Living in Melbourne’s Suburbs
A vibrant and cosmopolitan city, Melbourne has long been a sought-after destination for residents and investors alike. The fastest growing suburbs in Melbourne have their blend of urban sophistication and natural beauty, making the city one of Australia’s most desirable places to live in.
In recent years, certain suburbs have rapidly grown in popularity, attracting both new residents and property investors. In this article, we will explore these thriving areas and discuss why they present promising investment opportunities that could deliver strong returns over the next decade.
Sydney, Melbourne and Brisbane Property Comparison
While Melbourne will be the main focus of discussion, it’s important to compare it to Australia’s other major cities: Sydney and Brisbane. Together, these three cities form a dynamic property market triangle, each offering distinct opportunities and varying levels of affordability.
Sydney: The Expensive Harbour City
Sydney, Australia’s oldest and most iconic city, has long been a property powerhouse, especially in the last two decades.
Its world-famous harbour, stunning beaches, and vibrant lifestyle have made it a highly desirable place to live. However, Sydney’s property market has also been known for its volatility, with prices experiencing significant fluctuations over the years.
Sydney typically has the highest median house prices in Australia at $1,350,000 for 2-bedroom units and surpassing $1,600,000 for house prices. Despite recent market corrections, demand for property in Sydney remains strong, particularly in prime locations.
Sydney’s future outlook is positive, with continued investment in infrastructure and a strong economy. However, affordability challenges may persist, limiting the number of first-home buyers entering the market.
Melbourne: A Balanced Investment Approach
Melbourne has a strong economy, a diverse job market, and a high quality of life, which have made it a highly desirable city in which to live and invest.
The property market has historically been more stable than Sydney’s, with prices experiencing moderate growth. The city’s diverse range of suburbs offers a variety of property options to suit different budgets and preferences, with the median prices of units in the fastest growing suburbs in Melbourne at around $564,095 and houses at $1,032,020.
Melbourne’s future outlook is positive, with continued population growth and investment in infrastructure. The city’s strong economy and livability factors are expected to support the property market for years to come.
Each of these three cities offers distinct property market dynamics and opportunities. Sydney, Melbourne, and Brisbane all have their unique advantages and disadvantages, and the best choice for you will depend on your individual needs and preferences.
Brisbane: The Most Affordable Option
Brisbane, the busy capital of Queensland, has emerged as a more affordable alternative to Sydney and Melbourne.
Its subtropical climate, growing economy, and proximity to beautiful beaches have made it a popular choice for both residents and investors.
Brisbane’s median house prices are generally lower than Sydney and Melbourne, with units at a median price of $549,704 and houses at $924,498, making it a more accessible market for many buyers. The city has experienced significant growth in recent years, with strong demand for both residential and commercial property.
Brisbane’s future outlook is promising, with ongoing development projects and a growing population. The city’s affordability and lifestyle appeal are expected to continue driving demand for property.
Fastest Growing Suburbs in Melbourne
Melbourne has witnessed a surge in popularity in recent years, and certain suburbs have emerged as hot spots for new residents and investors. These suburbs offer a unique blend of urban amenities, natural beauty, and growth potential, making them highly sought-after destinations.
In this section, we will explore some of the fastest growing suburbs in Melbourne, delving into factors that contribute to their popularity, such as affordability, accessibility, and future development prospects, so you can make informed decisions about where to live or invest.
Frankston South
Frankston South is first on our list as one of the fastest growing suburbs in Melbourne.
This area generally offers more affordable housing options compared to inner-city suburbs, making it a popular choice for first-home buyers and investors.
The median house price in Frankston South is lower than the overall Melbourne average, at $570,000 for 2-bedroom units and $890,000 for 3-bedroom houses. However, prices have been steadily increasing due to strong demand.
Frankston South has a range of amenities, including shopping centres, schools, parks, and sports facilities. The nearby Frankston CBD offers a wider variety of shops and services.
It is also well-connected to Melbourne’s CBD by train and bus services. The Frankston railway station provides frequent services to the city centre.
Frankston South is undergoing redevelopment, with plans for new housing estates and infrastructure improvements. This growth is expected to increase property values in the area.
