Top 10 Suburbs to Invest in Across MELBOURNE: Reviewed and Ranked in 2024

Identifying the top suburbs to invest in across Melbourne can be challenging, considering the cities extensive and varied suburbs and local government areas. From the vibrant streets of Fitzroy to the prestigious avenues of Hawthorn, these suburbs exemplify Melbourne’s most dynamic opportunities for both investment and lifestyle. Choosing the wrong suburb can lead to potential problems such as poor rental returns, low capital growth, and limited employment opportunities. This article will provide you with a thorough guide to help you make an informed investment decision and identify the right location.

10. Tullamarine – Total Score: 70/100

Tullamarine presents a balanced mix of moderate property prices and reasonable rental yields, though it faces challenges with public transport and local amenities.

Scoring Criteria:

• Market Growth: 7/10
• Rental Yield: 7/10
• Employment Opportunities: 8/10
• Population Growth: 7/10
• Quality of Schools: 6/10
• Community and Lifestyle: 6/10
• Median House Price: 8/10
• Public Transport and Infrastructure: 5/10
• Local Amenities: 7/10
• Rental Vacancy Rate: 9/10

Tullamarine offers promising rental yields and an affordable median house price. The suburb’s close proximity to Melbourne Airport contributes to steady employment opportunities, with many jobs available in aviation and related industries. Recent statistics indicate a combined rental yield of around 3.8%, which is attractive for investors. Additionally, Tullamarine has seen a consistent population growth, providing a stable demand for rental properties.

Median prices for Tullmarine, Vic (3043), as of July 2024:

• Houses – $720,000
• Units – $540,000

House and unit data provided by, https://www.realestate.com.au/vic/tullamarine-3043/

Despite these positives, Tullamarine’s public transport infrastructure is underdeveloped, leading to longer commute times. The quality of schools in the area is average, with limited options for families seeking top-tier education. Local amenities, including shopping and recreational facilities, are also somewhat lacking compared to other suburbs.

In summary, Tullamarine stands out for its affordable property prices and stable rental yields. However, potential investors should consider the limitations in public transport and amenities before making a decision.

9. Sunshine – Total Score: 71/100

Sunshine offers significant growth potential and good public transport links but struggles with higher crime rates and variable school quality.

Scoring Criteria:

• Market Growth: 8/10
• Rental Yield: 8/10
• Employment Opportunities: 7/10
• Population Growth: 7/10
• Quality of Schools: 6/10
• Community and Lifestyle: 6/10
• Median House Price: 7/10
• Public Transport and Infrastructure: 8/10
• Local Amenities: 7/10
• Rental Vacancy Rate: 7/10

Sunshine has emerged as a growth hotspot, with substantial infrastructure investments driving market growth. The suburb boasts excellent public transport connections, including a major train station and numerous bus routes, making it highly accessible. Employment opportunities are diverse, supported by the Sunshine Hospital and various local businesses. With a combined strong rental yield of 4.2%, Sunshine offers a solid return on investment. The community is also vibrant, with numerous cultural and recreational events enhancing the local lifestyle.

Median prices for Sunshine, Vic (3020), as of July 2024:

• Houses – $807,000
• Units – $487,500

House and unit data provided by, https://www.realestate.com.au/vic/sunshine-3020/

However, Sunshine faces challenges with higher crime rates, which can deter potential renters and buyers. The quality of schools varies, with some institutions not meeting higher educational standards. Furthermore, while the median house price is attractive, it has experienced volatility, impacting long-term investment stability.

Overall, Sunshine is a suburb with strong growth potential and excellent transport links. Investors should weigh these benefits against the higher crime rates and variable school quality.

8. Coburg – Total Score: 73/100

Coburg combines a rich cultural heritage with strong rental yields, though it faces issues with congestion and higher living costs.

