Current Melbourne Market Update
Melbourne is a market I’m watching closely right now. In my view, a number of areas are currently undervalued and I believe there’s real growth ahead in the right suburbs for buyers who are paying attention.
As a buyers agent, the best time to buy is when the market has pulled back and opportunity exists to secure a strong asset in the right location. What I see too often is buyers doing the opposite. They’re trying to enter when the market is at its peak, competing against a flood of other buyers and paying too much for the privilege. A lot of that comes down to fear of missing out, and it’s one of the most expensive mistakes a buyer can make.
Buyers want to be looking for when the property market shifts away from being a sellers market. This can be driven by interest rates, the economy, political uncertainty or simply a change in sentiment, is when the real opportunities open up. Properties that might have had five competing offers six months earlier can suddenly be negotiated well under market value.
There are always nuances of course. Not every discounted property is a good buy, and thorough due diligence is essential to make sure what you’re purchasing is a superior asset in a location with genuine long term merit. But for buyers who are strategic and patient, Melbourne right now is worth a very serious look.
Best Suburbs in Melbourne
Melbourne’s property market can move fast and suburb selection is everything. Having worked across both Sydney and Melbourne, I understand which areas are attracting serious buyers right now, where genuine value still exists and where the long term growth potential is strongest.
Melbourne is a city where the right suburb can make or break a purchase. From the gentrified streets of Brunswick to the prestige end of Malvern and South Yarra, each area has its own dynamic, its own price trajectory and its own buyer profile. This guide breaks down the suburbs worth paying attention to and what you actually need to know before buying in each one.
Factors to Consider when Buying a Property
Suburb selection is one of the most important decisions you’ll make and it goes well beyond just price. My advice is always to start with lifestyle. Where do you actually want to live and why? The answer to that question will narrow your search faster than any data.
Budget matters of course, and Melbourne has significant price variation from one suburb to the next. Lifestyle fit, commute, school zones, future development and the long term trajectory of the area all need to be cohesive. A cheaper suburb isn’t always the right suburb.
If you’re unsure where to start, that’s exactly what a Melbourne buyers agent is there for, to cut through the noise and help you focus on the areas that genuinely match your brief.
Brunswick
Median House Price: $1,315,000 | Median Unit Price: $625,000
Brunswick is one of those suburbs that has genuinely transformed over the last decade and the numbers reflect this. Sitting just 5.1km from the CBD it attracts a mix of young professionals, creatives and families who want proximity to the city without the price tag of the inner east. The café culture here is some of the best in Melbourne, Sydney Road alone has more good coffee and food options than most entire suburbs. Tram and train access is excellent which matters when you’re assessing long term rental demand and owner occupier appeal. For buyers looking at the sub $1.5M house market close to the CBD, Brunswick remains one of the stronger options.
Malvern
Median House Price: $2,700,000 | Median Unit Price: $720,000
Malvern sits at the prestige end of Melbourne’s inner east and the median price reflects that. Period homes on wide tree lined streets, some of Melbourne’s best private schools within easy reach and a genuine sense of community that’s hard to find this close to a CBD. This is a suburb that attracts serious long term owner occupiers, the kind of buyers who research thoroughly and hold for decades. That stability is reflected in how the suburb holds its value through market cycles. If your budget stretches here it’s a strong long term asset.
St Kilda
Median House Price: $1,515,000 | Median Unit Price: $495,000
St Kilda is one of Melbourne’s most recognised suburbs and for good reason. The beach foreshore, the energy of Acland and Fitzroy Streets and the proximity to the CBD at around 6km make it consistently appealing to both buyers and renters. The unit market here is worth paying attention to, $495,000 median for a suburb with beach access and strong lifestyle appeal is genuinely competitive. Albert Park next door adds significant green space and recreational value. For investors specifically, the rental demand here is as consistent as anywhere in Melbourne.
South Yarra
Median House Price: $1,980,000 | Median Unit Price: $540,000
South Yarra is Melbourne’s equivalent of Sydney’s Double Bay, high end, well located and consistently in demand from affluent owner occupiers and professionals. Chapel Street and Toorak Road set the lifestyle tone. The architecture ranges from Victorian terrace homes through to modern luxury apartments and the suburb sits only 4km from the CBD. What stands out from an investment perspective is the consistent buyer quality. South Yarra rarely attracts distressed sales which means the market holds well when conditions soften elsewhere.
