What Melbourne Suburbs Will Boom in 2024?

November 23, 2023
What Melbourne suburbs will boom in 2024?

Key takeaways:

    • Melbourne’s property market is expected to experience significant growth in 2024.

    • Investors and homebuyers should consider factors such as house pricesrental affordabilityvacancy rates, and rental returns.

    • When making property investment decisions, it is important to analyze market trends and potential growth in different Melbourne suburbs.

According to recent data, Melbourne’s property market is poised for a mixed performance in 2024. The market is showing signs of recovery with consistent price rises over the last 10 months of 2023, indicating opportunities for both homebuyers and investors as the market picks up again​​​​.

However, while recovery is evident, the overall growth is expected to be varied, with some sub-markets and property types outperforming others​​​​. The rental market is particularly strong, facing a rental crisis with historically low vacancy rates and soaring rents, a trend expected to continue into 2024​​​​​​​​.

Melbourne’s recovery, although slower and steadier compared to other major Australian cities, is part of a broader trend of solid growth in bigger capital cities​​. High-performing areas are anticipated to be in the inner and middle-ring suburbs, offering rewarding returns for shrewd investors​​​​.

When considering property investment, factors such as vacancy rates and potential rental returns should be taken into account. It’s also crucial to keep an eye on market trends and analyze the growth potential of different Melbourne suburbs.

In this article, we will explore the top Melbourne suburbs that are projected to boom in 2024. By highlighting their key attributes and investment prospects, we aim to provide valuable insights for those interested in the Melbourne property market.

Top Suburbs for Property Investment in Melbourne

When it comes to property investment, choosing the right suburb is crucial for maximizing returns. In Melbourne, there are several suburbs that stand out for their potential growth and profitability. Let’s take a closer look at some of these top suburbs:

Melbourne Suburbs:

For investors looking at Melbourne, suburbs like Yallambie, Croydon South, and Heathmont present promising opportunities. Yallambie provides affordable median house prices and a peaceful suburban lifestyle, along with potential for capital growth.

Yallambie, situated in Melbourne’s North East, is highlighted as an attractive prospect for house investors with a median list price of $956,500. This suburb is characterized by a significant proportion of detached houses and a balanced tenure ratio, indicating its potential in the investment circuit.

Croydon South, located in the Outer East of Melbourne, is noted for its appealing median house price and a high percentage of detached houses, making it a promising destination for house investors.

Heathmont, another suburb in Melbourne’s Outer East, emerges as a budding investment hotspot with a high median property value and a substantial proportion of detached houses, indicating a stable investment environment​​ according to API magazine.

Key Statistics

CitySuburbsMedian House PriceRental Yields
MelbourneCroydon South$855,0003.2%

Furthermore, Terry Ryder’s analysis on the Melbourne property market in 2024 suggests a turnaround in market activity, transitioning from a struggling market to one showing promise of considerable buoyancy. This is reflected in price growth across Greater Melbourne, with suburbs in the City of Melbourne and the nearby City of Yarra showing rising markets.

Outer-ring municipalities like the City of Casey, the City of Frankston, and others in the north and west of Melbourne are also demonstrating recovery trends. Middle market precincts like the City of Whitehorse and the Mornington Peninsula are evidencing revival trends as well.

This upsurge in sales activity and a growing trend of buyers opting for units and townhouses in inner-city municipalities are noteworthy. Additionally, the residential vacancy rate in Melbourne has continued to fall, and asking rents have risen significantly, which are important factors for potential investors to consider​. Understanding these dynamics is crucial, especially when considering what suburb in Melbourne has the highest rental demand?.

​​To understand more about the unique appeal of suburbs in Melbourne, consider exploring What is the coolest suburb in Melbourne?​​

Factors to Consider for Property Investment in Melbourne Suburbs

When looking to invest in Melbourne suburbs, it is crucial to consider several important factors. These factors will play a significant role in determining the success and viability of your property investment. By carefully evaluating these aspects, you can make informed decisions that maximize your potential returns. The following are key factors to consider:

1. Rental Market and Potential Rental Returns

The rental market is a critical consideration in property investment. Assessing the demand and supply dynamics, vacancy rates, and rental affordability in a suburb will help you determine its potential rental returns.