Scoring Criteria:

• Market Growth: 8/10
• Rental Yield: 8/10
• Employment Opportunities: 7/10
• Population Growth: 7/10
• Quality of Schools: 7/10
• Community and Lifestyle: 8/10
• Median House Price: 6/10
• Public Transport and Infrastructure: 7/10
• Local Amenities: 8/10
• Rental Vacancy Rate: 7/10

Coburg is a culturally rich suburb that has seen substantial market growth in recent years. Its strong rental yield, making it a lucrative choice for investors. The suburb benefits from excellent public transport options, including trams, trains, and buses. Employment opportunities are robust, particularly in retail and education sectors, thanks to the vibrant local economy. The community enjoys a variety of local amenities, such as parks, cafes, and cultural centres, enhancing the quality of life.

Median prices for Coburg, Vic (3058), as of July 2024:

• Houses – $1,210,000
• Units – $546,500

House and unit data provided by, https://www.realestate.com.au/vic/coburg-3058/

Despite these advantages, Coburg suffers from traffic congestion, particularly during peak hours, which can affect daily commute times. The cost of living is relatively high, reflecting the suburb’s popularity and demand. Additionally, while the median house price is on the higher side, it offers less affordability compared to other investment options.

In conclusion, Coburg offers a blend of cultural vibrancy and strong rental yields, but investors should consider the congestion and higher living costs.

7. Preston – Total Score: 74/100

Preston offers a dynamic community with strong growth and rental yields but grapples with affordability and school quality issues.

Scoring Criteria:

• Market Growth: 8/10
• Rental Yield: 7/10
• Employment Opportunities: 8/10
• Population Growth: 8/10
• Quality of Schools: 6/10
• Community and Lifestyle: 8/10
• Median House Price: 6/10
• Public Transport and Infrastructure: 8/10
• Local Amenities: 8/10
• Rental Vacancy Rate: 7/10

Preston is known for its dynamic community and strong market growth, attracting young professionals and families alike. The suburb has seen impressive population growth, driven by its appealing lifestyle and amenities. With an annual combined  rental yield of 3.9%, Preston is a solid investment option. Public transport infrastructure is robust, with multiple tram and train options connecting residents to the city. Local amenities, including the Preston Market and numerous cafes and parks, contribute to a vibrant community atmosphere.

Median prices for Preston, Vic (3072), as of July 2024:

• Houses – $1,185,000
• Units – $575,000

House and unit data provided by, https://www.realestate.com.au/vic/preston-3072/

However, the median house price in Preston is relatively high, posing affordability challenges for some investors. The quality of schools is mixed, with some institutions requiring improvement to meet higher standards. Additionally, while the rental yield is strong, it is slightly lower than in other comparable suburbs.

In summary, Preston’s dynamic community and strong growth make it an attractive investment destination, despite its higher median house price and school quality issues.

6. Brunswick – Total Score: 76/100

Brunswick offers a vibrant lifestyle with excellent amenities and public transport but faces challenges with high property prices and congestion.

Scoring Criteria:

• Market Growth: 9/10
• Rental Yield: 7/10
• Employment Opportunities: 8/10
• Population Growth: 8/10
• Quality of Schools: 7/10
• Community and Lifestyle: 9/10
• Median House Price: 5/10
• Public Transport and Infrastructure: 8/10
• Local Amenities: 9/10
• Rental Vacancy Rate: 6/10

Brunswick is celebrated for its vibrant lifestyle, excellent amenities, and strong market growth. The suburb offers a combined rental yield of 4.0%, supported by high demand from young professionals and families. Employment opportunities are plentiful, with a diverse range of local businesses and proximity to the city centre. Public transport options are abundant, including trams, trains, and buses, providing easy access to other parts of Melbourne. The community enjoys numerous cafes, restaurants, and cultural venues, making Brunswick a lively and attractive place to live.

Median prices for Brunswick, Vic (3056), as of July 2024:

• Houses – $1,266,000
• Units – $555,000

House and unit data provided by, https://www.realestate.com.au/vic/brunswick-3056/

Despite its many positives, Brunswick’s high property prices can be a barrier for some investors. The suburb also experiences significant traffic congestion, particularly during peak hours, which can impact the daily commute. Additionally, while the rental yield is robust, it does not outpace some other suburbs in Melbourne.

Overall, Brunswick offers a vibrant lifestyle and excellent amenities, though potential investors should be mindful of the high property prices and congestion.

