13 Dec 2024 12 Fastest Growing Suburbs in Melbourne with Strong Investment Potential (2025)
Melbourne’s fastest-growing suburbs offer more than just rising population numbers—they present prime opportunities for strategic property investors. While population growth and new infrastructure can boost property values and rental returns, these factors alone don’t guarantee strong returns.
Smart investors dig deeper, analysing housing supply, vacancy rates, and local job markets to ensure long-term profitability. After all, a booming suburb might look promising, but excessive development or weak employment prospects could limit its growth potential.
For investors looking to capitalise on high-growth suburbs, expert mortgage brokers like EverLend play a crucial role. Beyond securing competitive loans, they provide tailored financing strategies to maximise borrowing capacity and align lending solutions with investment goals—whether you’re targeting rental income or long-term capital gains.
Ready to explore 12 Melbourne suburbs where growth meets investment potential? Let’s dive in.
12 Fastest Growing Suburbs in Melbourne for Investors
(Updated as of October 2025)
Melbourne’s outer suburbs are experiencing rapid growth, driven by population increases, new infrastructure projects, and strong housing demand. For property investors, these areas present opportunities for capital growth and solid rental returns, particularly as Melbourne’s urban sprawl continues.
Below are 12 of the fastest-growing suburbs in Melbourne, each offering unique investment potential.
1. Fraser Rise (North-West Melbourne)
Fraser Rise is one of the fastest-developing pockets west of Melbourne. It’s benefiting from significant housing estate expansion, proximity to Caroline Springs, and improved access via the Western Freeway. With new schools, parks, and retail hubs being built, it’s attracting families and first-home buyers. This suburb represents early-stage value in a high-growth corridor.
- Median house price: ~$700,000
- Median unit price: ~$520,000
- Rental yield: ~3.8%
- Growth Drivers: 26% annual population growth (2024 corridor data), rapid land development, school and retail rollout
- Investment Potential: Strong capital growth over 5–10 years; affordable entry point with rising demand
2. Clyde North (South-East Melbourne)
Clyde North continues its transformation from a greenfield suburb to a highly liveable residential hub. New schools, Clyde Shopping Centre, and planned rail projects are increasing its appeal. It attracts families looking for lifestyle balance and affordability on the city’s southeastern fringe. It’s a prime example of infrastructure-led growth.
- Median house price: ~$725,000
- Median unit price: ~$580,000
- Rental yield: ~3.5%
- Growth Drivers: 19%+ population growth, master-planned estates, new schools, Clyde rail upgrade proposed
- Investment Potential: High growth corridor with long-term demand and infrastructure support
3. Rockbank / Mt Cottrell (West Melbourne)
Positioned along the growth belt between Caroline Springs and Melton, Rockbank and Mt Cottrell are booming due to master-planned estates like Woodlea. Major road upgrades and the Rockbank Train Station are boosting connectivity. This area appeals to buyers priced out of inner west suburbs.
- Median house price: ~$630,000
- Median unit price: ~$500,000
- Rental yield: ~4.0%
- Growth Drivers: 15%+ corridor population growth, Woodlea Town Centre, train line upgrades
- Investment Potential: High upside if infrastructure delivery stays on track
4. Tarneit North (West Melbourne)
Tarneit North is a rapidly expanding extension of Tarneit proper, now with its own identity. It’s surrounded by new housing estates and has direct access to Tarneit Train Station, making city commutes viable. Schools, town centres, and better road links make it attractive for young families.
- Median house price: ~$700,000
- Median unit price: ~$520,000
- Rental yield: ~3.6%
- Growth Drivers: 20%+ population increase, new schools, town centre upgrades
- Investment Potential: High-demand suburb with a reliable rental market
5. Mickleham (North Melbourne)
Mickleham has seen explosive growth over the past decade, turning from a semi-rural fringe to a busy residential community. Its location near Melbourne Airport and employment hubs adds convenience, while new estates continue to roll out. Amenities like Merrifield City are attracting new families and renters.
- Median house price: ~$675,000
- Median unit price: ~$540,000
- Rental yield: ~3.7%
- Growth Drivers: 4.7% annual population growth, Merrifield Business Park, local school expansion
- Investment Potential: High long-term returns; growing employment access
6. Wollert (North Melbourne)
Wollert is a northern suburb gaining traction as an affordable alternative to Epping. It’s benefiting from massive estate developments, new schools, and planned transport infrastructure. Close to employment hubs and retail in the north, it’s ideal for both investors and homebuyers.
- Median house price: ~$680,000
- Median unit price: ~$540,000
- Rental yield: ~3.9%
- Growth Drivers: Aurora Estate expansion, road and school upgrades
- Investment Potential: Excellent for long-term capital growth; low vacancy rates
Tailored Investment Loan Strategies for Melbourne Growth Suburbs
Buying in a fast-growing suburb? EverLend’s expert Melbourne mortgage brokers help you structure your investment loan for maximum capital growth and rental return. Whether it’s interest-only, equity release, or tax-optimised lending, we’ll tailor the strategy to your goals. Call 03 7036 3356 or visit everlend.com.au for a free finance consultation.
7. Cobblebank / Strathtulloh (West Melbourne)
Cobblebank and neighbouring Strathtulloh are growing rapidly due to major infrastructure planning. Cobblebank Station, the upcoming Melton Hospital, and new town centres are attracting investment. It offers affordable housing within commuting distance of the CBD.