Camberwell
Camberwell is a more affluent suburb with higher property prices than Frankston South. It is known for its prestigious schools and tree-lined streets.
The median house price is significantly higher than the Melbourne average. The median house price for 2-bedroom units is $669,000, while for 3-bedroom houses, it’s $2,060,000.
Camberwell offers a wide range of amenities, including high-quality schools, shopping centres, parks, and restaurants. It is well-connected to the CBD by tram and bus services. The suburb is also close to several train stations.
It is a mature suburb with limited opportunities for large-scale development. However, there may be potential for redevelopment of older properties.
Keysborough
Keysborough is a relatively affordable suburb, especially compared to inner-city areas. It offers a good balance of affordability and convenience.
The median house price in the area is lower than the Melbourne average, at $530,000 for 2-bedroom units and $835,000 for 3-bedroom houses, making it a popular choice for first-home buyers.
Keysborough has a range of amenities, including shopping centres, schools, parks, and sports facilities. It is well-connected to the CBD by train and bus services. The suburb is also close to major highways.
Currently experiencing growth, Keysborough has plans for new housing estates and infrastructure improvements. This development is expected to increase property values in the area.
Beaumaris
Beaumaris is a premium coastal suburb with higher property prices compared to many other areas in Melbourne. However, it offers a highly desirable lifestyle.
The median house price in Beaumaris is significantly above the Melbourne average at $723,000 for 2-bedroom units and $1,755,000 for 3-bedroom houses. Demand for properties in this suburb is strong, driven by its beachside location and proximity to the CBD.
The area boasts a range of amenities, including beautiful beaches, parks, golf courses, and shopping centres. It is well-connected to the CBD by train and bus services, making it a convenient location for commuters.
Beaumaris is a mature suburb with limited opportunities for large-scale development. However, there may be potential for redevelopment of older properties.
Ferntree Gully
Ferntree Gully offers a relatively affordable option compared to some inner-city suburbs while still providing a suburban lifestyle with easy access to nature.
The median house price is below the Melbourne average, at only $580,000 for 2-bedroom units and $818,000 for 3-bedroom houses. Demand for properties in this suburb is driven by its proximity to the Dandenong Ranges and its family-friendly atmosphere.
It has a range of amenities, including shopping centres, parks, schools, and recreational facilities, and it is well-connected to the CBD by train and bus services. It is also close to major highways, providing easy access to other parts of Melbourne.
Ferntree Gully is experiencing growth, with plans for new housing estates and infrastructure improvements. This development is expected to increase property values in the area.
Keilor East
Keilor East is a relatively affordable suburb, especially compared to inner-city areas.
It offers a good balance of affordability and convenience. The median house price is below the Melbourne average, with 2-bedroom units costing $595,000, while 3-bedroom houses cost $910,000.
It has a range of amenities, including shopping centres, schools, parks, and sports facilities. The suburb is well-connected to the CBD by train and bus services. It is also close to major highways, providing easy access to other parts of Melbourne.
The area is experiencing growth, with plans for new housing estates and infrastructure improvements. This development is expected to increase property values in the area.
Mount Martha
Mount Martha is a premium coastal suburb with higher property prices compared to many other areas in Melbourne, but it does offer a highly desirable lifestyle.
The median house price in this suburb is significantly above the Melbourne average at $610,000 for 2-bedroom units and $1,055,000 for 3-bedroom houses.
Demand for properties is strong, thanks to its beachside location and proximity to the CBD.
Mount Martha boasts a range of amenities, including beautiful beaches, parks, golf courses, and shopping centres. It is well-connected to the CBD by train and bus services, making it a convenient location for commuters.
As for its future development potential, Mount Martha is a mature suburb with limited opportunities for large-scale development. However, there may be potential for redevelopment of older properties.
Richmond
Richmond is an inner-city suburb with a mix of property types that range from affordable apartments to high-end houses. It offers a vibrant culture, trendy cafes, and a solid rental market.
The median house price is higher than the Melbourne average, at $655,000 for 2-bedroom units and $1,508,000 for 3-bedroom houses. However, there are also more affordable options available, such as apartments and older homes.
