03 Sep 2025 10 Best Suburbs to Invest in Melbourne Under $600k for First-Time Investors
Melbourne’s property market has become increasingly competitive, with rising property prices and interest rate hikes making it more challenging for first-time investors to enter the market.
While the city continues to grow and demand for housing remains strong, affordability is a significant barrier, especially for those entering the market without existing equity. Many first-time investors are priced out of popular areas and struggle to find properties that offer both value and future potential.
That’s why affordable suburbs make sense. In a market shaped by housing undersupply and significant infrastructure upgrades, smart moves often happen quietly.
In this guide, we’ll explain why low-priced, affordable entry-level suburbs are a smart choice for first-time investors. You’ll also get our list of the 10 best suburbs to invest in Melbourne under $600k, locations with strong fundamentals, real upside, and a solid starting point for your property journey.
Why Look for Suburbs Under $600k in Melbourne?
For first-time investors, price matters more than ever. Suburbs under $600k offer a rare mix of affordability and potential in a tightening market.
Here’s why it’s worth focusing on them:
- Affordability for first-time investors: Entry-level pricing lowers the barrier to entry, making it possible to invest without straining one’s finances too much.
- Lower deposit & easier loan approval: A lower purchase price means a smaller deposit and a higher chance of loan approval, especially under stricter lending conditions.
- Better rental yield-to-price ratio: Cheaper properties often deliver stronger rental yields compared to high-priced inner suburbs.
- More room for capital growth: As infrastructure spreads and demand pushes outward, these areas have more upside for long-term price growth.
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10 Best Suburbs to Invest in Melbourne Under $600k
Whether you’re just starting out or adding to your portfolio, these 10 suburbs offer solid growth, strong rental returns, and prices under $600K. Melbourne’s outer suburbs are booming, with affordable entry points and major infrastructure upgrades making them ideal for long-term gains and steady income.
1. Melton
Melton is rapidly transforming from a quiet regional hub into one of Melbourne’s fastest-growing suburbs. Located about 35km west of the CBD, it’s a hotspot for families, young professionals, and first-home buyers. It boasts a strong community feel, shopping centres like Woodgrove Shopping Centre, and great access to public transport. Plus, the local council has big plans for future growth, including education, transport, and recreation upgrades.
- Median House Price: $490,000
- Median Unit Price: $370,000
- Rental Yields: 4.4% (houses), 5.1% (units)
- Growth Forecast: High, with consistent 5-year growth trends
- Infrastructure Plans: Melton Hospital, road upgrades, and rail duplication
2. Melton South
Melton South is another rising star in Melbourne’s west. It’s particularly attractive due to its proximity to the Melton train station and affordability compared to inner suburbs. The suburb features schools, local shops, and newer housing estates that appeal to families and investors alike. Easy access to the Western Freeway makes commuting a breeze, adding to its investor appeal.
- Median House Price: $480,000
- Median Unit Price: $355,000
- Rental Yields: 4.6% (houses), 5.2% (units)
- Growth Forecast: Strong upward trend with new housing developments
- Infrastructure Plans: Station upgrades, education hubs, and retail precinct expansions
3. Kurunjang
Nestled just north of central Melton, Kurunjang offers the charm of a residential suburb with space to grow. It’s known for its family-friendly parks, sporting facilities, and low-density housing. Investors are drawn to Kurunjang for its affordability, quiet lifestyle, and future urban development potential. This is a solid choice for those wanting to buy and hold.
- Median House Price: $495,000
- Median Unit Price: $360,000
- Rental Yields: 4.5% (houses), 5.0% (units)
- Growth Forecast: Moderate to high, driven by migration and development
- Infrastructure Plans: Local parkland upgrades and new schooling facilities
4. Melton West
Melton West is a well-established suburb with an increasing number of new developments and schools. It’s known for wide streets, modern homes, and proximity to major shopping areas. The strong sense of community and accessible amenities make it ideal for young families and tenants, which equals reliable rental income for investors.
- Median House Price: $510,000
- Median Unit Price: $375,000
- Rental Yields: 4.3% (houses), 4.8% (units)
- Growth Forecast: Stable growth expected over the next 5 years
- Infrastructure Plans: School upgrades and new retail facilities
5. Dallas
Located just 18km north of the CBD, Dallas is an older suburb that’s now enjoying a revival. It’s close to Broadmeadows Shopping Centre and offers excellent access to public transport, including trains and buses. The area is multicultural, vibrant, and appealing for renters looking for value near the city. The proximity to employment hubs adds further investment value.
- Median House Price: $590,000
- Median Unit Price: $410,000
- Rental Yields: 3.9% (houses), 4.4% (units)
- Growth Forecast: Steady, with long-term redevelopment potential
- Infrastructure Plans: Local roadworks and community centre upgrades
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6. Coolaroo
Coolaroo flies under the radar, but savvy investors are paying attention. Just 19km from the CBD, it offers some of the most affordable properties this close to the city. It’s well-serviced by public transport and offers schools, parks, and shopping options. The suburb has a strong appeal for renters looking for cheaper alternatives close to work and study hubs.
