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13 Dec 2024 12 Fastest Growing Suburbs in Melbourne with Strong Investment Potential

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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

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. Tarneit

A booming western suburb, Tarneit has become a real estate hotspot due to its affordability and rapid development. With new schools, shopping centres, and transport links, demand for housing continues to rise.

  • Current Market:
    • Median house price: $650,000
    • Rental yield: 4.4%
  • Growth Drivers:
    • High population growth (+5.3% annually).
    • Major infrastructure projects like the Western Roads Upgrade and Tarneit Train Station expansion.
  • Investment Potential:
    • Strong capital growth, 10-year price increase of about 110%.
    • Consistently low vacancy rates of about 1.8%, indicating strong rental demand.

2. Truganina

Located next to Tarneit, Truganina is another fast-growing western suburb attracting first-home buyers and investors. Its proximity to the CBD (22km away) and major employment hubs makes it a desirable location.

  • Current Market:
    • Median house price: $670,000
    • Rental yield: 3.2%
  • Growth Drivers:
    • Strong demand for housing due to new estates and master-planned communities.
    • Close to Western Freeway & industrial employment zones.
  • Investment Potential:
    • Capital growth rate of about 9.2% per year over the past decade.
    • High rental demand, particularly from young families and professionals.

3. Werribee

Werribee is one of Melbourne’s largest and fastest-growing suburbs, driven by strong population growth and ongoing infrastructure projects. With its affordable property prices and improved transport links, it has become a prime location for investors seeking both capital growth and rental demand.

  • Current Market:
    • Median house price: $620,000
    • Rental yield: 3.5%
  • Growth Drivers:
    • Large-scale projects like the Werribee East Precinct, creating thousands of jobs.
    • Upcoming rail and freeway improvements improving connectivity.
  • Investment Potential:
    • Strong capital growth potential as demand increases.
    • One of Melbourne’s most affordable suburbs near major employment zones.

4. Clyde North

Clyde North is a fast-growing southeastern suburb experiencing significant residential expansion, driven by new housing estates and infrastructure developments. With its family-friendly lifestyle, upcoming schools, and improved transport links, it continues to attract both homebuyers and property investors looking for long-term growth.

  • Current Market:
    • Median house price: $710,000
    • Rental yield: 3.3%
  • Growth Drivers:
    • Large-scale residential developments and future Clyde railway station.
    • Expanding retail & education hubs (Clyde Shopping Centre, new schools).
  • Investment Potential:
    • 10-year property growth exceeding 115%.
    • Increasing demand from first-home buyers and renters.

5. Mickleham

Mickleham is one of the fastest-growing northern suburbs, with high demand for housing driven by its affordability and rapid population growth. Its proximity to key employment hubs like Melbourne Airport and business precincts makes it an attractive location for both homebuyers and investors seeking long-term capital growth.

  • Current Market:
    • Median house price: $680,000
    • Rental yield: 3.1%
  • Growth Drivers:
    • Population boom (+4.7% annually).
    • Government-backed road & infrastructure projects.
  • Investment Potential:
    • Vacancy rate under 2%, signaling strong rental demand.
    • High long-term capital growth potential.

6. Donnybrook

Donnybrook, a rapidly expanding northern suburb, is experiencing significant residential growth, with large-scale housing developments like Olivine Estate and Kinbrook Estate attracting homebuyers and investors. With planned infrastructure upgrades, including new schools, parks, and improved public transport links, Donnybrook is set to become a key growth corridor in Melbourne’s north.

  • Current Market:
    • Median house price: $700,000
    • Rental yield: 3.1%
  • Growth Drivers:
    • Major developments like Donnybrook Station upgrades.
    • Rapidly expanding residential estates.
  • Investment Potential:
    • Strong population growth leading to increased demand.
    • New transport links enhancing connectivity.

7. Sunbury

Sunbury, a well-established yet rapidly growing suburb, is set to benefit from major infrastructure projects, including the Melbourne Airport Rail Link and Sunbury Road upgrades, which will improve connectivity to the CBD and airport. With strong rental demand, a thriving local economy, and ongoing residential developments, Sunbury continues to attract both investors and homebuyers seeking long-term capital growth.

