17 Jul 2025 Most Affordable Suburbs To Buy in South East Melbourne, The 2026 Guide
In 2026, South East Melbourne remains one of Victoria’s most competitive property markets – but if you’re a first home buyer, upsizer, or investor who’s been watching prices climb and wondering where you can still get in, there are genuine entry points for buyers who know where to look. The most affordable suburbs in this premium catchment still offer median house prices from $1.29M, with unit options in several inner suburbs sitting comfortably below the $600,000 stamp duty exemption threshold.
Smart buyers are focusing on suburbs like Cheltenham – Moorabbin or Carnegie for houses, while inner suburb units in locations like St Kilda and Windsor offer sub-$600,000 entry points with full stamp duty exemption benefits. The difference between the most and least expensive house markets in South East Melbourne is over $4.5M, which means lender choice and loan structure become critical to maximising what you can access.
EverLend helps buyers across South East Melbourne identify the most suitable suburbs for their budget and goals, comparing options across 60+ lenders, completely free of charge.
Here’s what you need to know about the most affordable entry points in South East Melbourne in 2026.
Why does suburb choice matter for affordability in South East Melbourne?
South East Melbourne spans premium inner suburbs through to established outer areas, with median house prices ranging from $1.29M in Cheltenham to $5.8M in Toorak as of April 2026. For buyers working with a specific deposit and borrowing capacity, suburb choice determines not just what you can afford, but what government schemes you can access and how your stamp duty calculation works out.
The unit market tells a different affordability story. Several inner South East Melbourne suburbs offer unit medians below $600,000, which means eligible first home buyers pay zero stamp duty, can access the $10,000 First Home Owner Grant on new builds, and qualify for the First Home Guarantee with just a 5% deposit. That combination of benefits can save $30,000+ compared to buying in a suburb where none of those thresholds apply.
What are the most affordable suburbs to buy in South East Melbourne?
The most affordable house markets in South East Melbourne are Cheltenham ($1,287,000 median), Moorabbin ($1,292,500), and Oakleigh ($1,366,250) as of April 2026. For unit buyers, St Kilda ($490,000), Port Melbourne (~$500,000), and St Kilda West ($532,500) offer the strongest affordability with full first home buyer benefits available. Your best choice depends on whether you’re prioritising entry price, growth potential, or government scheme access – which is exactly what we work through with you in a free consultation.
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Cheltenham
Cheltenham offers the most affordable house entry point in South East Melbourne, with strong capital growth of +5.75% over the past 12 months and established family-friendly infrastructure.
- Median house price: $1,287,000
- 12-month house growth: +5.75%
- Best suited for: First home buyers with larger deposits, young families, investors seeking growth
Moorabbin
Moorabbin sits just above Cheltenham at $1,292,500, with solid infrastructure, good transport links to the city, and steady capital growth making it suitable for both owner-occupiers and investors.
- Median house price: $1,292,500
- 12-month house growth: +1.21%
- Best suited for: First home buyers, families upgrading, established investors
Oakleigh
Oakleigh provides affordable access to South East Melbourne at $1,366,250, with strong growth of +4.21% and good connectivity to employment hubs across Melbourne’s south east.
- Median house price: $1,366,250
- 12-month house growth: +4.21%
- Best suited for: First home buyers, young professionals, growth-focused investors
Highett
Highett offers family-friendly living at $1,450,250, with bayside proximity and steady growth making it an attractive option for buyers seeking established infrastructure.
- Median house price: $1,450,250
- 12-month house growth: +0.71%
- Best suited for: Families, professionals working in the south east, stable investors
Hampton East
Hampton East provides affordable bayside access at $1,470,000, with good growth of +3.16% and proximity to both beach and established shopping precincts.
- Median house price: $1,470,000
- 12-month house growth: +3.16%
- Best suited for: Young families, bayside lifestyle seekers, first home buyers with equity
Bentleigh East
Bentleigh East at $1,515,000 offers excellent schools, established amenities, and steady growth making it popular with families and long-term investors.