5. Footscray – Total Score: 79/100

Footscray is a burgeoning suburb with strong market growth and excellent amenities, but it struggles with higher crime rates and school quality issues.

Scoring Criteria:

• Market Growth: 9/10
• Rental Yield: 8/10
• Employment Opportunities: 8/10
• Population Growth: 9/10
• Quality of Schools: 6/10
• Community and Lifestyle: 9/10
• Median House Price: 7/10
• Public Transport and Infrastructure: 8/10
• Local Amenities: 8/10
• Rental Vacancy Rate: 7/10

Footscray has emerged as a burgeoning suburb, benefiting from strong market growth and excellent local amenities. The combined rental yield of 4.2% is attractive for investors, supported by a diverse population and increasing demand for rental properties. Employment opportunities are plentiful, particularly in the healthcare and education sectors, with the presence of Victoria University and Footscray Hospital. Public transport infrastructure is robust, offering easy access to the city and surrounding areas. The vibrant community is enriched with cultural diversity, offering a range of dining and shopping options.

Median prices for Footscray, Vic (3011), as of July 2024:

• Houses – $950,000
• Units – $519,000

House and unit data provided by, https://www.realestate.com.au/vic/footscray-3011/

However, Footscray faces challenges with higher crime rates, which can be a concern for residents and investors. The quality of schools in the area is mixed, with some institutions requiring improvement. Additionally, while the median house price is reasonable, it has seen fluctuations, impacting investment stability.

In summary, Footscray presents strong market growth and excellent amenities, but potential investors should consider the higher crime rates and school quality issues.

4. South Yarra – Total Score: 81/100

South Yarra offers a luxurious lifestyle with top-tier amenities and strong market growth but faces challenges with high property prices and rental competition.

Scoring Criteria:

• Market Growth: 9/10
• Rental Yield: 7/10
• Employment Opportunities: 9/10
• Population Growth: 9/10
• Quality of Schools: 8/10
• Community and Lifestyle: 9/10
• Median House Price: 5/10
• Public Transport and Infrastructure: 9/10
• Local Amenities: 9/10
• Rental Vacancy Rate: 7/10

South Yarra is synonymous with luxury and top-tier amenities, making it a highly sought-after suburb. The strong market growth and vibrant community attract both investors and residents. The suburb offers an annual combined  rental yield of 3.8%, supported by high demand from professionals and families. Employment opportunities are abundant, particularly in the retail and hospitality sectors, with the presence of numerous high-end shops and restaurants. Public transport infrastructure is excellent, with multiple train and tram options providing easy access to the city. Local amenities, including parks, schools, and cultural venues, contribute to a high quality of life.

Median prices for South Yarra, Vic (3141), as of July 2024:

• Houses – $2,150,000
• Units – $545,000

House and unit data provided by, https://www.realestate.com.au/vic/south-yarra-3141/

Despite its many advantages, South Yarra’s high property prices can be a barrier for some investors. The suburb also experiences high competition for rental properties, which can impact vacancy rates. Additionally, while the rental yield is strong, it does not outpace some other suburbs in Melbourne.

In conclusion, South Yarra offers a luxurious lifestyle and top-tier amenities, but potential investors should consider the high property prices and rental competition.

3. Richmond – Total Score: 83/100

Richmond offers a dynamic urban lifestyle with excellent amenities and strong market growth but faces challenges with congestion and higher living costs.

Scoring Criteria:

• Market Growth: 9/10
• Rental Yield: 8/10
• Employment Opportunities: 9/10
• Population Growth: 8/10
• Quality of Schools: 8/10
• Community and Lifestyle: 9/10
• Median House Price: 6/10
• Public Transport and Infrastructure: 9/10
• Local Amenities: 9/10
• Rental Vacancy Rate: 8/10

Richmond is known for its dynamic urban lifestyle, excellent amenities, and strong market growth. The suburb offers a combined rental yield of 4.1%, supported by high demand from young professionals and families. Employment opportunities are plentiful, particularly in the retail and hospitality sectors, with the presence of numerous shops and restaurants. Public transport infrastructure is robust, with multiple tram and train options providing easy access to the city. Local amenities, including parks, schools, and cultural venues, contribute to a vibrant community atmosphere.

