20 Mar 2025 10 Best Investment Suburbs in Melbourne Investors Should Watch in 2025
Finding the best investment suburbs in Melbourne can feel overwhelming, especially with the city’s ever-changing property market. Melbourne’s strong population growth, diverse economy, and massive infrastructure projects make it a hotspot for property investors chasing long-term gains and steady rental demand.
If you’re planning to buy an investment property, our experienced mortgage brokers at EverLend can guide you through the loan process—helping you find competitive rates and tailored lending solutions. Working with a broker means less stress, more choice, and expert advice every step of the way.
So, where should savvy investors be looking in 2025? Let’s dive into the top Melbourne suburbs that are set to offer the best investment opportunities.
#1 Cranbourne – Rapid Growth Hub
Cranbourne’s population boom is driven by new estates and major infrastructure like the Cranbourne Line Upgrade, improving rail connections to the CBD. The suburb’s proximity to the Royal Botanic Gardens adds green appeal for families and renters alike. Affordable entry prices and solid rental demand make Cranbourne a standout for investors.
- Median House Price: $630,000
- Median House Rental Price: $440 per week
- Average House Rental Yield: 3.9%
- Median Unit Price: $450,000
- Median Unit Rental Price: $370 per week
- Average Unit Rental Yield: 4.3%
#2 Tarneit – Affordable Growth Suburb
Tarneit continues to thrive, with the Tarneit Station offering fast city access and upcoming Wyndham stadium boosting local development. New schools and retail centres are keeping this area on every investor’s radar. Its affordability and strong population growth fuel demand.
- Median House Price: $620,000
- Median House Rental Price: $440 per week
- Average House Rental Yield: 3.8%
- Median Unit Price: $460,000
- Median Unit Rental Price: $380 per week
- Average Unit Rental Yield: 4.3%
#3 Clyde North – Family Living Boom
Clyde North is booming with young families, drawn to new estates like Selandra Rise and modern schools. Future infrastructure, including Clyde Rail extension plans, will further enhance connectivity. Parks, shops, and affordability make it a growth hotspot.
- Median House Price: $660,000
- Median House Rental Price: $460 per week
- Average House Rental Yield: 4.0%
- Median Unit Price: $470,000
- Median Unit Rental Price: $380 per week
- Average Unit Rental Yield: 4.2%
#4 Officer – Southeast Lifestyle Appeal
Officer’s appeal lies in its balance of green spaces, schools, and Officer Station connecting locals to the CBD. The suburb’s planned retail hubs and education precincts attract both families and renters. Low vacancy rates point to ongoing demand.
- Median House Price: $690,000
- Median House Rental Price: $470 per week
- Average House Rental Yield: 3.8%
- Median Unit Price: $490,000
- Median Unit Rental Price: $380 per week
- Average Unit Rental Yield: 4.0%
#5 Glen Waverley – Elite School Zone
Glen Waverley boasts strong, consistent demand due to Glen Waverley Secondary College, one of Melbourne’s top public schools. The bustling The Glen Shopping Centre and train station make it attractive to families and professionals. High stability and low vacancy rates signal solid long-term gains.
- Median House Price: $1.75 million
- Median House Rental Price: $720 per week
- Average House Rental Yield: 2.1%
- Median Unit Price: $880,000
- Median Unit Rental Price: $540 per week
- Average Unit Rental Yield: 3.2%
#6 Brighton – Blue-Chip Bayside
Brighton’s beachside charm and luxury lifestyle keep it a favourite with high-net-worth investors. Landmarks like Brighton Beach’s iconic bathing boxes and elite schools fuel demand. It’s a classic blue-chip suburb with excellent long-term capital growth.
- Median House Price: $3.1 million
- Median House Rental Price: $1,400 per week
- Average House Rental Yield: 2.3%
- Median Unit Price: $960,000
- Median Unit Rental Price: $630 per week
- Average Unit Rental Yield: 3.4%
#7 Brunswick East – Trendy Inner-North
Brunswick East blends inner-city convenience with a thriving arts and food scene, highlighted by Lygon Street’s cafes and restaurants. Gentrification and new apartments draw in young professionals and students. Strong rental demand and steady infrastructure upgrades make it a smart pick.
- Median House Price: $1.32 million
- Median House Rental Price: $725 per week
- Average House Rental Yield: 2.8%
- Median Unit Price: $630,000
- Median Unit Rental Price: $510 per week
- Average Unit Rental Yield: 4.2%
#8 Bentleigh – Family Favourite
Bentleigh’s popularity is driven by top school zones, especially Bentleigh West Primary School, and its proximity to beaches and Centre Road shopping precinct. A leafy, established suburb with strong demand from families looking to settle long-term.
