What are the fastest growing suburbs in Melbourne so far this year?
It looks like Melbourne’s property market is still going strong, with suburbs like Essendon and Pakenham leading the race.
We’ve rounded up the top neighbourhoods based from CoreLogic’s Hedonic Home Value Index August 2024 which shows areas with strong capital growth, emerging growth and consistent historical performance.
For property investors, these are the suburbs to take advantage of Melbourne’s changing market.
Fastest Growing Suburbs in Melbourne
| Suburb | Median House Price | Weekly Median Rent | Median Sale Price Change (1yr) | Gross Yield |
|---|---|---|---|---|
| Essendon | $1.8M | $700PW | -1.22% | 2.1% |
| Keilor | $1.2M | $650PW | 18% | 2.9% |
| Narre Warren South | $815K | $550PW | 1.24% | 3.7% |
| Pakenham | $652K | $480PW | 1.80% | 3.5% |
| Brighton | $3.3M | $1,298PW | -2.44% | 2.0% |
| Eltham | $1.3M | $650PW | 5.22% | 2.7% |
What Is the Current State of Melbourne’s Property Market?
As of August 2024, Melbourne’s property market has slowed after previous highs. The median house price has decreased by 2.6% over the past year, now at $911,500, reflecting market stabilisation.
However, the rental market remains strong, with vacancy rates at 2.2%, leading to a 9% increase in house rents and a 10% rise in unit rents.
This indicates sustained demand for rentals, making it favourable for investors. Looking forward, modest growth is expected, supported by limited supply and ongoing infrastructure projects.
This environment is ideal if you’re considering where to buy an investment property in Melbourne this year.
Which Suburbs in Melbourne Are Best for Capital Growth?
Essendon
- Median House Price: $1.8M
- Weekly Median Rent: $700PW
- Median Sale Price Change (1yr): -1.22%
- Gross Yield: 2.1%
Essendon is a suburb that has old charm and modern convenience. 8km north west of Melbourne’s CBD it’s well connected by public transport (train and tram) making it a great option for commuters. Which is why it’s also one of the fastest growing suburbs in Melbourne.
The suburb is home to high-quality schools such as Penleigh and Essendon Grammar School which attract families to the area. Local amenities such as parks and shopping centres like Windy Hill Fitness Centre add to the lifestyle.
For work, Essendon’s proximity to Melbourne CBD and local employment hubs offers plenty of job opportunities, making it an attractive option if you’re planning to buy real estate in Melbourne.
The suburb has a strong local economy with high property demand and affluent residents which means economic stability.
Essendon also has a lively entertainment scene with recreational facilities like the Maribyrnong River Trail and plenty of dining options.
View more properties for sale in Essendon VIC 3040.
Keilor
- Median House Price: $1.2M
- Weekly Median Rent: $650PW
- Median Sale Price Change (1yr): 18%
- Gross Yield: 2.9%
Keilor in Melbourne’s north west is another suburb that’s poised for growth. The suburb is well serviced by public transport and close to major freeways so it’s easy to get to the CBD and other parts of Melbourne.
Keilor has good education options including Keilor Primary School and Overnewton Anglican Community College so it’s a great option for families.
For work opportunities Keilor is close to business hubs in Melbourne’s north west so there are plenty of options. The suburb’s consistent property demand and strong community feel contribute to its stability, making it one of the fastest-growing areas in Victoria.
View more properties for sale in Keilor VIC 3036.
Which Suburbs Are Emerging in Melbourne?
Narre Warren South
- Median House Price: $815K
- Weekly Median Rent: $550PW
- Median Sale Price Change (1yr): 1.24%
- Gross Yield: 3.7%
Narre Warren South in the Casey region is emerging as a suburb to watch. The suburb is well connected to Melbourne’s CBD via the Pakenham train line and a comprehensive bus network.
Narre Warren South has several schools including Narre Warren South P-12 College so it’s a popular choice for families. Local amenities like Casey Central Shopping Centre add to the suburb’s appeal.
Work opportunities in Narre Warren South are boosted by its proximity to the Dandenong South employment precinct which has jobs in manufacturing, logistics and retail. The suburb’s economy is supported by ongoing infrastructure and the expansion of local amenities.
Narre Warren South has recreational facilities including parks and sports clubs and a diverse dining scene centred around the Casey Central area.
View more properties for sale in Narre Warren South VIC 3805.
Pakenham
- Median House Price: $652K
- Weekly Median Rent: $480PW
- Median Sale Price Change (1yr): 1.80%
- Gross Yield: 3.5%
Pakenham in Melbourne’s southeast is another one of the emerging fastest growing suburbs in Melbourne. The suburb is serviced by the Pakenham train line so you can get to Melbourne’s CBD direct.
Pakenham has several educational institutions including Pakenham Primary School and Pakenham Secondary College so it’s a popular choice for families.
Work opportunities in Pakenham are abundant, particularly in retail, education and healthcare with major employers like the Cardinia Shire Council contributing to the local job market.
The suburb has a stable economy with ongoing residential and commercial development. Pakenham has recreational facilities including parks and the Lakeside Recreation Reserve which are popular with families and outdoor enthusiasts.
The local dining scene centred around the Pakenham Central Marketplace has plenty of options for residents.
