17 Oct 2025 Top 7 Highest Growth Suburbs in South East Melbourne for Property Buyers

The property market in South East Melbourne is showing strong signs of momentum in 2025. While some areas of Victoria are seeing a slowdown, South East Melbourne remains a standout with rising rental demand, new infrastructure projects, and healthy population growth. Investors are paying close attention to this region due to its mix of affordability, transport connections, and lifestyle offerings.

If you’re planning to buy into one of these growth corridors, the experienced Melbourne mortgage brokers at EverLend can support you with tailored advice. From understanding your borrowing power to accessing the right finance products, working with a broker can save you time and money while giving you an edge in a competitive market.

Let’s explore the top seven highest growth suburbs in South East Melbourne for smart property buyers in 2025.

South East Melbourne’s Highest Growth Suburbs

1. Cranbourne East

Cranbourne East has fast become a favourite among families and investors. With proximity to schools, new estates, and ongoing community upgrades, it’s part of a larger South East growth corridor that continues to attract new residents.

• Median House Price: $730,000

• Median House Price Growth: 8.1%

• Median Unit Price: $540,000

• Median Unit Price Growth: 6.4%

• Rental Yields: 4.1%

• Annual Capital Growth: 7.3%

• Growth Drivers: Family-friendly suburbs, school catchments, proximity to Clyde

• Infrastructure Development: Clyde rail extension, shopping centre upgrades

• Investment Potential: Strong potential due to low entry point and population growth

2. Berwick

Berwick blends prestige with accessibility. A suburb that has transitioned from a semi-rural town to a desirable outer metro area, Berwick offers boutique apartments, heritage homes, and elite schools, making it attractive to families and professionals alike.

• Median House Price: $950,000

• Median House Price Growth: 7.6%

• Median Unit Price: $655,000

• Median Unit Price Growth: 5.8%

• Rental Yields: 3.8%

• Annual Capital Growth: 6.7%

• Growth Drivers: Education, health precincts, lifestyle appeal

• Infrastructure Development: Monash Freeway upgrades, Westfield Fountain Gate expansion

• Investment Potential: Excellent for mid-to-long-term growth and steady rental income

3. Officer

Officer is one of Melbourne’s fastest-growing areas, benefiting from billions in state-backed infrastructure spending. New estates, parks, and schools are popping up quickly, making it a magnet for first-home buyers and investors. Its blend of affordability, lifestyle, and access to key transport routes has made it a standout in the current property market.

• Median House Price: $720,000

• Median House Price Growth: 9.2%

• Median Unit Price: $570,000

• Median Unit Price Growth: 6.3%

• Rental Yields: 4.3%

• Annual Capital Growth: 7.9%

• Growth Drivers: Urban development, government support, migration patterns

• Infrastructure Development: Cardinia Road Station upgrade, new schools

• Investment Potential: High due to ongoing population expansion and housing undersupply

4. Pakenham

Pakenham continues to be a reliable performer in the South East. It offers affordable housing with access to the CBD via train, and it’s part of a significant housing and infrastructure corridor. The suburb is also seeing steady demand from both families and investors due to its balance of lifestyle appeal and investment fundamentals.

• Median House Price: $690,000

• Median House Price Growth: 7.0%

• Median Unit Price: $495,000

• Median Unit Price Growth: 4.5%

• Rental Yields: 4.5%

• Annual Capital Growth: 6.2%

• Growth Drivers: Connectivity, affordability, transport links

• Infrastructure Development: Pakenham East development, Suburban Rail Loop stage

• Investment Potential: Ideal for cash flow investors with strong rental market

Maximise your investment in South East Melbourne’s booming growth corridors. Speak with our expert Melbourne mortgage brokers for tailored loan advice today. Call 03 7036 3356 or visit www.everlend.com.au.

5. Clyde North

One of the most talked-about growth corridors in Victoria, Clyde North is a suburb that ticks many boxes: modern estates, recreational facilities, and school zones. It continues to draw a high level of investor activity. The suburb’s rapid development and lifestyle offerings make it especially appealing to families and professionals looking for long-term value.