This suburb boasts a vibrant culture, with a wide range of cafes, restaurants, bars, and shops. It is also home to several parks and recreational facilities. It is well-connected to the CBD by tram, train, and bus services. It is a convenient location for commuters and those who enjoy the city’s amenities.
This area is a mature suburb with limited opportunities for large-scale development. However, there may be potential for redevelopment of older properties.
Brighton East
Brighton East is a premium coastal suburb with higher property prices compared to many other areas in Melbourne. However, it offers a highly desirable lifestyle.
The median house price is significantly above the Melbourne average at $884,000 for 2-bedroom units and $1,800,000 for 3-bedroom houses. Demand for properties in this suburb is strong with its beachside location and proximity to the CBD, making it particularly appealing to home buyers.
The area boasts a range of amenities, including beautiful beaches, parks, golf courses, and shopping centres, and it is well-connected to the CBD by train and bus services.
Brighton East is a mature suburb with limited opportunities for large-scale development. However, that should not deter buyers as there may be potential for redevelopment of older properties.
Wantirna South
Wantirna South is a relatively affordable suburb, especially compared to inner-city areas. It offers a good balance of affordability and convenience.
The median house price in Wantirna South is below the Melbourne average, usually at $500,000 for 2-bedroom units and $1,030,000 for 3-bedroom houses, so it’s a popular choice for first-home buyers and investors.
This suburb has a range of amenities, including shopping centres, schools, parks, and sports facilities. It is also well-connected to the CBD by train and bus services. It is also close to major highways, providing easy access to other parts of Melbourne.
Wantirna South is currently experiencing growth, with plans for new housing estates and infrastructure improvements. This development is expected to increase property values in the area.
Key Considerations When Buying Property in Melbourne
Before making a decision, you must ensure your investment aligns with your goals and expectations when buying property in the fastest growing suburbs in Melbourne.
Here are some factors you should consider:
Investment goals
Capital growth – If your primary goal is long-term capital appreciation, consider investing in established suburbs with solid historical growth records.
Rental income – For steady rental income, focus on suburbs with high rental yields and a strong demand for rental properties.
Lifestyle – If lifestyle is a priority, choose a suburb that aligns with your preferences, such as proximity to schools, amenities, transport links, and recreational facilities.
Property type
House vs. apartment vs. condo unit – Houses generally offer more space and potential for future renovations, while apartments and condo units can be more affordable and require less maintenance.
New vs. established – New properties often come with warranties and modern amenities, while established properties may offer more character and potential for negotiation.
Market research
Recent trends – Analyse property price trends in your target suburbs to identify areas with consistent growth.
Economic indicators – Consider factors such as employment rates, population growth, and infrastructure development, which can impact property values.
Property condition
Inspection – Conduct a thorough property inspection with professionals to assess the its condition and identify any potential issues.
Building and pest reports – Obtain building and pest reports to ensure the property is structurally sound and free from pests.
Local Regulations
Zoning laws – Understand the zoning laws for your chosen suburb to ensure the property can be used as intended.
Building restrictions – Be aware of any building restrictions or heritage overlays that may limit future renovations or developments.
Financing
Mortgage rates – Compare mortgage rates from different lenders to secure the best deal.
Loan-to-value – Consider your loan-to-value ratio to determine the amount of deposit required.
Future Development
Infrastructure projects – Research any planned infrastructure projects, such as new transport links or developments, that may impact property values.
Urban renewal – Consider the potential for urban renewal in your chosen suburb, as this can lead to increased property values.
Investing in the Fastest Growing Suburbs in Melbourne
From the coastal charm of Beaumaris to the inner-city vibrancy of Richmond, there is something to suit every lifestyle and budget in any of the fastest growing suburbs in Melbourne.
When considering a property investment, it is crucial to conduct thorough research and carefully consider your individual goals and preferences. Factors such as investment objectives, property type, market trends, and local regulations should all be taken into account.
To ensure a successful property investment, seeking professional financial advice is highly recommended. Our team at Eakins Finance & Insurance can help you navigate the complexities of the property market and make informed decisions about your investment. Contact us to learn more.