  • Current Market:
    • Median house price: $750,000
    • Rental yield: 3.2%
  • Growth Drivers:
    • Sunbury Train Line upgrade and Melbourne Airport Rail project.
    • Expanding retail & lifestyle amenities.
  • Investment Potential:
    • Rising property values as demand increases.
    • Attractive for investors & homebuyers alike.

8. Officer

Officer, a rapidly growing southeastern suburb, is experiencing strong residential expansion, with major housing developments like Arcadia Estate and Kaduna Park Estate attracting homebuyers and investors. With upgraded transport links, including Officer Train Station and Princes Freeway access, along with new schools and shopping precincts, the suburb is set for continued growth and rising property demand.

  • Current Market:
    • Median house price: $720,000
    • Rental yield: 3.1%
  • Growth Drivers:
    • Well-planned transport and infrastructure expansion (Officer Train Station upgrades).
    • New housing estates attracting first-home buyers and investors.
  • Investment Potential:
    • 10-year capital growth of ~98%, making it a solid long-term investment.
    • Low vacancy rates due to high demand for rentals.

9. Wollert

Wollert, a rapidly growing northern suburb, is experiencing significant residential expansion, with major developments like Aurora Estate, Lyndarum North, and Rathdowne Estate attracting new residents. Its proximity to employment hubs in Epping and Thomastown, along with planned infrastructure upgrades such as the E6 freeway and Wollert Train Station proposal, is driving strong demand from homebuyers and investors.

  • Current Market:
    • Median house price: $690,000
    • Rental yield: 3.2%
  • Growth Drivers:
    • Rapid population increase (+5.1% annually).
    • Future Epping Road and O’Herns Road upgrades improving connectivity.
  • Investment Potential:
    • Strong long-term capital appreciation potential.
    • Consistently low vacancy rates for about 1.7%, indicating high rental demand.

10. Fraser Rise

Fraser Rise, a rapidly developing western suburb, is experiencing strong housing demand, fueled by affordable new estates like Westwood, Aldo, and The Address. With proximity to Caroline Springs, new schools, parks, and planned retail precincts, Fraser Rise is quickly emerging as an attractive option for first-home buyers and investors seeking long-term capital growth.

  • Current Market:
    • Median house price: $650,000
    • Rental yield: 3.4%
  • Growth Drivers:
    • Major new housing developments and strong government investment.
    • Improved public transport access and road upgrades.
  • Investment Potential:
    • Affordable entry point compared to inner-west suburbs.
    • Steady capital growth and rental demand, making it attractive to investors.

11. Point Cook

Point Cook, an established yet continuously growing suburb, remains a top investment choice due to its proximity to Melbourne CBD (22–25km), waterfront lifestyle, and strong infrastructure. With highly regarded schools like Suzanne Cory High School, major shopping hubs such as Stockland Point Cook, and excellent transport links via the Princes Freeway, the suburb continues to attract families, professionals, and investors looking for long-term capital growth.

  • Current Market:
    • Median house price: $820,000
    • Rental yield: 3.0%
  • Growth Drivers:
    • Close to major employment hubs like the Melbourne CBD (25km away).
    • Strong school zones, shopping centers, and waterfront lifestyle appeal.
  • Investment Potential:
    • Consistently high rental demand due to its location.
    • Capital growth of about 95% over the past decade, making it a proven investment.

12. Rockbank & Aintree

Rockbank and Aintree, located in Melbourne’s rapidly growing western corridor, are booming master-planned communities, with major developments like Woodlea (Aintree), Bridgefield, and Accolade (Rockbank) driving population growth. With the Rockbank Train Station upgrade, future Woodlea Town Centre, new schools, and improved road access via the Western Freeway, these suburbs are set to become key investment hotspots, offering affordable entry points and strong long-term capital growth potential.

  • Current Market:
    • Median house price: $670,000
    • Rental yield: 3.2%
  • Growth Drivers:
    • New train station upgrades and freeway access to the CBD.
    • Upcoming retail and lifestyle precincts, making it an emerging hotspot.
  • Investment Potential:
    • Strong capital appreciation potential as the suburb continues developing.
    • Affordable property prices compared to other western suburbs.

**note that the figures above are average estimates sourced from Realestate.com.au and CoreLogic.

 

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!

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