20 Mar 2025 10 Best Investment Suburbs in Melbourne Investors Should Watch in 2025
Finding the best investment suburbs in Melbourne can feel overwhelming, especially with the city’s ever-changing property market. Melbourne’s strong population growth, diverse economy, and massive infrastructure projects make it a hotspot for property investors chasing long-term gains and steady rental demand.
If you’re planning to buy an investment property, our experienced mortgage brokers at EverLend can guide you through the loan process—helping you find competitive rates and tailored lending solutions. Working with a broker means less stress, more choice, and expert advice every step of the way.
So, where should savvy investors be looking in 2025? Let’s dive into the top Melbourne suburbs that are set to offer the best investment opportunities.
Best Suburbs in Melbourne for Property Investors (2025)
(Updated as of October 2025)
1. Melton
Melton is one of Melbourne’s standout outer‑west suburbs for first‑time investors. It offers very affordable entry points and a growing population as Melbourne expands its western corridor. New residential estates, expanding amenities, and improving public transport make Melton attractive for renters and owner‑occupiers alike. Because of the affordability, yields tend to be stronger than inner suburbs, and there is upside for capital growth as infrastructure catches up.
- Median house price: ~ $470,000 (approx)
- Median unit price: ~ $350,000
- Average rent (house): ~ $400‑430/week
- Capital growth (houses): ~ ~8–10% per annum (recent growth corridor catch-up)
- Gross rental yield (houses): ~ 4.4% (outer‑ring yields tend to be in 4–4.5% range)
- Infrastructure Development: Upgrades in Melton railway line, new road corridors, increased amenities in new estates, extension of utilities and community facilities.
2. Werribee / Wyndham Vale
Werribee and nearby Wyndham Vale represent solid opportunities in Melbourne’s west. They balance relative affordability with good transport links (the Werribee line) and proximity to job hubs in the west. New shopping centres, schools, and health precinct expansions support ongoing demand. It is increasingly a choice for families seeking space with access to Melbourne’s job markets.
- Median house price: ~ $620,000 (Werribee)
- Median unit price: ~ $400,000–450,000
- Average rent (house): ~ $480/week (Werribee)
- Capital growth (houses): ~ ~6–8% (recent growth in the region)
- Gross rental yield (houses): ~ 4.2%
- Infrastructure Development: Ongoing works on rail upgrades, road expansions linking to Princes Freeway, new public amenities and local government investment in community infrastructure.
3. Cranbourne / Cranbourne East
Cranbourne and its eastern precincts remain attractive for investors chasing long‑term growth. The area is well served by expansions in suburban estates, and transport links (rail line improvements) are helping reduce commuting time. With strong demand from families and relatively affordable housing stock, it continues to be a draw for first‑time and mid‑tier investors.
- Median house price: ~ $651,000
- Median unit price: ~ $450,000–500,000
- Average rent (house): ~ $507/week
- Capital growth (houses): ~ ~5–7% (estimate, given growth corridor momentum)
- Gross rental yield (houses): ~ 4.1%
- Infrastructure Development: Rail line upgrades (Cranbourne line), road expansions, new schools and shopping precincts, utility and community services in new estates.
4. Tarneit
Tarneit remains a staple pick in the outer west for investors chasing growth + yield. It is already well known for being more “on the move” than many outer suburbs, with good transport, schools, and amenity development. For someone entering the market, it offers better cash flow potential than inner suburbs.
- Median house price: ~ $650,000 (some reports cite under $700k)
- Median unit price: ~ $400,000–450,000
- Average rent (house): ~ $440–480/week
- Capital growth (houses): ~ ~6–8%
- Gross rental yield (houses): ~ ~4.0%
- Infrastructure Development: Tarneit Station upgrades, expansion of road links, new estates with community facilities, growing commercial and retail precincts.
5. Sunshine / Sunshine West / Albion
Sunshine and its surrounding precincts (Sunshine West, Albion) are increasingly appealing to first-time investors wanting a balance of affordability + connectivity. These suburbs are closer to the city, with good train connections, and are witnessing gentrification and infill development. Their mid-distance makes them palatable for renters who still want access to inner Melbourne.
- Median house price: ~ $700,000–750,000 (Sunshine area)
- Median unit price: ~ $450,000–500,000
- Average rent (house): ~ $500–550/week
- Capital growth (houses): ~ ~5–7%
- Gross rental yield (houses): ~ ~3.5%–4.0%
- Infrastructure Development: Upgrades on Sunshine rail precinct, level crossing removals, new commercial precincts, improvements in bus/tram connectivity and community infrastructure.
6. Preston
Preston, in Melbourne’s inner-north, offers a middle ground between inner-city access and relative value compared with ultra-premium inner suburbs. It has been a strong performer in past years, appealing to renters who want convenience, public transport, cafes, and urban lifestyle. For first-time investors, it offers credibility and lower volatility compared to fringe suburbs.
- Median house price: ~ $1,100,000
- Median unit price: ~ $450,000
- Average rent (house): ~ $600/week
- Capital growth (houses): ~ ~4–6% (in line with solid inner/suburban growth)
- Gross rental yield (houses): ~ ~2.8%
- Infrastructure Development: Upgrades to tram and bus services, infill development, local council enhancements to streetscapes, urban renewal projects.
Secure the Right Investment Loan with Less Stress
Our expert Melbourne mortgage brokers at EverLend specialise in helping investors secure the right investment loan for their strategy, whether you’re chasing capital growth or rental yield. From pre-approval to settlement, we’ll guide you through every step with clarity and confidence. Call 03 7036 3356 or visit www.everlend.com.au to book your free consultation today.
