line stations are found here.
See more properties for sale in Brighton VIC.
3. Bentleigh and East Bentleigh
Key Market Data
| Metric | House | Unit |
|---|---|---|
| Median Price | $1,430,000 | $1,175,000 |
| Quarterly Growth | +0.88% | +5.38% |
| 12-Month Growth | -1.38% | +10.02% |
| Average Annual Growth | +3.83% | +9.21% |
| Weekly Median Rent | $700 | $740 |
| Gross Rental Yield | 2.80% | 3.52% |
| Number of Sales (12m) | 323 | 233 |
| Avg. Days on Market (12m) | 25 | 26 |
There is a high demand for housing in Bentleigh and East Bentleigh. Here you’ll find the finest in social amenities.
With a total population of 27,635 individuals, this suburb is mostly occupied by middle-aged individuals between the ages of 28-40, young families, and first-home buyers who are looking for a new and decent home to settle down and start a family.
East Bentleigh has some great transport travel links, easy access, excellent schools and educational services, and close proximity to shopping centres like Southland and Chadstone.
These benefits serve as some reasons why you should invest in this part of Melbourne.
Bentleigh is undoubtedly one neighbourhood you should invest in the Melbourne real estate market given its median unit price growth from $965,000 to $1,385,000, creating a rental yield percent of 3.52.
See more properties for sale in Bentleigh VIC.
4. Caulfield
Key Market Data
| Metric | House | Unit |
|---|---|---|
| Median Price | $1,700,000 | $875,000 |
| Quarterly Growth | -0.15% | -3.85% |
| 12-Month Growth | -13.49% | +0.57% |
| Average Annual Growth | +1.60% | +1.09% |
| Weekly Median Rent | $950 | $560 |
| Gross Rental Yield | 2.43% | 3.52% |
| Number of Sales (12m) | 27 | 39 |
| Avg. Days on Market (12m) | 35 | 34 |
Looking for a more neighbourhood-friendly suburb, then Caulfield is perfect for you! Just 10km of the southeastern part of Melbourne CBD is the Caulfield houses.
Caulfield has an estimated population of close to 5500 individuals, where the average age of a resident is 60+ years old. This part of Melbourne has some of the best train stations and lines which connect Caulfield to other parts of Melbourne CBD and neighbouring houses.
Caulfield is one of Melbourne’s revitalised neighbourhoods and is in high demand from home buyers and property investors.
See more properties for sale in Caulfield VIC.
5. Beaumaris
| Metric | House | Unit |
|---|---|---|
| Median Price | $2,045,000 | $1,257,500 |
| Quarterly Growth | +1.82% | -1.37% |
| 12-Month Growth | -0.24% | -7.37% |
| Average Annual Growth | +5.26% | +9.06% |
| Weekly Median Rent | $1,040 | $720 |
| Gross Rental Yield | 2.66% | 3.29% |
| Number of Sales (12m) | 144 | 63 |
| Avg. Days on Market (12m) | 34 | 25 |
This tiny and beautiful beachside suburb is one of the top-rated investment areas in Melbourne. The median home price in this area is approximately $2 million, making it one of the most lucrative real estate markets in all of Australia.
With a total estimated population of 13,000 citizens, this homey suburb is mostly made up of families. Many buyers love its family-friendly environment.
Beaumaris is set at an Average annual growth percent of 5.26% as its unit price growth and 9% as its house price growth bringing forth a rental yield of 3.3%.
See more properties for sale in Beaumarais VIC.
6. Keysborough
Key Market Data
| Metric | House | Unit |
|---|---|---|
| Median Price | $925,000 | $686,000 |
| Quarterly Growth | +0.54% | +2.62% |
| 12-Month Growth | -0.32% | +3.31% |
| Average Annual Growth | +4.41% | +4.42% |
| Weekly Median Rent | $650 | $622 |
| Gross Rental Yield | 3.41% | 4.18% |
| Number of Sales (12m) | 302 | 47 |
| Avg. Days on Market (12m) | 26 | 30 |
Keysborough was recorded as one of the areas with the highest quarterly growth by the end of the September quarter in house prices in the property market.
