Best Suburbs to Invest in Melbourne 2025

The latest CoreLogic Hedonic Home Value Index, released on January 2nd, shows Melbourne’s housing market experienced a modest decline of -3.0% in the past year.

The median house price in Melbourne is now $917,616 and the median unit price is sitting at $607,414, according to CoreLogic. After booming through 2020 and 2021, Melbourne housing values have continued to fall from their peak in February 2022.

According to realeastate.com.au, despite the recent price declines, Melbourne still attracts people for employment opportunities, indicating strong future growth. The experts forecast Melbourne to be the strongest growing capital city for population. This creates a window of opportunity to get into the property market as the Melbourne market picks up again.

So here are ten suburbs in Melbourne to watch if you’re thinking of making an investment this year.

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CRANBOURNE

Cranbourne,43km south-east of Melbourne’s Central Business District, is one of the fastest growing areas in Melbourne’s south-east. It is a hot spot for first-time home buyers and seasoned investors looking for strong capital growth. 

According to realestate.com.au, median property prices in the past year ranged from $491,000 for units (up 9.6% YoY) to $651,000 for houses (up by 0.2% YoY)

For investors, Cranbourne houses rent for $507 a week with an annual rental yield of 4.1%.

CROYDON

Known for its leafy, green spaces and family-friendly atmosphere, Croydon in the eastern suburbs of Melbourne is emerging as one of the top suburbs for property investment. Croydon South specifically is gaining popularity with home buyers and investors as higher rental prices are offering promising rental yields.

Data from realestate.com.au shows median property prices have ranged from $680,000 for units to $900,000 for houses.

Investors looking to rent their property could find a profitable investment, with units renting for $510 per week with a rental yield of 4.3%, and houses rent for $600 per week with a 3.7% yield.

PAKENHAM

Regarded as one of Melbourne’s fastest growing suburbs over the last 20 years, Pakenham has seen a substantial increase of new residential development and infrastructure and its population is only expected to continue increasing.

Located 54km south-east of the CBD, Pakenham is an established suburb with access to great schools, shops, and direct transport links into the city.

The suburb is home to Satterley’s Maple Grove estate, located in The Pakenham East Precinct.This fresh new community has greenspaces, local schools and established shops and transport options.

Realestate.com.au data shows the median property price over the past year is $650,000 for houses, while the rental yield stands at 4.3% with a median weekly rent of $520, up 9.5% over the previous 12 months.

Satterley’s new Maple Grove estate, with new land and house and land packages available, is set to be a popular option for homebuyers looking to move into the established suburb.

View land for sale Pakenham

Maple Grove, Pakenham artist impression of public open space

DONNYBROOK

Just 32km north of the Melbourne CBD you’ll find Donnybrook, a suburb that is set to experience tremendous population growth. Formerly used as grazing paddocks and farmland, Donnybrook is a relatively new suburb that has been rezoned for residential use.

New families and investors have been attracted to the area not only for its great location, but its steady price growth and promising rental returns.  with convenient access to nearby Craigieburn Central Shopping Centre and transport options via Hume Freeway and Donnybrook Railway Station.

The suburb is home to Satterley’s Heartford estate, nestled in a flourishing corridor of Donnybrook. Heartford offers established amenities, natural surrounds and a connected community with land and house and land packages now available.

Realestate.com.au data shows the median sold price over the past year is $650,000 for houses, up 3.3% over the previous 12 months.

Rental values are also attractive in the area, with houses averaging a 4.2% rental yield and a median rent of $520 a week, up 8.3% over the previous 12 months.

View land for sale Donnybrook

ST HELENA

Considered a true hidden gem by some, St Helena is a small leafy suburb located 26km north-east of the Melbourne CBD.

Surrounded by generous open spaces, the suburb is home to Far East Organization’s St Helena Place, Marketing and Managed by Satterley, combining the quiet charm of family life with connectivity to urban living. The community offers quality education, urban amenities and a variety of transport options.

Realestate.com.au data shows the median sold price over the past year is $1,197,500 for houses, up 1.9% over the previous 12 months. For investors, the median rental price is $740 per week, up by 25%, with an attractive rental yield of 3.4%.

Satterley’s St Helena Place estate, launched in February 2022, promises to offer a boutique residential community surrounded by fully rejuvenated wetlands – an exclusive “hidden oasis” within the larger and more well-known Greensborough area.

View homes for sale St Helena

GREENVALE

Located 21km north of Melbourne and just 10 minutes’ drive to Melbourne Airport, Greenvale has been praised for its perfect position.

A hugely popular suburb, which has seen incredible demand for Satterley’s True North community, Greenvale has experienced solid growth in recent months. With local parks, easy access to shops, schools and transport options, True North is the choice for land and house buyers in Greenvale.

Realestate.com.au data shows the median sold price over the past year is $875,000 for houses, up 4.2% in the previous 12 months.

On the rental front, the suburb averages a rental return of 4.3% and a median rent of $622 a week, up 11.2% over the previous 12 months.

View land for sale in Greenvale

True North, Greenvale

WERRIBEE

Werribee is located approximately 32km southwest of Melbourne Central Business Dsitrcit, and is one of the fastest growing suburbs in Victoria. 

According to realestate.com.au, the median property prices ranged from $435,000 for units to $620,000 for houses. 

For investors, the rental price is $400 per week for units with a rental yield of 5.1%, and $480 per week for houses with a 4.2% yield. 

CAROLINE SPRINGS

Located in the outer western suburbs of Melbourne, Caroline Springs has seen a notable rise in its property market. 

Data from realestate.com.au shows median property prices have ranged from $512,500 for units to $745,000 for houses.

Investors looking to rent their property could find profitable opportunities with units renting for 4.8% per week with a rental yield of 4.9%, and houses renting for $530 with a 3.9% yield.

SEAFORD

Head 36km south-east on the Nepean Highway and you’ll find Seaford, a bayside beauty.

According to realestate.com.au, the median house value stands at $800,000. Investors may also see opportunity in Seaford with rent going for $510 a week, up 8.5% over the previous 12 months, with an average rental return of 3.3%.

As well as the bayside lifestyle, there is Kananook Creek and the Seaford Wetlands, a 305ha nature reserve listed on the Register of the National Estate, which is home to a variety of bird life including several rare and endangered migratory species.

WYNDHAM VALE

Wyndham Vale is a suburb located approximately 30km south west of Melbourne Central Business District. With improved train links and the ongoing development of local amenities, the suburb offers significant potential for capital growth. Investors are drawn to the area for its affordability and increasing rental demand.

Realestate.com.au data shows the median house price over the past year is $579,950 for houses, and $445,000 for units, up by 2.3%.

For investors, the suburb averages a rental yield of 4.9% for units with a median rent of $410 per week (up 10.8%), and 4.2% yield for houses with a median rent of $470 per week (up 9.3%).

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