Best Suburbs for Units and Apartments in South East Melbourne, Compared Across 60+ Lenders
If you're buying a unit or apartment in South East Melbourne, the suburb you choose changes almost every number that matters: your deposit, your stamp duty, and whether a government scheme can actually help. House prices across the area run well above $1 million in most pockets, but the unit market tells a different story, and it's where most first home buyers and downsizers find their way in.
Unit medians across the approved suburbs range from $470,000 in Ripponlea to over $1.2 million in Brighton and Hampton, so suburb selection isn't a minor detail. Whether you're stretching to your first purchase, upgrading with equity behind you, or buying an apartment you'll never live in, the suburb you land on will shape what you can afford and what schemes are available to you.
Our team helps buyers across South East Melbourne navigate the apartment home loan side of things, comparing options across 60+ lenders to match the right structure to the suburb and the buyer.
Key takeaways
- Seven approved suburbs have unit medians under the $600,000 duty exemption threshold.
- Every house median in South East Melbourne sits above the $950,000 scheme cap.
- Unit medians run from $470,000 to over $1.2 million depending on suburb.
What are the best suburbs for units and apartments in South East Melbourne?
The best suburbs for unit buyers in South East Melbourne are those where medians still sit under the $950,000 scheme cap and, in seven cases, under the $600,000 stamp duty exemption threshold. CoreLogic data shows the area's unit market runs from $470,000 in Ripponlea to $1,247,500 in Brighton, with the most accessible pockets concentrated in the inner south and the mid-corridor suburbs of Cheltenham, Oakleigh and Carnegie.
Source: CoreLogic (via YIP, June 2026).
Best-value suburbs for unit buyers in South East Melbourne
These suburbs carry unit medians at or well under the $600,000 duty exemption threshold, making them the strongest entry points for first home buyers and buyers working with a smaller deposit.
Ripponlea
Ripponlea sits on the Sandringham rail line about 7 km from the CBD and offers some of the lowest unit entry prices in the area, on the Ripponlea and Elsternwick border near Rippon Lea Estate.
- Median unit price: $470,000
- 12-month unit growth: +4.44%
- Best suited for: first home buyers targeting the duty exemption threshold
Prahran
Prahran is on the Sandringham line with tram access via Chapel Street, Greville Street and the inner-south retail strips, about 5 km from the city.
- Median unit price: $500,000
- 12-month unit growth: -10.91%
- Best suited for: buyers comfortable with a market that has repriced and see value in the inner south
Windsor
Windsor is served by Windsor station on the Sandringham line and Chapel Street, and sits at the more affordable end of the inner-south apartment market.
- Median unit price: $530,000
- 12-month unit growth: -0.93%
- Best suited for: first home buyers and investors seeking inner-south access under $600,000
Oakleigh
Oakleigh is about 14 km from the CBD on the Cranbourne/Pakenham line, with Eaton Mall and the Atherton Road dining strip adding genuine lifestyle appeal beyond its price point.
- Median unit price: $580,000
- 12-month unit growth: 0.00%
- Best suited for: buyers who want rail access, local amenity and a stable median
We regularly see buyers assume that a lower unit median means easier lending. What actually changes the outcome is whether the complex sits inside the lender's density threshold for that postcode, and whether the internal floor area passes their minimum. Those two factors narrow the field before the rate conversation even starts.
Evelyn Clark · Director, Mortgage & Finance Broker · Chat to Evelyn →
Established and premium suburbs for unit buyers in South East Melbourne
These suburbs carry higher unit medians but still sit under the $950,000 scheme cap in most cases, and they offer well-established amenity, rail access and stronger long-term demand from both owner-occupiers and renters.
St Kilda
St Kilda is the largest apartment market in the area by sales volume, with 659 unit transactions recorded in the 12 months to June 2026, tram access via Fitzroy Street and The Esplanade, and the beach, Luna Park and Junction Oval on the doorstep.
