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Melbourne Property Investment Market
With one of the most competitive property markets among Australia’s capitals, Melbourne has historically fostered a favourable environment for property investment — and 2024 is set to be a year of opportunities for strategic investors.
Melbourne property values in 2023 showed slow growth, with average house prices rising by 3% over the year and average unit prices by 2.5%. With prices still below their previous high in March 2022, there is a high growth potential for the rest of 2024.
With rising demand in Melbourne’s housing market supporting growth expectations, many investors are looking to stake their claim on the market and reap the rewards. Here are our picks for the 8 best Melbourne suburbs for investment in 2024.
For investors comparing suburbs, rental yields, and long-term growth potential, working with a buyers agent Melbourne can help bring more structure to the buying process.
1. Why Is Flemington a Strong Investment Suburb in Melbourne?
Just four kilometres from Melbourne’s CBD, Flemington offers incredible value for investment with house prices that are now just breaking the million mark. On top of its proximity to the city centre, it offers great connectivity with a network of public transport links as well as a range of conveniences and amenities that make it such a popular choice among investors and tenants alike.
- Population: 9,065
- Number of private dwellings: 5,167
- Median house price: $1,100,000 (+7.1% on December 2023)
- Median house weekly rent: $660 per week
- Average house rental yield: 3.4%
- Median unit price: $389,500 (-0.1% on December 2023)
- Median unit weekly rent: $460 per week
- Average unit rental yield: 6.0%
2. Is Elsternwick a Good Melbourne Suburb for Long-Term Investment?
One of Melbourne’s most sought-after suburbs, Elsternwick sits nine kilometres away from the city centre. It’s an ideal location for young families and professionals, offering quality options for schools, shopping centres, and even a nearby beach for recreational activities.
Current dips in property prices present an opportunity for investors who are looking for a way into the lucrative value that Elsternwick can deliver.
- Population: 10,887
- Number of private dwellings: 5,250
- Median house price: $1,845,000 (-12.8% on December 2023)
- Median house weekly rent: $890 per week
- Average house rental yield: 2.8%
- Median unit price: $705,000 (+10.2% on December 2023)
- Median unit weekly rent: $575 per week
- Average unit rental yield: 4.9%
3. Does Brighton Offer Premium Investment Potential?
Brighton is a bayside suburb 11 kilometres away from the CBD, with a reputation for hosting some of Melbourne’s wealthiest residents. This is reflected in its high house prices of over $3 million, which may turn away investors with a more modest budget.
That being said, the value of potential returns far outweighs the upfront cost of investment, especially since the suburb offers a whopping three railway stations, a vibrant strip of shopping and dining options, and some of the best schools available.
- Population: 23,252
- Number of private dwellings: 10,536
- Median house price: $3,225,000 (+2.4% on December 2023)
- Median house weekly rent: $1,350 per week
- Average house rental yield: 2.7%
- Median unit price: $1,158,000 (-4.7% on December 2023)
- Median unit weekly rent: $722 per week
- Average unit rental yield: 3.8%
4. Why Is Narre Warren South Appealing for Family-Focused Investors?
Narre Warren South is located in Melbourne’s outer southeast area, but still retains convenient access to the city via a range of transport options. The suburb has seen rapid growth in recent years with the addition of major retail centres and recreational facilities in the neighbourhood, and is now highly favoured among families for its convenience and relatively affordable housing options.
For investors comparing affordability and professional support, understanding buyers agent fees Melbourne can help clarify the full cost of purchasing before committing to a suburb or property.
- Population: 30,909
- Number of private dwellings: 9,229
- Median house price: $820,000 (-1.2% on December 2023)
- Median house weekly rent: $590 per week
- Average house rental yield: 4.0%
5. Is Moonee Ponds a Strong Inner-City Investment Suburb?
Moonee Ponds is an inner-city suburb located six kilometres from the CBD, boasting a mix of heritage and modern housing options for professionals that form the majority of the market. Its attractiveness as a location is further bolstered by its offering of vibrant lifestyle and recreational facilities from cafes to the Maribyrnong River.
- Population: 16,224
- Number of private dwellings: 8,081
- Median house price: $1,452,000 (-4.6% on December 2023)
- Median house weekly rent: $700 per week
- Average house rental yield: 2.8%
- Median unit price: $577,500 (+15.5% on December 2023)
- Median unit weekly rent: $530 per week
- Average unit rental yield: 5.5%
6. Why Is Cheltenham Popular With Melbourne Property Investors?
Rapidly-gentrifying Cheltenham is a popular choice among investors looking for good value in terms of amenities. The suburb offers all the expected conveniences of city living alongside easy access to the CBD via the express train at 19 minutes. Some other highlights of Cheltenham include stunning golf courses and close proximity to the beach.
A property buyers advocate Melbourne can help investors assess whether suburbs like Cheltenham offer the right mix of lifestyle appeal, transport access, rental demand, and long-term value.
- Population: 23,992
- Number of private dwellings: 10,468
- Median house price: $1,210,000 (+1.3% on December 2023)
- Median house weekly rent: $725 per week
- Average house rental yield: 3.3%
- Median unit price: $644,625 (-2.3% on December 2023)
- Median unit weekly rent: $520 per week
- Average unit rental yield: 4.5%
7. Is Parkdale a Good Bayside Suburb for Investment?
Parkdale is sandwiched between its own local beach and the bustling side of the Nepean Highway, offering the best of both worlds for residents and families in the area.
The urban side of Parkdale features a whole host of amenities including several top schools, great kindergartens, multiple parks and reserves for recreation, and more. Coupled with relatively affordable house prices that are showing consistent growth, Parkdale is ripe with opportunity for investment.
- Population: 12,308
- Number of private dwellings: 5,195
- Median house price: $1,490,000 (+9.5% on December 2023)
- Median house weekly rent: $750 per week
- Average house rental yield: 2.9%
- Median unit price: $760,000 (+2.7% on December 2023)
- Median unit weekly rent: $525 per week
- Average unit rental yield: 4.0%
8. Why Is Burnside Heights a Hidden Gem for Investors?
The staggeringly low house prices in Burnside Heights make it a hidden gem on this list, especially for investors looking for a prudent investment opportunity. With a rapidly growing population and rising development of essential amenities, Burnside Heights offers increasing residential appeal for families and young couples.
- Population: 6,377
- Number of private dwellings: 1,808
- Median house price: $747,500 (+1.0% on December 2023)
- Median house weekly rent: $550 per week
- Average house rental yield: 4.0%
9. Does Middle Park Offer Premium Growth Potential?
Located 5km from the Melbourne CBD, the inner-city suburb of Middle Park offers easy access to modern amenities while maintaining a quiet and friendly village atmosphere. The median housing values are an accurate reflection of the suburb’s high demand, with house prices well over the $2 million mark.
Investors undeterred by Middle Park’s premium suburbs can expect high potential for growth in 2025 and beyond.
- Population: 4,000
- Number of private dwellings: 2,013
- Median house price: $2,760,000 (+11.0% on December 2023)
- Median house weekly rent: $950 per week
- Average house rental yield: 2.4%
- Median unit price: $810,000 (+14.1% on December 2023)
- Median unit weekly rent: $600 per week
- Average unit rental yield: 4.3%
How Should Investors Choose the Right Melbourne Suburb?
Note: The above data insights are courtesy of the 2021 Australian Bureau of Statistics (ABS) Census data and Real Estate.com.au.
Melbourne offers a wide mix of investment opportunities, from premium bayside suburbs to more affordable growth areas on the city’s outer fringe. The right suburb will depend on your budget, borrowing capacity, rental income goals, and long-term investment strategy.