- Median house price: $1,515,000
- 12-month house growth: +2.19%
- Best suited for: Families with school-age children, upgraders, buy-and-hold investors
St Kilda (Units)
St Kilda units at $490,000 offer the most affordable entry to South East Melbourne’s inner suburbs, with full first home buyer benefits available and vibrant lifestyle amenities.
- Median unit price: $490,000
- 12-month unit growth: -2.39%
- Best suited for: First home buyers, young professionals, investors seeking inner-suburb exposure
Port Melbourne (Units)
Port Melbourne units at approximately $500,000 provide waterfront proximity with first home buyer stamp duty benefits and strong rental demand.
- Median unit price: ~$500,000
- 12-month unit growth: ~-4.33%
- Best suited for: First home buyers, professionals working in the city, yield-focused investors
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• EverLend Ready to find out which suburb and loan structure suits your deposit? We compare loans from 60+ lenders across South East Melbourne. Free service, no cost to you. 200+ reviews
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Frequently Asked Questions
What’s the cheapest suburb to buy a house in South East Melbourne?
Cheltenham offers the most affordable house prices in South East Melbourne at $1,287,000 as of April 2026. Moorabbin ($1,292,500) and Oakleigh ($1,366,250) are also among the most accessible entry points for house buyers in this catchment.
Can first home buyers afford to buy in South East Melbourne?
Yes, particularly in the unit market where several suburbs sit below the $600,000 stamp duty exemption threshold. St Kilda units at $490,000 and Port Melbourne units at approximately $500,000 allow first home buyers to access full stamp duty exemption, the First Home Guarantee with 5% deposit, and the $10,000 FHOG on new builds.
What deposit do I need for the most affordable South East Melbourne suburbs?
For houses in suburbs like Cheltenham ($1,287,000), you’d typically need $128,700 for a 10% deposit plus costs. For units under $600,000, first home buyers can use the First Home Guarantee with just 5% deposit and no LMI, plus zero stamp duty – making entry significantly more accessible.
Are the cheapest suburbs in South East Melbourne good investments?
Many of the most affordable suburbs have shown solid growth – Cheltenham gained +5.75%, Oakleigh +4.21%, and Hampton East +3.16% over the past 12 months. Growth combined with relative affordability can create strong investment fundamentals, though your specific strategy determines the best choice.
How much can I save by buying in cheaper South East Melbourne suburbs?
The difference between Cheltenham ($1,287,000) and premium suburbs like Toorak ($5,800,500) is over $4.5M – which translates to different deposit requirements, borrowing needs, and ongoing costs. Even within affordable options, the gap between Cheltenham and Bentleigh East ($1,515,000) is $228,000 in purchase price.
Should I use a mortgage broker or go to my bank for South East Melbourne properties?
A mortgage broker, every time. Different lenders assess income, deposits, and borrowing capacity differently – and when you’re working with specific affordability constraints, finding the lender that gives you the strongest result can mean the difference between qualifying and missing out. We compare 60+ lenders to find your best options.
Do affordable South East Melbourne suburbs qualify for government schemes?
Yes – the First Home Guarantee applies up to $950,000 across all South East Melbourne suburbs, and the Family Home Guarantee has the same cap for eligible single parents. The stamp duty exemption (up to $600,000) and FHOG ($10,000 new builds up to $750,000) apply primarily to the unit market in inner suburbs.
Your Next Steps
Buying in South East Melbourne’s most affordable suburbs is about more than finding the lowest entry price. The right suburb for your situation depends on your deposit, borrowing capacity, scheme eligibility, and whether you’re prioritising immediate affordability or long-term growth – which is exactly what a broker comparison is designed to work through with you.
Ready to find out which suburb and loan structure gives you the strongest result? Contact Evelyn Clark for a free consultation or call 03 7036 3356. We’ll assess your budget and goals across our 60+ lender panel and identify the most suitable options in South East Melbourne for you.