- Median House Price: $1.5 million
- Median House Rental Price: $750 per week
- Average House Rental Yield: 2.6%
- Median Unit Price: $770,000
- Median Unit Rental Price: $490 per week
- Average Unit Rental Yield: 3.3%
#9 Essendon – Lifestyle and Transport
Essendon shines with its historic homes, leafy streets, and direct tram and train links via Essendon Station. The suburb’s parks, cafes, and elite schools attract buyers seeking lifestyle with city convenience. Growing demand continues to push prices up.
- Median House Price: $1.45 million
- Median House Rental Price: $725 per week
- Average House Rental Yield: 2.6%
- Median Unit Price: $610,000
- Median Unit Rental Price: $460 per week
- Average Unit Rental Yield: 3.9%
#10 Moonee Ponds – Steady Inner-West Performer
Moonee Ponds is known for its vibrant Puckle Street shopping precinct and easy access to the CBD. The mix of heritage homes and modern apartments appeals to a wide tenant pool. Its solid growth record and reliable rental demand make it a safe bet.
- Median House Price: $1.4 million
- Median House Rental Price: $695 per week
- Average House Rental Yield: 2.6%
- Median Unit Price: $590,000
- Median Unit Rental Price: $450 per week
- Average Unit Rental Yield: 4.0%
Why These Melbourne Suburbs Made the 2025 Investment List
Melbourne’s property market is vast, but not every suburb offers the same potential for growth or returns. These ten suburbs stood out based on a combination of data, market trends, and the real-world factors driving demand in 2025.
Here’s why they made our list:
- Strong Infrastructure Investment: Major projects like rail upgrades, new schools, and retail hubs are boosting suburb growth potential and liveability.
- Solid Population Growth: Rapidly expanding suburbs like Clyde North and Tarneit are attracting families and migrants, creating strong housing demand.
- High-Ranking School Zones: Suburbs such as Glen Waverley and Bentleigh continue to thrive thanks to their highly sought-after school catchments.
- Desirable Lifestyle Amenities: Beachside Brighton and vibrant Brunswick East offer lifestyle perks that maintain buyer and renter demand.
- Balanced Affordability and Growth: Outer suburbs like Cranbourne and Officer remain affordable while showing promising capital growth projections.
- Consistent Rental Demand: Low vacancy rates across these areas ensure steady rental income and attractive yields for investors.
- Diverse Investment Options: From blue-chip to affordable growth corridors, these suburbs cater to different strategies—whether chasing yield, capital growth, or long-term stability.
Chat with our Mortgage Brokers at EverLend
Thinking about investing in one of Melbourne’s top suburbs for 2025? Our expert mortgage brokers at EverLend are here to help you explore your loan options, compare lenders, and find a finance solution tailored to your investment goals.
- Access competitive rates
- Save time with expert guidance
- Get property investment insights from brokers who know Melbourne
Visit our website at www.everlend.com.au or give us a call now at 03 7036 3356. Let’s make your property investment journey simple and stress-free—reach out today!
Frequently Asked Questions (FAQs)
What are the best investment suburbs in Melbourne?
Cranbourne, Tarneit, and Glen Waverley rank high for growth potential, infrastructure, and rental demand. Your best pick depends on your budget and investment goals.
What suburbs will boom in 2025 in Melbourne?
Clyde North, Officer, and Tarneit are tipped for strong growth due to major developments and population surges. These suburbs combine affordability with future infrastructure plans.
What suburbs are most in demand in Melbourne?
Glen Waverley, Brighton, and Brunswick East remain highly sought after for lifestyle, schools, and proximity to the CBD. Demand from buyers and renters keeps prices and yields solid.
Which is the fastest growing suburb in Melbourne?
Clyde North is one of the fastest-growing suburbs, driven by new estates and booming family demand. Tarneit also shows rapid growth backed by strong population increases.
Is it worth investing in Melbourne property in 2025?
Yes, Melbourne’s population growth and infrastructure projects make it a strong long-term investment choice. Steady rental demand supports reliable returns.
What factors should I consider when choosing a suburb to invest in?
Look at population growth, infrastructure projects, school zones, and rental yields. These factors help drive both capital growth and steady rental income.
Are outer suburbs in Melbourne good for investment?
Absolutely, outer suburbs like Cranbourne and Officer offer affordability and growth potential. They’re popular with young families, boosting demand and future price growth.
Wrapping Up
Melbourne’s property market in 2025 offers a mix of solid growth suburbs, blue-chip stability, and exciting new opportunities for investors. Whether you’re after strong rental returns or long-term capital growth, choosing the right suburb makes all the difference.
If you’re planning to invest, our team at EverLend is here to help make the process smoother—plus, we offer a free consultation to get you started. Reach out today by visiting our website www.everlend.com.au or call us at 03 7036 3356.
Let’s chat about your goals and find the best loan options to suit your investment plans in 2025!