View more properties for sale in Pakenham VIC 3810.
Which Suburbs Have Shown Strong Historical Growth in Melbourne?
Brighton
- Median House Price: $3.3M
- Weekly Median Rent: $1,298PW
- Median Sale Price Change (1yr): -2.44%
- Gross Yield: 2.0%
Brighton is one of Melbourne’s most sought-after suburbs with strong historical growth. 11kms from Melbourne’s CBD and with multiple train stations on the Sandringham line it’s a great commute.
Brighton has some of Melbourne’s best schools including Brighton Grammar School and St Leonard’s College so it’s a top choice for families.
Brighton has a luxury lifestyle with local amenities including high-end shopping on Church Street, Brighton Beach and numerous parks.
The suburb has a strong local economy with high property values and steady demand so it’s a solid long-term investment.
Brighton has recreational facilities like the Royal Brighton Yacht Club and diverse dining options so it’s a great place to live.
View more properties for sale in Brighton VIC 3186.
Eltham
- Median Price: $1.3M
- Weekly Median Rent: $650PW
- Median Sale Price Change (1yr): 5.22%
- Gross Yield: 2.7%
Eltham in Melbourne’s northeast is another suburb with a history of growth. The suburb is serviced by the Eltham train station on the Hurstbridge line so you can get to Melbourne’s CBD easily.
Eltham has excellent educational institutions including Eltham High School and Catholic Ladies College so it’s a great choice for families.
The suburb has a stable economy with a steady demand for housing and a strong community feel. Eltham has recreational facilities including parks and the famous Montsalvat artist colony which adds to its charm.
The local dining scene is more laid back than in inner city suburbs but has a variety of cafes, restaurants and pubs to suit all tastes.
View more properties for sale in Eltham VIC 3095.
8 Factors to Consider When Choosing a Suburb to Live In
When choosing a suburb to live, work, or invest in, consider the following:
Quality of Life
- Public Transport: Suburbs like Essendon and Elsternwick are well-connected with excellent train and tram services, making commuting to Melbourne CBD convenient. This ease of access is crucial for daily commuters and enhances the overall appeal of these suburbs.
- Education: Areas such as Brighton and Eltham are renowned for their top-tier schools, from primary to secondary levels. The proximity to universities in these suburbs adds value, making them ideal for families and investors focused on long-term growth.
- Local Amenities: Suburbs like Point Cook and Narre Warren South offer a wide range of amenities, including shopping centres, parks, and various cafes and restaurants. These amenities make daily life comfortable and enjoyable for residents.
Work
- Job Opportunities: Suburbs like Essendon are close to major business districts, providing easy access to job opportunities and contributing to a strong local economy. This makes them excellent choices for professionals seeking convenience and career growth.
- Near Business Hubs: Living near Melbourne’s business hubs ensures easy access to job markets. This is important for both residents and investors looking to capitalize on the high rental demand in these areas.
- Economic Stability: Suburbs like Glen Iris and Eltham, with strong local economies, are better positioned to withstand market fluctuations, making them more stable choices for long-term investment. Economic resilience is crucial for maintaining property values and ensuring a secure investment.
Entertainment
- Recreational Facilities: Suburbs like Brighton and Point Cook offer excellent recreational facilities for residents. Whether it’s enjoying the beach, visiting local parks, or participating in sports clubs, these suburbs provide a wide range of activities for an active lifestyle.
- Diverse Dining: The dining scene in these suburbs are vibrant and diverse, offering everything from casual cafes to fine dining. This variety caters to all tastes and budgets, making these areas popular with both residents and visitors.
Why are Rental Demand and Vacancy Rates Important?
For investors, understanding rental demand and vacancy rates is essential. Suburbs like Essendon and Narre Warren South have strong rental yields and low vacancy rates, making them ideal for property investment.
High rental demand ensures a consistent income stream, while low vacancy rates reduce the risk of prolonged vacancies, offering greater security and steady returns on investment. These factors make these suburbs attractive options for those seeking reliable and profitable investments.
Frequently Asked Questions on ‘Fastest Growing Suburbs in Melbourne ‘
What are the best capital growth suburbs in Australia in 2024?
The best suburbs to invest in 2024 in Australia include Manly and Parramatta in NSW, Newcastle and Wollongong in regional NSW, and Fortitude Valley and South Brisbane in QLD.
What is the fastest growing area in Melbourne?
Melbourne’s fastest growing suburbs include Narre Warren South and Pakenham Melbourne overall is the fastest growing capital city in Australia, adding approximately 830,000 residents over the past decade.
What are the most undervalued suburbs in Melbourne?
Some of Melbourne’s most undervalued suburbs, tipped for imminent price growth, include Elsternwick and Yarraville. These areas offer median house prices below $1 million, making them attractive for buyers seeking value.
Which part of Melbourne is the richest?
Toorak remains Melbourne’s richest suburb, with a median house price of $5.18 million. Located about 5km southeast of the CBD, Toorak is known for its luxury properties and exclusivity.
Sources: Information sourced from www.propertyvalue.com.au. Compiled on 23/08/2024. Includes median house prices, rental yields, and growth statistics from PropertyValue’s latest data on Melbourne’s suburbs. The real estate listings mentioned are from soho.com.au.