7. Ringwood
Ringwood in Melbourne’s east continues to be recommended in many recent lists for its infrastructure, amenities, and relative value compared to inner suburbs. Good schooling, shopping, and transport links (Belgrave, Lilydale lines) make it attractive for long-term holds. It’s less “cheap” than outer suburbs, but more stable.
- Median house price: ~ $960,000
- Median unit price: ~ $530,000
- Average rent (house): ~ $580/week
- Capital growth (houses): ~ ~5–6%
- Gross rental yield (houses): ~ ~3.1%
- Infrastructure Development: Ongoing upgrades to Ringwood transport interchange, shopping precinct enhancements, improvements to road and cycling connectivity.
8. Blackburn
Blackburn is a leafy, change‑of‑pace suburb in Melbourne’s east. It is well-regarded for its quality schools, quiet streets, and proximity to bushland, which helps maintain demand. It’s not a high-yield pick, but it tends to offer stable capital growth and lower downside risk — which is compelling for first-time investors who prefer security.
- Median house price: ~ $1,400,000
- Median unit price: ~ $520,000
- Average rent (house): ~ $595/week
- Capital growth (houses): ~ ~6–7%
- Gross rental yield (houses): ~ ~2.2%
- Infrastructure Development: Local precinct upgrades, heritage preservation mixed with infill development, walking and cycling upgrades, improved local amenities.
9. Bentleigh
Bentleigh, in Melbourne’s south‑east, remains a compelling middle/middle‑inner suburb pick. Good school zones, strong amenities, and good connectivity (rail, buses) keep demand steady. For first-time investors willing to stretch, Bentleigh often offers a good balance of capital growth and rental stability.
- Median house price: ~ $1,500,000
- Median unit price: ~ $595,000
- Average rent (house): ~ $740/week
- Capital growth (houses): ~ ~4–6%
- Gross rental yield (houses): ~ ~2.6%
- Infrastructure Development: Local shopping precinct improvements, streetscape upgrades, transport service enhancements, cycle/walk path upgrades.
10. Essendon / Moonee Ponds (Inner‑West / North‑West Fringe)
Essendon and Moonee Ponds straddle the premium end of utility + lifestyle appeal. They offer heritage charm, good public transport (train/tram network), parks, and proximity to inner Melbourne. While yields are generally modest, the demand and capital growth potential often make them viable for investors who want a “safe” pick.
- Median house price (Essendon): ~ $1,699,000
- Median unit price (Essendon): ~ $455,000
- Average rent (house, Essendon): ~ $650/week
- Capital growth (houses): ~ ~4–5%
- Gross rental yield (houses): ~ ~1.98 – 2.6% (Essendon ~1.98% per Domain lists
- Infrastructure Development: Ongoing public transport upgrades, local precinct renewals, infill development, tram/tram interchange improvements.
Sources: Victorian Property Sales Report, Realestate.com.au, Domain, AllHomes. Note that the figures above are subject to change, so it’s best to get current market values from your real estate agent.
Chat with our Mortgage Brokers at EverLend
Thinking about investing in one of Melbourne’s top suburbs for 2025? Our expert mortgage brokers at EverLend are here to help you explore your loan options, compare lenders, and find a finance solution tailored to your investment goals.
- Access competitive rates
- Save time with expert guidance
- Get property investment insights from brokers who know Melbourne
Visit our website at www.everlend.com.au or give us a call now at 03 7036 3356. Let’s make your property investment journey simple and stress-free—reach out today!
Frequently Asked Questions (FAQs)
What are the best investment suburbs in Melbourne?
Cranbourne, Tarneit, and Glen Waverley rank high for growth potential, infrastructure, and rental demand. Your best pick depends on your budget and investment goals.
What suburbs will boom in 2025 in Melbourne?
Clyde North, Officer, and Tarneit are tipped for strong growth due to major developments and population surges. These suburbs combine affordability with future infrastructure plans.
What suburbs are most in demand in Melbourne?
Glen Waverley, Brighton, and Brunswick East remain highly sought after for lifestyle, schools, and proximity to the CBD. Demand from buyers and renters keeps prices and yields solid.
Which is the fastest growing suburb in Melbourne?
Clyde North is one of the fastest-growing suburbs, driven by new estates and booming family demand. Tarneit also shows rapid growth backed by strong population increases.
Is it worth investing in Melbourne property in 2025?
Yes, Melbourne’s population growth and infrastructure projects make it a strong long-term investment choice. Steady rental demand supports reliable returns.
What factors should I consider when choosing a suburb to invest in?
Look at population growth, infrastructure projects, school zones, and rental yields. These factors help drive both capital growth and steady rental income.
Are outer suburbs in Melbourne good for investment?
Absolutely, outer suburbs like Cranbourne and Officer offer affordability and growth potential. They’re popular with young families, boosting demand and future price growth.
Wrapping Up
Melbourne’s property market in 2025 offers a mix of solid growth suburbs, blue-chip stability, and exciting new opportunities for investors. Whether you’re after strong rental returns or long-term capital growth, choosing the right suburb makes all the difference.
If you’re planning to invest, our team at EverLend is here to help make the process smoother—plus, we offer a free consultation to get you started. Reach out today by visiting our website www.everlend.com.au or call us at 03 7036 3356.
Let’s chat about your goals and find the best loan options to suit your investment plans in 2025!