- Median unit price: $512,000
- 12-month unit growth: +2.40%
- Best suited for: buyers who want high liquidity and a deep rental market under the duty exemption
Bentleigh
Bentleigh sits on the Frankston line about 13 km from the CBD, with Centre Road's shopping strip running through the middle of the suburb and two stations bookending the precinct.
- Median unit price: $935,000
- 12-month unit growth: +6.25%
- Best suited for: buyers with strong equity who want growth in the $900,000-plus unit bracket
Cheltenham
Cheltenham is on the Frankston line about 18 km out, with Westfield Southland adjacent to Southland station and the suburb's 8.23% house growth suggesting strong underlying demand.
- Median unit price: $700,000
- 12-month unit growth: -0.71%
- Best suited for: buyers who want the scheme cap and a mature, amenity-rich suburb further south
Carnegie
Carnegie is on the Cranbourne/Pakenham line about 12 km out, with tram 67 terminating on Glen Huntly Road and Koornang Road's shopping centre sitting directly beside the station.
- Median unit price: $630,000
- 12-month unit growth: -10.64%
- Best suited for: buyers watching for a repriced entry into a well-connected mid-corridor suburb
Source: CoreLogic (via YIP, June 2026).
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What should unit buyers consider when choosing a suburb here?
Suburb choice for unit buyers in South East Melbourne turns on three things: where the median sits relative to the $600,000 duty exemption and the $950,000 scheme cap, how many units are in any one postcode, and whether the individual apartment passes the lender's internal floor-area minimum.
On density, lenders set their own thresholds. A complex with more than 10 storeys or more than 50 units in the same building draws a smaller panel of lenders than a boutique three-level block, particularly in postcodes that have seen significant new supply. This is where the inner-south suburbs like St Kilda and Prahran differ from the mid-corridor suburbs: St Kilda's volume is high but spread across diverse stock, while a single large new development in a suburb like Cheltenham can narrow the market for buyers in that complex specifically.
On floor area, most mainstream lenders require at least 50 square metres of internal living space. Some accept 40 square metres in high-demand capital-city areas, and a narrow panel goes lower. A studio or one-bedroom apartment under that threshold reduces the number of lenders willing to lend against it, affects resale liquidity, and can push the required deposit higher. If you're looking at compact apartments, getting the lender assessment done before you sign a contract is the move.
What do these medians mean for your deposit and borrowing?
Every house median across South East Melbourne's approved suburbs sits above the $950,000 cap on the First Home Guarantee and the Family Home Guarantee. Units tell a different story. Twenty-two of the 28 approved suburbs have a unit median under the cap, which means first home buyers genuinely have access to scheme-eligible stock here, and the most affordable end of the market also clears the $600,000 duty exemption threshold.
At a 5% deposit under the First Home Guarantee, a buyer targeting a $500,000 unit needs $25,000 plus costs. At 10% they need $50,000 and LMI is likely waived by their lender. The $600,000 duty exemption removes Victorian stamp duty entirely for eligible first home buyers, which is a meaningful saving on a purchase in that range. The concession band from $600,001 to $750,000 applies a sliding scale, so suburbs like Carnegie, Cheltenham and Murrumbeena sit squarely in the concession territory.
Above $750,000, no first-home duty concession applies. Bentleigh units at $935,000, and Caulfield and Brighton units above the $950,000 cap, need a 20% deposit to avoid LMI at most lenders, or they fall outside the scheme cap entirely.
The deposit routes worth weighing:
- › First Home Guarantee (5% Deposit Scheme): 5% deposit · no LMI · $950,000 cap covers 22 of 28 suburbs · first home buyers only
- › Family Home Guarantee (Single Parent Stream): 2% deposit · no LMI · $950,000 cap · does not require first home buyer status
- › Standard loan with LMI: 5% to 10% deposit · LMI premium added to the loan · no price cap · wider suburb access
Source: Housing Australia and State Revenue Office Victoria.