Median prices for Richmond, Vic (3121), as of July 2024:

• Houses – $1,360,000
• Units – $595,000

House and unit data provided by, https://www.realestate.com.au/vic/richmond-3121/

However, Richmond suffers from traffic congestion, particularly during peak hours, which can affect daily commute times. The cost of living is relatively high, reflecting the suburb’s popularity and demand. Additionally, while the median house price is attractive, it has experienced volatility, impacting long-term investment stability.

Overall, Richmond offers a blend of dynamic urban living and strong market growth, but investors should consider the congestion and higher living costs.

2. Hawthorn – Total Score: 85/100

Hawthorn combines a prestigious lifestyle with strong market growth and excellent amenities, but it faces challenges with high property prices and rental competition.

Scoring Criteria:

• Market Growth: 9/10
• Rental Yield: 8/10
• Employment Opportunities: 9/10
• Population Growth: 8/10
• Quality of Schools: 9/10
• Community and Lifestyle: 9/10
• Median House Price: 6/10
• Public Transport and Infrastructure: 9/10
• Local Amenities: 10/10
• Rental Vacancy Rate: 7/10

Hawthorn is synonymous with prestige and high-quality living, making it a highly sought-after suburb. The strong market growth and vibrant community attract both investors and residents. The suburb offers a combined rental yield of 3.9%, supported by high demand from professionals and families. Employment opportunities are abundant, particularly in the education and healthcare sectors, with the presence of numerous schools and medical facilities. Public transport infrastructure is excellent, with multiple train and tram options providing easy access to the city. Local amenities, including parks, schools, and cultural venues, contribute to a high quality of life.

Median prices for Hawthorn, Vic (3122), as of July 2024:

• Houses – $2,860,000
• Units – $580,000

House and unit data provided by, https://www.realestate.com.au/vic/hawthorn-3122/

Despite its many advantages, Hawthorn’s high property prices can be a barrier for some investors. The suburb also experiences high competition for rental properties, which can impact vacancy rates. Additionally, while the rental yield is strong, it does not outpace some other suburbs in Melbourne.

In conclusion, Hawthorn offers a prestigious lifestyle and strong market growth, but potential investors should consider the high property prices and rental competition.

1. Fitzroy – Total Score: 88/100

Fitzroy stands out for its vibrant community, excellent amenities, and strong market growth but faces challenges with high property prices and rental competition.

Scoring Criteria:

• Market Growth: 10/10
• Rental Yield: 9/10
• Employment Opportunities: 9/10
• Population Growth: 9/10
• Quality of Schools: 8/10
• Community and Lifestyle: 10/10
• Median House Price: 6/10
• Public Transport and Infrastructure: 9/10
• Local Amenities: 10/10
• Rental Vacancy Rate: 8/10

Fitzroy is renowned for its vibrant community, excellent amenities, and strong market growth, making it the top suburb to invest in Melbourne. The suburb offers an annual rental yield of greater than 3%, supported by high demand from young professionals and families. Employment opportunities are plentiful, particularly in the creative and hospitality sectors, with the presence of numerous cafes, restaurants, and galleries. Public transport infrastructure is robust, with multiple tram and bus options providing easy access to the city. Local amenities, including parks, schools, and cultural venues, contribute to a vibrant and attractive community atmosphere.

Median prices for Fitzroy, Vic (3065), as of July 2024:

• Houses – $1,580,000
• Units – $750,000

House and unit data provided by, https://www.realestate.com.au/vic/fitzroy-3065/

Despite its many advantages, Fitzroy’s high property prices can be a barrier for some investors. The suburb also experiences high competition for rental properties, which can impact vacancy rates. Additionally, while the rental yield is robust, it does not outpace some other suburbs in Melbourne.

Fitzroy offers a vibrant community, excellent amenities, and strong market growth, making it the best suburb to invest in across Melbourne in 2024. Potential investors should consider the high property prices and rental competition, but the overall investment potential is outstanding.