• Median House Price: $750,000

• Median House Price Growth: 10.4%

• Median Unit Price: $590,000

• Median Unit Price Growth: 6.8%

• Rental Yields: 4.2%

• Annual Capital Growth: 8.3%

• Growth Drivers: Young families, infrastructure upgrades, school access

• Infrastructure Development: Clyde Road duplication, shopping precincts

• Investment Potential: Very high due to low vacancy rates and strong asking rents

6. Carrum Downs

With quick freeway access and close proximity to Frankston North and the bay, Carrum Downs combines lifestyle and affordability. Its strong rental yields and increasing demand make it a popular pick for cash flow-focused investors. The suburb continues to benefit from population growth and limited housing stock, contributing to low vacancy rates and solid rental market performance.

• Median House Price: $715,000

• Median House Price Growth: 6.9%

• Median Unit Price: $550,000

• Median Unit Price Growth: 4.2%

• Rental Yields: 4.8%

• Annual Capital Growth: 6.4%

• Growth Drivers: Location, affordability, public schools

• Infrastructure Development: EastLink upgrades, shopping centre modernisation

• Investment Potential: Solid performer for both yield and growth metrics

7. Dandenong

Dandenong is a long-standing commercial and residential hub experiencing a revival, thanks to urban renewal and a new wave of infrastructure investment. It’s also a favourite for investors focused on high rental demand and long-term capital growth. Its diverse community, strong employment base, and central location within the South East make it one of the most resilient markets in Victoria.

• Median House Price: $800,000

• Median House Price Growth: 7.1%

• Median Unit Price: $615,000

• Median Unit Price Growth: 5.1%

• Rental Yields: 4.6%

• Annual Capital Growth: 6.8%

• Growth Drivers: Employment opportunities, cultural diversity, transport hubs

• Infrastructure Development: Dandenong revitalisation project, transport network upgrades

• Investment Potential: Strong due to diversity of stock and ongoing urban renewal

Sources: Realestate.com.au, Domain, Victoria Government, SQM Research. Please note that property prices tend to fluctuate over time; hence, it’s always best to consult with a real estate agent for the latest market values. 

Targeting high-growth real estate in South East Melbourne? Our brokers help investors choose the right finance strategy and loan structure. Contact EverLend’s Melbourne mortgage brokers on 03 7036 3356 or visit www.everlend.com.au.

FAQs

What are the fastest-growing suburbs in South East Melbourne?

Clyde North, Officer, and Cranbourne East are currently seeing the highest growth in property values and buyer activity.

Is South East Melbourne good for rental investments?

Yes, the area has strong rental demand, good rental yields, and low vacancy rates, making it ideal for investors.

What drives capital growth in Melbourne suburbs?

Capital growth is driven by infrastructure investment, migration patterns, public school access, and job opportunities.

Are these suburbs suitable for first-home buyers?

Yes, suburbs like Pakenham and Officer offer affordability and are eligible under the First Home Guarantee Scheme.

How do I finance a property in one of these growth suburbs?

You can explore options such as low-deposit or interest-only home loans with help from a mortgage broker like EverLend.

How reliable are rental yields in South East Melbourne?

Suburbs like Carrum Downs and Pakenham offer consistent rental yields between 4% and 4.8%, making them attractive for steady cash flow.

What kind of infrastructure is influencing growth in these suburbs?

Projects like the Clyde rail extension, Suburban Rail Loop, and road upgrades are directly contributing to suburb performance.

Thinking About Investing in South East Melbourne?

With the highest growth suburbs in South East Melbourne showing strong performance across metrics like median property price, rental yields, and capital growth, now could be the perfect time to make your move. Suburbs like Officer and Clyde North are seeing fast-paced development, while established areas like Dandenong offer proven resilience and consistent growth.

Need help financing your investment? EverLend’s trusted Melbourne mortgage brokers are here to guide you through the process. Whether you’re looking for low doc loans, construction loans, or exploring your options with home loan pre-approval, they’ve got you covered. Call 03 7036 3356 or visit www.everlend.com.au to get started.