Its median house price rate rose by 4.4% to $925,000. Keysborough is an affordable suburb with a rental yield of 3.4 per cent and a weekly rent rate of $940.
See more properties for sale in Keysborough VIC.
7. Box Hill
Key Market Data
| Metric | House | Unit |
|---|---|---|
| Median Price | $1,730,000 | $475,000 |
| Quarterly Growth | +2.98% | +3.26% |
| 12-Month Growth | +5.49% | -2.82% |
| Average Annual Growth | +6.38% | -0.06% |
| Weekly Median Rent | $590 | $550 |
| Gross Rental Yield | 2.12% | 5.53% |
| Number of Sales (12m) | 44 | 180 |
| Avg. Days on Market (12m) | 26 | 41 |
Box Hill is one of Melbourne’s eastern suburbs located 14 kilometres east of the city centre. This suburb is most highly sought after and purchased by Asian investors and international buyers because of its accessibility and affordability.
Box Hill is rich in racial diversity with great shopping centres and great schools.
See more properties for sale in Box Hill VIC.
The worst suburbs to invest in – the bad and the ugly
Some homes might not have the best interest rates or median price in the unit market, despite their relative affordability and excellent living circumstances. In the past year, some Melbourne houses witnessed the largest house and unit price falls. These suburbs include;
Worst Suburbs to Invest in Melbourne for 2024
| Suburb | Median Price Fall (Annual) |
|---|---|
| Windsor | -14.1% (House) |
| St Kilda | -12.4% (House) |
| South Melbourne | -12.2% (House) |
| Malvern East | -11.3% (House) |
| Middle Park | -10.9% (House) |
| Kew East | -18.5% (Units) |
| Hawthorn East | -18.1% (Units) |
| Ascot Vale | -17.1% (Units) |
| Hawthorn | -16.4% (Units) |
| Moonee Ponds | -16.3% (Units) |
Additional Reading: Are you a Sydneysider? Explore the Worst Suburbs in Sydney instead!
Liked learning about the best suburbs in Melbourne to invest and the worst?
Melbourne is a diverse and dynamic city with a wide range of suburbs to choose from. When it comes to investing in property, it’s important to consider factors such as location, property prices, and potential for growth.
Suburbs such as Dandenong, Brighton and Box Hill are considered some of the best areas to invest in due to their high property values, strong rental demand, and proximity to amenities.
However, it’s important to note that this is not a comprehensive list and that property investment is a complex and dynamic field, and it’s important to consult a professional or do your own research before making any decisions.
Additional Reading: Are you a Sydneysider? Explore the Worst Suburbs in Sydney instead!
More on the best suburbs in Melbourne to invest?
Where is the best place to invest in property in Australia in 2024?
For 2024, leading options for investment properties in Australia include Manly and Parramatta in New South Wales, Fortitude Valley in Queensland, and Carlton in Victoria.
Which suburbs in Melbourne have dropped in value?
In Melbourne, house prices have notably declined in the sought-after inner suburbs such as South Melbourne, South Yarra, and Carlton North by 17%, 13%, and 10.4% respectively. Conversely, Wantirna South in Melbourne’s outer east has seen a price increase of 15.2% over the past year.
What suburbs to avoid buying in Melbourne?
It is advisable to be also cautious about investing in suburbs like Frankston and Travancore as well due to various factors affecting their market value and investment potential.
What are the most in demand suburbs in Melbourne?
The most in demand suburbs in Melbourne are those that are located close to the city, have good transport links, and are seen as having good investment potential. Some of the most in demand suburbs include:
- South Yarra
- Camberwell
- Hawthorn
- Richmond
- Toorak
Is Melbourne property a good investment?
Whether Melbourne property is a good investment depends on a number of factors, including your investment goals, your timeframe, and your risk appetite. However, Melbourne has a strong property market and has consistently outperformed other capital cities in Australia in terms of capital growth.
What are the most undervalued suburbs in Melbourne?
The most undervalued suburbs in Melbourne are those that are located in areas of high growth potential, but have not yet seen the same level of price appreciation as other suburbs. Some of the most undervalued suburbs include Mernda and South Morang.