How I scored each suburb

Market Growth

Market Growth is a critical indicator of a suburb’s future potential for capital appreciation. It measures the increase in property values over a specific period, reflecting the area’s economic vitality and attractiveness to investors. 

• A suburb scoring 1 on market growth would have stagnant or declining property values. For example, Melton has shown minimal market growth over recent years, making it a less appealing investment destination. 
• Conversely, a suburb scoring 10 on market growth would exhibit significant and consistent property value increases. For instance, Kew has experienced robust market growth, driven by high demand and substantial development, making it an excellent investment choice.

Rental Yield

Rental Yield represents the annual rental income as a percentage of the property’s value. It is crucial for investors seeking steady cash flow and return on investment. 

• A suburb scoring 1 on rental yield would have low or negative rental returns. For example, Werribee has struggled with low rental yields, making it less attractive for investment. 
• On the other hand, a suburb scoring 10 on rental yield would offer high and consistent rental returns. For example, Clayton has demonstrated excellent rental yields, driven by its proximity to Monash University and strong demand from students.

Employment Opportunities

Employment Opportunities measure the availability and diversity of jobs within or near the suburb. High employment rates attract residents, ensuring stable demand for housing. 

• A suburb scoring 1 on employment opportunities would have limited job prospects and high unemployment rates. For example, Broadmeadows has faced significant employment challenges, reducing its attractiveness to potential residents. 
• A suburb scoring 10 on employment opportunities would offer abundant and diverse job options. For example, Docklands has a thriving business district, providing numerous employment opportunities and making it a prime investment location.

Population Growth

Population Growth indicates the increasing number of residents in a suburb, reflecting its desirability and potential for future demand. 

• A suburb scoring 1 on population growth would have stagnant or declining population numbers. For example, Laverton has shown little to no population growth, making it less appealing for investment. 
• A suburb scoring 10 on population growth would experience significant and consistent population increases. For example, Point Cook has seen rapid population growth due to its family-friendly amenities and new housing developments.

Quality of Schools

The Quality of Schools is essential for families looking to move into a suburb, affecting long-term demand for properties. 

• A suburb scoring 1 on the quality of schools would have underperforming educational institutions. For example, Dandenong has several schools with below-average performance, reducing its attractiveness for families. 
• A suburb scoring 10 on the quality of schools would boast top-tier educational facilities. For example, Glen Waverley is renowned for its excellent schools, making it highly desirable for families and investors.

Community and Lifestyle

Community and Lifestyle assess the overall liveability of a suburb, including cultural, recreational, and social amenities that enhance residents’ quality of life. 

• A suburb scoring 1 on community and lifestyle would lack recreational facilities and social cohesion. For example, Craigieburn has limited community amenities, impacting its appeal. 
• A suburb scoring 10 on community and lifestyle would offer a vibrant and well-rounded living experience. For example, St Kilda is known for its lively community, beaches, and entertainment options, making it highly attractive for investors.

Median House Price

The Median House Price reflects the affordability and accessibility of the property market within a suburb. It is a crucial factor for investors assessing potential entry points. 

• A suburb scoring 1 on median house price would have extremely high prices, limiting investment opportunities. For example, Toorak has a very high median house price, making it less accessible for many investors. 
• A suburb scoring 10 on median house price would offer affordable entry points with growth potential. For example, Thomastown has more accessible median house prices, making it an attractive option for investors.

Public Transport and Infrastructure

Public Transport and Infrastructure evaluate the connectivity and accessibility of a suburb, impacting the ease of commuting and overall convenience. 

• A suburb scoring 1 on public transport and infrastructure would have poor connectivity and limited infrastructure. For example, Caroline Springs has faced challenges with public transport access, reducing its attractiveness. 
• A suburb scoring 10 on public transport and infrastructure would offer excellent connectivity and well-developed infrastructure. For example, Southbank has comprehensive public transport options and well-developed infrastructure, enhancing its investment appeal.

Local Amenities

Local Amenities assess the availability and quality of essential services and recreational facilities, contributing to the suburb’s liveability. 