- Median house price: ~$620,000
- Median unit price: ~$500,000
- Rental yield: ~4.1%
- Growth Drivers: New hospital, train station, and commercial zones
- Investment Potential: Solid medium-term returns; strong tenant demand
8. Cranbourne South (South-East Melbourne)
Cranbourne South offers a semi-rural lifestyle with city access, attracting buyers who want space without sacrificing connection. With proximity to Cranbourne Park Shopping Centre and upcoming transport links, it’s rapidly gentrifying. Development of acreage blocks into estates is accelerating.
- Median house price: ~$790,000
- Median unit price: ~$620,000
- Rental yield: ~3.5%
- Growth Drivers: Land conversion, lifestyle appeal, expanding transport corridors
- Investment Potential: Good mid-term gains with low-density upside
9. Officer (South-East Melbourne)
Officer is growing steadily thanks to its established transport links, including its own train station and Princes Freeway access. Housing estates like Arcadia and Kaduna Park are attracting first-home buyers. New schools and shops are adding to its family appeal.
- Median house price: ~$720,000
- Median unit price: ~$580,000
- Rental yield: ~3.3%
- Growth Drivers: Train station, freeway access, planned retail and education hubs
- Investment Potential: Lower risk growth suburb; consistent returns
10. Cranbourne East (South-East Melbourne)
Cranbourne East continues to be one of the south-east’s most in-demand areas, with strong community infrastructure already in place. It offers excellent access to sports facilities, schools, and shopping precincts. As estates fill up, values continue to rise.
- Median house price: ~$760,000
- Median unit price: ~$600,000
- Rental yield: ~3.4%
- Growth Drivers: Expanding estate developments, proximity to schools and recreation
- Investment Potential: Low vacancy suburb with growing family demand
11. Point Cook (West Melbourne)
Point Cook remains a standout for long-term growth due to its location, lifestyle offering, and established infrastructure. Its waterfront appeal, strong school zones, and access to the Princes Freeway attract both families and professionals. With high demand and limited supply, it continues to perform.
- Median house price: ~$820,000
- Median unit price: ~$620,000
- Rental yield: ~3.0%
- Growth Drivers: Quality schools, freeway access, lifestyle amenities
- Investment Potential: Proven capital growth; strong tenant pool
12. Werribee / Werribee West (South-West Melbourne)
Werribee and Werribee West are maturing into strong investment precincts. With significant job creation in Werribee East and major rail/freeway upgrades, the suburb is on the rise. The Werribee River, Werribee Plaza, and proximity to Wyndham Harbour add lifestyle appeal.
- Median house price: ~$620,000
- Median unit price: ~$500,000
- Rental yield: ~3.6%
- Growth Drivers: Infrastructure upgrades, employment hubs, lifestyle precincts
- Investment Potential: Balanced yield and growth play with an affordability edge
Sources: Victorian Property Sales Report, Realestate.com.au, Domain, Cotality. Note that the figures above are subject to change, so it’s best to get current market values from your real estate agent.
Ready to Invest? Let EverLend Help You Maximise Your Returns!
Finding the right investment property is just the first step—securing the best financing strategy is what sets successful investors apart. EverLend’s expert mortgage brokers can help you:
✔ Secure competitive loans tailored to your investment goals.
✔ Maximise borrowing capacity for smarter portfolio growth.
✔ Optimise loan structures to improve cash flow and returns.
Start your property investment journey with confidence! Contact EverLend today for a free consultation.
FAQs
Why are Melbourne’s fast-growing suburbs good for property investment?
Fast-growing suburbs offer strong capital growth potential and high rental demand due to population increases and infrastructure projects. As demand rises, property values and rental returns typically follow suit, making them attractive to investors.
How can I finance an investment property in Melbourne?
You can finance an investment property through a standard home loan, an investment loan, or equity from an existing property. A mortgage broker like EverLend can help secure competitive rates and loan structures suited to your investment strategy.
What deposit do I need for an investment property?
Most lenders require a 10-20% deposit, but some loan options allow for lower deposits with lender’s mortgage insurance (LMI). Using equity from another property can also reduce upfront cash requirements.
How do I maximise rental yield in a high-growth suburb?
Choose suburbs with low vacancy rates, strong tenant demand, and ongoing infrastructure upgrades. Investing in modern, well-located properties can attract higher rent and quality tenants.
Why should I use a mortgage broker like EverLend?
EverLend can compare loan options from multiple lenders, negotiate better rates, and structure loans to optimise cash flow. Their expert guidance helps maximise borrowing power and secure financing tailored to your investment goals.
Final Thoughts – Invest Smarter in 2025
Melbourne’s fastest-growing suburbs offer strong potential for capital growth and rental income, making 2025 a great time to expand your property portfolio. With rising demand, new infrastructure projects, and a competitive market, choosing the right investment strategy is key to maximising returns.
EverLend’s expert mortgage brokers can help you find the best loan options, optimise your borrowing power, and structure financing to suit your goals. Whether you’re a first-time investor or growing your portfolio, a well-planned approach can make all the difference. Ready to take the next step toward homeownership? Call us at 03 7036 3356 for a free consultation or visit EverLend today!