Fitzroy
Median House Price: $1,660,000 | Median Unit Price: $780,000
Fitzroy is one of Melbourne’s originals and it has never really gone out of favour. The historic terrace homes along the back streets are some of the most sought after in the city and the lifestyle offering on Brunswick Street and Gertrude Street is hard to match. The food, art galleries, bars and boutiques give it a character that newer suburbs simply can’t replicate. At 2.5km from the CBD it also has one of the best proximity stories in Melbourne. The unit median of $780,000 reflects how tightly held this suburb is, buyers here don’t sell often.
Yarraville
Median House Price: $1,182,000 | Median Unit Price: $715,000
Yarraville is one of those suburbs I point buyers to when they want genuine character at a more accessible price point. Sitting 10km west of the CBD it has retained its identity in a way that a lot of Melbourne’s inner suburbs haven’t. The village feel around Anderson Street, the art deco Sun Theatre, the tree lined streets of period homes. It attracts a loyal buyer base of families and professionals who tend to hold long term which keeps stock tight and supports values. The infrastructure story for the western suburbs is also improving which adds a medium term tailwind for this area.
Richmond Vic
Median House Price: $1,380,000 | Median Unit Price: $625,000
Richmond is 3km from the CBD and one of Melbourne’s most consistently in demand suburbs. Bridge Road and Swan Street between them cover almost every food, café and retail need you could have. The housing mix of original Victorian cottages alongside modern apartments gives buyers genuine choice at different price points. What makes Richmond stand out from a buyers perspective is the suburb’s versatility. It works equally well for owner occupiers who want walkability and lifestyle, and for investors who want strong rental demand from professionals working in the CBD. MCG and Melbourne Park next door don’t hurt the profile either.
Frequently Asked Questions
Is Melbourne a good place to invest in property right now?
In my opinion yes, particularly in the right suburbs. Melbourne has underperformed compared to Sydney over the last few years which actually creates opportunity for savvy buyers. Several areas are currently undervalued relative to their fundamentals and I expect we’ll see a correction in that gap over the medium term. The key as always is suburb selection and buying the right asset. Not every property in a good suburb is a good buy.
What is the best suburb in Melbourne to buy property?
There’s no single answer to this because it depends entirely on your budget, lifestyle and strategy. What I can say is that the suburbs consistently worth looking at are those with strong owner occupier demand, limited stock, good infrastructure and a track record of holding value through market cycles. Brunswick, Fitzroy, Richmond and South Yarra all tick those boxes at different price points. For families specifically Malvern and its surrounds are hard to look past.
Which Melbourne suburbs have the best capital growth potential?
Based on what I’m seeing in the market right now the inner west is an area worth watching. Yarraville and surrounds have strong fundamentals and improving infrastructure. The inner north around Brunswick and Fitzroy remains consistently in demand. At the prestige end South Yarra and Malvern have historically been resilient through downturns which matters as much as growth when you’re making a significant purchase.
Do I need a buyers agent to buy in Melbourne?
You don’t need one but having the right representation makes a significant difference. Particularly if you’re buying from interstate or you don’t have deep knowledge of Melbourne’s micro markets. Each suburb here has its own dynamics, its own agent relationships and its own off market activity. Without that local knowledge you’re essentially navigating blind. A good buyers agent pays for themselves through better access, due diligence and stronger negotiation power.
How much do I need to buy in Melbourne?
It depends on the suburb and the property type. At the entry level you can access good quality units in well located suburbs from around $500,000. For houses in the inner suburbs you’re generally looking at $1.1M and above. The prestige end of the market such as Malvern, South Yarra, Fitzroy sits well above $1.8m for houses. Getting clear on your budget early and understanding what that budget actually buys in each suburb is one of the first conversations worth having.
What should I look for when choosing a suburb in Melbourne?
Start with lifestyle fit, where do you actually want to live day to day. Then look at the fundamentals: proximity to the CBD, public transport, school zones if relevant, local amenities and the quality of the stock on market. From an investment perspective I’d add owner occupier demand, historical price performance and what’s happening with local infrastructure. The suburbs that tick most of those boxes tend to be the ones that hold their value and grow consistently over time.
Can a Sydney buyers agent help me buy in Melbourne?
Yes and in my experience having a buyers agent who understands both markets is actually an advantage. We know how Melbourne compares to Sydney on value, we have established agent relationships across both cities and we can give you an objective view that’s not shaped by proximity or local bias. If you’re considering Melbourne as an investment or relocation we’re well placed to help you navigate it.