• A suburb scoring 1 on local amenities would lack essential services and recreational options. For example, Deer Park has limited local amenities, affecting its desirability. 
• A suburb scoring 10 on local amenities would offer a wide range of high-quality services and facilities. For example, Carlton is rich in local amenities, including parks, restaurants, and cultural institutions, making it highly attractive for investors.

Rental Vacancy Rate

The Rental Vacancy Rate measures the proportion of vacant rental properties in a suburb, indicating the demand for rental housing. 

• A suburb scoring 1 on rental vacancy rate would have a high percentage of vacant properties, reflecting low rental demand. For example, Cranbourne has faced high rental vacancy rates, reducing its investment potential. 
• A suburb scoring 10 on rental vacancy rate would have a low percentage of vacant properties, indicating strong rental demand. For example, Prahran has low rental vacancy rates, demonstrating high demand and making it a prime investment location.

My Comprehensive Research: Combining Data with Local Experience

To compile this list of top suburbs for investment across Melbourne in 2024, I embarked on a thorough research journey, combining quantitative data with qualitative local insights. My methodology included visiting the suburbs, analysing factual market trends, and consulting a variety of reliable sources.

Physical visits to the suburbs were an integral part of my research. I spent weekends exploring areas like Brunswick, Footscray, and South Yarra, observing the local amenities, transport infrastructure, and community vibe. For instance, I enjoyed a coffee at Seven Seeds in Carlton, dined at the renowned Vegie Bar in Fitzroy, and took leisurely walks through the parks in Richmond. These experiences provided a real-life perspective on the lifestyle and community offerings of each suburb.

I also relied heavily on research materials and data from reputable sources. Property market reports from CoreLogic and Domain offered valuable insights into market growth, rental yields, and median house prices. News articles from The Age and the Herald Sun provided context on local developments and infrastructure projects that influence investment potential. Furthermore, government Federal and Victorian State statistics on population growth and employment opportunities, from the Australian Bureau of Statistic’s (ABS) were crucial for understanding the broader economic trends affecting these suburbs.

Consulting with local real estate agents and residents also enriched my understanding of each suburb’s unique characteristics. Conversations with agents at Jellis Craig and Ray White, as well as chats with locals at cafes like St Ali in South Melbourne and Auction Rooms in North Melbourne, revealed nuanced insights that data alone couldn’t provide. These conversation and meetings, highlighted the strengths and challenges of each suburb.

In Conclusion

By combining detailed market data with personal visits and local insights, I was able to create a comprehensive and relatable ranking of the best suburbs to invest in across Melbourne. Investing in the right suburb is crucial for maximising returns and ensuring long-term growth, here are my Top 10 Suburbs to Invest in Across Melbourne in 2024:

1. Fitzroy – Total Score: 88/100
2. Hawthorn – Total Score: 85/100
3. Richmond – Total Score: 83/100
4. South Yarra – Total Score: 81/100
5. Footscray – Total Score: 79/100
6. Brunswick – Total Score: 76/100
7. Preston – Total Score: 74/100
8. Coburg – Total Score: 73/100
9. Sunshine – Total Score: 71/100
10. Tullamarine – Total Score: 70/100

Each of these suburbs offers unique opportunities and challenges, but they all stand out for their strong market growth, rental yields, employment opportunities, and overall liveability. Fitzroy leads the pack with its vibrant community and excellent amenities, while Hawthorn and Richmond follow closely, offering prestigious lifestyles and dynamic urban environments. South Yarra and Footscray provide a mix of luxury and burgeoning growth, respectively, while Brunswick and Preston are known for their dynamic communities and robust infrastructure. Coburg and Sunshine offer significant growth potential with good transport links, and Tullamarine rounds out the list with its affordable property prices and steady rental yields.

Whether you are looking for dynamic urban living, vibrant communities, or promising growth potential, these suburbs represent some of the best investment opportunities in Melbourne for 2024.

If you need assistance in navigating the property market and finding a suitable property, consider enlisting the help of a professional residential buyer’s agent. They can provide expert advice and support to help you make the best investment decisions, ensuring that you find the right property in the right suburb to meet your investment goals.

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