Want to know the top 3 cheapest suburbs in Melbourne at the moment?
We’ve got our eyes on Melton, Coolaroo and Dallas.
Melbourne property prices have been relatively stable in recent months, with some fluctuations.
And who knows, after seeing the US lower their interest rates, the RBA may follow suit which could give some of us a leg up the property ladder.
But in the meantime, let’s check out the city’s most affordable suburbs so we know where to look when the time is right.
What’s Happening in Melbourne’s Housing Market?
Overall, the Melbourne property market is showing signs of resilience, with prices remaining relatively stable despite some minor fluctuations.
Key Market Statistics
| Statistic | Value |
|---|---|
| Median House Price | $943,725 |
| Median Unit Price | $610,490 |
| Annual Population Growth | +500,000 (2023-2027 forecast) |
| Major Industries | Finance, Technology, Healthcare |
The Melbourne housing market has demonstrated resilience with median property prices Melbourne reaching $943,725 for houses and $610,490 for units.
These figures reflect the strength of affordable suburbs in Melbourne, particularly in the context of population growth and major industries like finance, technology, and healthcare.
Which Are the Top 8 Cheapest Suburbs for Houses in Melbourne?
The top 8 most affordable suburbs for houses in Melbourne offer a blend of affordability, lifestyle, and investment potential, making them highly attractive for first homebuyers and investors alike.
| Suburb | Median House Price | Notable Features |
|---|---|---|
| Coolaroo | $540,000 | Close to CBD, cultural heritage |
| Dallas | $530,000 | Near Hume Highway, affordability |
| Melton | $478,000 | Access to Daylesford, family-friendly |
| Werribee | $615,000 | Werribee Zoo, lush green spaces |
| Tarneit | $650,000 | Popular among first-home buyers, green spaces |
| Hoppers Crossing | $620,000 | Proximity to Tarneit, affordable homes |
| Craigieburn | $641,000 | 45-min drive from CBD, developing area |
| Pakenham | $652,750 | Near Bunyip State Park, family-oriented |
These suburbs are some of the most affordable options in Melbourne’s north and southeast, offering good access to major shopping centres and recreational facilities.
Which Are the Top 6 Cheapest Suburbs for Units in Melbourne?
These are the most affordable suburbs in Melbourne where you can find great deals on units. From bustling city living to quiet, family-friendly areas, these suburbs offer affordability without compromising on lifestyle and convenience.
| Suburb | Median Unit Price | Distinguishing Characteristics |
|---|---|---|
| Melton | $379,000 | Family-friendly, suburban vibe |
| Werribee | $435,000 | Attractions like Werribee Zoo |
| Tarneit | $455,000 | Emerging suburb, modern amenities |
| Craigieburn | $415,500 | Growing suburb, good infrastructure |
| Pakenham | $485,000 | Scenic surroundings, relaxed lifestyle |
| Carlton | $390,000 | Vibrant cultural scene, urban living |
These suburbs offer affordable housing options close to major shopping centres and good transport links, making them ideal for young families and first homebuyers.
What Are the Cheapest Suburbs Within 10km of Melbourne CBD?
Melbourne CBD and Richmond are among the most affordable suburbs within 10km of Melbourne’s CBD. These areas offer the convenience of city living with more accessible price points for units compared to detached houses.
| Suburb | Median Price for Units | Proximity to CBD | Vacancy Rate |
|---|---|---|---|
| Melbourne CBD | $564,450 | Within CBD | 2.1% |
| Richmond | $595,000 | < 10km | 0.7% |
These areas also boast low vacancy rates, indicating strong demand and potential for property investment.
Why Are Coolaroo, Tarneit, and Dallas Some of the Cheapest Suburbs in Melbourne?
Coolaroo
- Median House Price: $520,000
- Distance From The CBD: 26 minutes
Coolaroo is one of the most affordable suburbs to rent in Melbourne. Affordability is a significant draw for the neighbourhood, especially for first home buyers and investors priced out of more expensive suburbs.
As a result, Coolaroo, once considered “undervalued,” is now recognized as one of Australia’s best-performing affordable suburbs.
Coolaroo is located 16.8 kilometres from Melbourne’s CBD, close to Melbourne Airport and key arterial routes. Enhanced infrastructure, convenient access to public transportation, major shopping centres, and all levels of schooling make it a desirable choice for property investment.
If you’re looking for cheap apartments for rent in the Melbourne CBD but can’t find the right property, you should consider this suburb instead.
