Knowing the cheapest suburbs in Melbourne will give you an idea of where to pitch your tent, especially if you’re on a budget.
Melbourne, Australia’s second-largest city, is often regarded as one of the most liveable cities globally, and for a good reason. It is well-known for its culinary traditions, unique architecture, lush suburbs, and cultural attractions.
According to rental reports studies, Melbourne is the cheapest Australian city to rent in for the first time in a long while. According to the survey, the median housing rent in the city is $430 per week and is not growing.
In comparison, Sydney’s typical home rent is $580 per week and growing at a rate of 5% or more every quarter, while Brisbane’s is $470 and rising at more than 2% quarterly.
Given these numbers, you’re not wrong for looking up the cheapest suburbs in Melbourne for rent.
Based on data, research, and views from experts, Melbourne property managers, and analysts, we have compiled 8 cheap suburbs in Melbourne for 2022.
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8 of the cheapest suburbs in Melbourne
1. West Melbourne
- Price guide: $400,000
- Median House Price: $540,341.
- Distance From The CBD: 50 minutes
Fortunately, most families in the west can still easily access the market, education and transport system. So, if you seek an affordable family house to rent within 20 kilometres of Melbourne’s CBD, west Melbourne is the best.
West Melbourne is not as famous as the eastern suburbs; however, western suburbs like Yarraville, Spotswood, Newport, and Footscray are fast gentrifying.
Even outlying communities like Werribee are becoming more trendy. If you want to be closer to the CBD and are on a tight budget, the western suburbs are probably your best chance.
Surprisingly, median property values in this area s remain under $600,000, with homes costing $540,000 and apartments costing $400,000.
Houses in Werribee rent for $350 per week, with an annual rental yield of 3.4%.
2. Tarneit
- Price guide: $455,000
- Median House Price:$580,000.
- 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.
It’s definitely a great choice to consider when looking at the cheapest suburbs in Melbourne.
3. Coolaroo
- Price guide: $475,235
- Median House Price:$500,000.
- Distance From The CBD:26 minutes
Coolaroo is one of the cheapest suburbs to rent in Melbourne. Affordability is an enormous appeal to the neighbourhood, especially for first-time homebuyers and investors priced out of other areas.
As a result, Coolaroo, formerly considered “undervalued,” has been named Australia’s best-performing cheap neighbourhood.
Coolaroo’s position is 16.8 kilometres from the CBD, proximity to Melbourne Airport and key arterial routes, and enhanced infrastructure appeal to purchasers.
There is convenient access to public transportation, commercial centres, and all levels of schooling.
4. Dallas
- Price guide: $481,842
- Median House Price:$500,000.
- 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 $481,842, while the average unit price is $500,000.
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 $310 per week with an annual rental yield of 3.8%.
5. Melton
- Price guide: $410,00
- Median House Price:$567,387.
- 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 $410,000 (houses) and $335,000 (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.
6. Hoppers Crossing
- Price guide: $410,00
- Median House Price:$565,000.
- 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.
7. Carlton
- Price guide: $487,000
- Median House Price:$400,000.
- Distance From The CBD:42 minutes
Carlton is not commonly thought of as ‘affordable,’ yet it is unique in that it has numerous low-cost flats.
When you combine all of the nearby colleges, you have a student population that needs a place to reside.
A one-bedroom apartment may be purchased for roughly $226,000, with a rental yield of 9.1%, which is remarkable.
This type of apartment has a low capital growth rate of 2.6%, so you should know why you’re purchasing it.
However, if you are experienced in the Australian property market, this type of high-yielding property may be a wonderful addition to a property portfolio.
8. Officer
- Price guide: $487,000
- Median House Price:$400,000.
- Distance From The CBD:48 minutes
Officer, one of Melbourne’s fastest expanding suburbs, is quickly becoming a popular destination for investors and house buyers.
As a result, officers’ median price has increased by a stunning 182% in the previous five years, with a continuous yearly growth rate of 24%.
Officer has everything you’d expect from a good suburb: lots of schools, a train station, and modern shopping malls.
The median property price is approximately $400,000, making it affordable for first-time buyers and ideal for investors searching for a good deal.
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