It is important to research the current rental rates and trends in the area, as well as projected rental growth. This information can guide you in selecting suburbs with strong rental demand and attractive rental yields. For a comprehensive listing of current options, explore rental properties in Melbourne.

2. Proximity to Employment Hubs, Amenities, and Transport Links

The location of a suburb in relation to employment hubs, amenities, and transport links is vital. Suburbs that are close to major employment centers, educational institutions, shopping centers, and public transport options tend to attract more tenants and buyers.

Consider the accessibility and convenience of these amenities when evaluating a suburb for investment potential. Suburbs with thriving local economies and a range of amenities are more likely to experience sustained demand and price growth.

3. Population Growth and Track Record of Price Growth

Population growth is a strong indicator of a suburb’s potential for future growth. Suburbs experiencing increasing population numbers are likely to see rising property prices and demand. It is also important to consider the suburb’s track record of price growth over time.

Suburbs that have consistently demonstrated strong capital growth in the past are more likely to continue this trend in the future. Research historical data and consult property market experts to identify suburbs with a promising growth trajectory.

By carefully evaluating the rental market, proximity to amenities, and population growth, you can select Melbourne suburbs that offer strong investment potential. Thorough research, due diligence, and seeking professional advice are essential to make informed property investment decisions.

Factors to ConsiderImportance
Rental Market and Potential Rental ReturnsHigh
Proximity to Employment Hubs, Amenities, and Transport LinksHigh
Population Growth and Track Record of Price GrowthMedium


Investing in Melbourne suburbs in 2024 can provide excellent opportunities for property buyers and investors. By considering market trends, rental affordability, and the potential for capital growth, individuals can identify suburbs that are set to flourish in the coming years.

Suburbs such as Engadine, Northmead, Mortdale, Yallambie, Croydon South, and Heathmont have shown promising attributes for property investment, with affordable housing options and strong growth potential according to API magazine

However, it is important for investors to conduct thorough research, consider their individual financial circumstances, and seek professional advice before making any investment decisions. This approach will help ensure informed decision-making and maximize the potential benefits of investing in these booming suburbs.

With careful consideration and strategic planning, investors can capitalize on the growth and development taking place in Melbourne suburbs, taking advantage of favourable market conditions and positioning themselves for long-term success in the property investment market.

FAQs on ‘What Melbourne Suburbs Will Boom in 2024?’

1. What are the most undervalued suburbs in Melbourne for property investment?

According to recent market data, Melbourne’s inner urban, north, west, and north-east areas are home to some of the most affordable and undervalued unit markets in the city. Notably, apartments in Carlton, Flemington, West Footscray, and Maidstone are currently priced below $500,000.

Additionally, the average property value in suburbs like Richmond, Brunswick, and St Kilda is less than $600,000. These areas offer significant opportunities for investors seeking value in a bustling urban environment.

2. Which suburb in Melbourne’s south-east is highly sought-after for houses?

In the south-eastern part of Melbourne, Berwick has emerged as the most sought-after suburb for house buyers. This area has attracted a significant number of highly engaged buyers, with 41,860 interested parties over the 12 months leading up to the end of May 2023.

Berwick’s popularity among house buyers makes it a suburb worth considering for potential investors and homebuyers alike.

3. Which Melbourne suburbs have experienced a drop in property values?

The Melbourne property market has seen some notable decreases in median unit prices over the past five years, up to June 2023. Carlton has experienced the most significant decline, with a 24.3% drop in median unit prices. This is followed by the Central Business District (CBD) with a 22.5% decrease, and West Footscray experiencing an 18% fall.

In terms of house prices, Clayton and Box Hill have witnessed the largest reductions, with decreases of 13.5% and 10.5%, respectively. These figures provide a clear picture of the changing dynamics in Melbourne’s property market.

Soho is your expert team in Australian real estate, offering an innovative platform for effortless property searches. With deep insights into buying, renting, and market trends, we guide you to make informed decisions, whether it's your first home or exploring new suburbs.
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