Where a buyer is sitting just above the $600,000 threshold, we'd usually look hard at whether renegotiating the price or finding comparable stock in a suburb a rung below is actually possible. The duty saving at that price point is worth tens of thousands, and it's often achievable with a small adjustment rather than a different suburb altogether.
Evelyn Clark · Director, Mortgage & Finance Broker · Chat to Evelyn →
How does a mortgage broker help unit buyers in these suburbs?
The lender choice matters more on apartments than on houses, because lender policies on density, floor area, postcode concentration and off-the-plan risk vary significantly. Three decisions move the outcome for unit buyers specifically, and they're not published side by side anywhere.
- › Density threshold: some lenders cap LVR at 70% to 80% in high-density postcodes or large complexes, while others apply standard residential terms to the same property
- › Floor area minimum: the threshold differs between lenders and some will lend on 40 square metres where others require 50, which determines whether the buyer has one lender or eight
- › Off-the-plan risk: for contracts signed before 21 April 2027, the temporary strata concession lets buyers deduct construction costs from the dutiable value, and not every lender handles the settlement-valuation risk the same way
Comparing across the panel before you identify a property means knowing which lenders will work for the kind of apartment you're targeting, rather than finding out at valuation.
Frequently Asked Questions
Which suburbs in South East Melbourne have unit medians under $600,000?
Seven suburbs sit under the $600,000 stamp duty exemption threshold: Ripponlea ($470,000), St Kilda ($512,000), Prahran ($500,000), Windsor ($530,000), South Yarra ($525,000), Balaclava ($591,500) and Oakleigh ($580,000). These are the strongest entry points for first home buyers targeting full duty exemption.
Can unit buyers in South East Melbourne use the First Home Guarantee?
Yes, unit buyers can use the First Home Guarantee in 22 of the 28 approved suburbs, where unit medians sit under the $950,000 cap. Every house median across the area exceeds that cap, so units are the primary scheme-eligible property type here.
Do lenders treat high-density apartment buildings differently in South East Melbourne?
Yes, some lenders cap LVR at 70% to 80% for apartments in large complexes or high-density postcodes, while others apply standard residential terms to the same property. Which policy applies depends on which lenders your broker has access to and on the specific complex.
Is buying a unit or a house better for first home buyers in South East Melbourne?
Units are the more practical choice for first home buyers here, because every house median in the area sits above the $950,000 scheme cap. A unit is the only property type where the First Home Guarantee, stamp duty exemption and the $10,000 First Home Owner Grant can realistically align.
Does the Victorian First Home Owner Grant apply to apartments in South East Melbourne?
Yes, the $10,000 grant applies to new apartments and units under $750,000, including off-the-plan purchases. It does not apply to established apartments, so the grant is primarily an off-the-plan story in South East Melbourne.
Is a mortgage broker or a bank better for buying an apartment in South East Melbourne?
A mortgage broker, every time. Apartment lending policy varies significantly between lenders on density, floor area and postcode risk, and your bank is just one of those lenders. A broker compares across the panel to find who will actually lend on the specific property you want.
Your Next Steps
Buying a unit in South East Melbourne puts scheme eligibility, stamp duty concessions and lender policy all in the same conversation at once. The suburb you choose determines which of those apply, and the apartment you choose determines which lenders will actually support it at your LVR. Getting both right before you start inspecting is the difference between a clean approval and a valuation surprise at the finish line.
If unit buying in South East Melbourne is on your horizon, the next step is simple. Get in touch with the EverLend team or call 03 7036 3356. We'll work through where you stand across our 60+ lender panel.
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External Resources
EverLend · South East Melbourne · Ever Lend Pty Ltd (ACN 625 080 515), authorised under Australian Credit Licence 517192 · General information only - this article does not constitute financial advice. Please consider your own circumstances and seek professional advice before making any financial decisions.
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