- Median House Price: $570,000
- Median Unit Price: $395,000
- Rental Yields: 4.0% (houses), 4.5% (units)
- Growth Forecast: Positive, driven by increasing demand and affordability
- Infrastructure Plans: New sporting facilities and improved public transport
7. Brookfield
Brookfield is a modern suburb located just outside Melton, featuring numerous new housing estates and a family-friendly atmosphere. It’s clean, green, and offers excellent value for investors seeking to invest in a growing suburb. It also benefits from easy access to the Western Freeway and public transport. With new developments still rolling out, capital gains are expected.
- Median House Price: $520,000
- Median Unit Price: $370,000
- Rental Yields: 4.4% (houses), 5.0% (units)
- Growth Forecast: High, particularly in newer housing estates
- Infrastructure Plans: Expansion of retail hubs and road networks
8. Weir Views
A newer suburb in the Melton area, Weir Views offers modern infrastructure and brand-new homes at budget-friendly prices. With plenty of green spaces, access to Cobblebank Station, and future development plans, it’s a smart pick for early-bird investors. Renters love the new homes, lifestyle amenities, and quiet vibe, making it a solid investment.
- Median House Price: $505,000
- Median Unit Price: $365,000
- Rental Yields: 4.5% (houses), 5.1% (units)
- Growth Forecast: High, with significant development on the horizon
- Infrastructure Plans: Cobblebank CBD plans, school and transport expansion
9. Harkness
Harkness has quickly gained traction thanks to its blend of affordability and lifestyle perks. Located just west of Melton, it’s packed with parks, walking trails, and family-focused amenities. It attracts tenants who want peaceful surroundings without being too far from shopping and work opportunities. A newer suburb with long-term growth potential.
- Median House Price: $500,000
- Median Unit Price: $360,000
- Rental Yields: 4.6% (houses), 5.2% (units)
- Growth Forecast: Strong, with consistent housing demand
- Infrastructure Plans: Expansion of schools, road links, and sports facilities
10. Wyndham Vale
Wyndham Vale is a western suburb success story. With a train station, thriving retail options, and schools galore, it ticks all the boxes for families and commuters alike. It’s also near Werribee, a key employment and education hub. Investors love it for the affordable prices, high rental demand, and future-proof infrastructure.
- Median House Price: $580,000
- Median Unit Price: $410,000
- Rental Yields: 4.2% (houses), 4.9% (units)
- Growth Forecast: High, with ongoing suburban expansion
- Infrastructure Plans: New town centre development, upgraded train services
Sources: Realestate.com.au, Cotality, Domain, Victoria Planning Authority, SQM Research. Please note that the values above may change over time; therefore, it’s always best to consult with your real estate agent for the latest market prices.
If you’re to grow your property investment portfolio, work with a trusted team of Melbourne mortgage brokers who know the right financing suited to your goals! For tailored and strategic loan advice, call EverLend today at 03 7036 3356.
FAQs
What is the best suburb to invest in Melbourne under $800K?
If you’re diving into property investment under $800K, Wyndham Vale, Dallas, and Melton offer some of the best opportunities in the Melbourne suburbs. These outer suburbs feature strong population growth, relatively low vacancy rates, and promising infrastructure upgrades like the Melbourne Airport Rail. Their proximity to key employment hubs and affordability make them ideal for securing a quality investment property.
What are the best suburbs for first-home buyers in Melbourne?
First home buyers should look towards Melton South, Brookfield, and Harkness, affordable pockets in the west of the Melbourne property market. These areas offer great entry points into the real estate game, thanks to lower median dwelling values, family-friendly environments, and expanding infrastructure. Many of these outer suburbs also show signs of future population growth, making them long-term winners.
What suburbs will boom in 2025 in Melbourne?
In 2025, suburbs tipped to boom include Weir Views, Cobblebank, and Coolaroo. Thanks to large-scale projects like the Melbourne Airport Rail, improved public transport, and education hubs, Melbourne’s suburbs are set to experience increased demand. With low vacancy rates, strong infrastructure pipelines, and rising buyer interest, they are poised for significant growth in the housing market.
What suburbs in Melbourne are best for families?
Families love suburbs like Melton West, Harkness, and Kurunjang for their open spaces, schools, and safe community feel. These Melbourne suburbs offer bigger blocks, affordable housing, and access to parks and schools. Plus, with improved infrastructure details and community planning, they’re becoming more appealing for both lifestyle and property investment purposes.
For the complete list, check out our blog on the top Melbourne suburbs for families.
What loans are available for first-time property investors in Melbourne?
First-time property investors in Melbourne can access various loan options such as interest-only loans, low-deposit investor loans, and fixed-rate investment loans. Some banks even offer special deals for those investing in regional areas or growth outer suburbs. It’s important to factor in current interest rates, your borrowing power, and the vacancy rate in your target area before committing to any investment property.
Final Thoughts
Investing in property doesn’t have to start with a million-dollar postcode. These Melbourne suburbs that are under $600k show that value still exists for first-time investors – if you know where to look. These areas offer a smart balance of affordability, rental yields, and long-term capital growth potential, especially as infrastructure expands and demand pushes outward.
If you’re ready to take the next step, speaking with a trusted Melbourne mortgage broker can help you understand your borrowing power and find the right finance solution. Chat with our expert team today at EverLend by calling 03 7036 3356. Get free, personalised consultation and get started with a team that knows Melbourne’s property market inside out.