Discover more properties for sale in Coolaroo VIC.
Tarneit
- Median House Price: $650,000
- Distance From The CBD: 36 minutes
Young families are drawn to the area’s educational opportunities. Tarneit has six primary and secondary schools to select from, allowing you to tailor education to your child’s requirements.
In addition, Tarneit is a short 30-50 minute journey to the city and the M1, making for a quick morning commute.
If you’re looking for 1 bedroom apartments for rent in Melbourne for cheap, definitely a great choice to consider amongst the cheapest suburbs in Melbourne.
Discover more properties for sale in Tarneit VIC.
Dallas
- Median House Price: $510,000
- Distance From The CBD: 30 minutes
Dallas is a Melbourne, Victoria, Australia suburb located 16 kilometres north of Melbourne’s central business area.
The City of Hume is its local government area. The typical home price in Dallas is $510,000 while the average unit price is $465,750.
In terms of rental returns, homes in Dallas rent for $348 per week with an annual rental yield of 3.7% and apartments rent for $360 per week with an annual rental yield of 3.6%.
Discover more properties for sale in Dallas VIC.
Melton
- Median House Price: $525,000
- Distance From The CBD: 30 minutes
If you are limited by budget, you can get affordable apartments for rent in Melbourne if you choose Melton. This suburb is 35 kilometres outside the city and should be on your radar.
Melton has the most affordable properties, with median property values of $500,000 (houses) and $362,000 (units).
The neighbourhood has its train station near the airport and has good schools.
As in most Melbourne suburbs, House prices in Melton surged sharply in 2022 but remain reasonable for many purchasers.
Discover more properties for sale in Melton VIC.
Hoppers Crossing
- Median House Price: $620,000
- Distance From The CBD: 42 minutes
Hoppers Crossing is 23 kilometres southwest of the capital’s central business sector. It is the administrative and most populated centre of the city.
The primary mode of transportation is by road, specifically motor vehicles. The Department of Transport has designated hoppers crossing as one of the most car-dependent areas in Greater Melbourne.
As a result, its citizens rely mainly on the city’s extensive network of busy highways.
Despite being an inner-city neighbourhood, hoppers crossing is one of Melbourne’s most important areas to invest in 2022, with an 8.9% increase in property values.
However, even for those looking to buy a home, this area has promise, with a 7.1% growth rate.
Discover more properties for sale in Hoppers Crossing VIC.
Related Articles
- Cheapest houses for sale in Sydney under $500,000
- The 8 best suburbs to invest in Brisbane
- The 8 best suburbs to invest in Melbourne 2022
Methodology
The suburbs included in this guide were determined based on the following factors:
- Median Price Data: Suburbs were initially identified as potentially affordable using median house and unit prices as sourced from reliable real estate platforms (e.g, Domain, CoreLogic).
- Growth Trends: Suburbs showing stable or moderate property value growth over the last 12 months were prioritized. This suggests relative affordability compared to areas with rapidly increasing prices.
- Distance to CBD: Suburbs within a reasonable commuting distance of Melbourne’s CBD were considered, balancing affordability and accessibility.
- Rental Market Analysis: Areas with comparatively lower median rental prices and reasonable rental yields were included, signifying potential for affordability for renters.
Important Note: Property markets can fluctuate. It is always recommended that potential renters and buyers conduct their own up-to-date research and consult with real estate professionals to make informed decisions based on their individual needs and budget.
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FAQ Section on The Cheapest Suburbs in Melbourne 2024
What are the other most affordable suburbs to stay in Melbourne?
Coburg North and Ringwood East are also recognized as some of the most affordable suburbs in Melbourne, with median weekly rents standing at $180 per week.
Will house prices come down?
House prices in Melbourne are anticipated to continue rising in 2024, with an expected increase of approximately 3-4%, translating to an additional $90,000 to $120,000 on a $3 million property.
What is the least affordable suburb in Melbourne for renters?
Brighton East emerges as the least affordable suburb for renters in Melbourne, where residents allocate 38% of their household income towards rent.
What suburbs will boom in 2024 in Victoria?
Suburbs including Albion, Altona Meadows, Arden, and Ballarat East, among others, are poised for significant growth in 2024, making them areas to watch for potential property investment or residence.
Sources
Information compiled from www.corelogic.com.au and www.domain.com.au. Data accurate as of 13/08/2024. Additional insights provided by TimeOut, with median prices and market trends analyzed to offer a comprehensive overview of Melbourne’s most affordable suburbs in 2024.
