best suburbs to invest in melbourne 2023
Top 20 growth suburbs in Melbourne are typically located in outer ring suburbs. Image: Canva.
  • The best suburbs in Melbourne are clustered around the Yarra Valley.
  • Melbourne is forecast to see between a -1% to +2% shift in prices by the end of 2023.
  • Listings figures are also improving for Melbourne.

Suburbtrends has revealed the best suburbs in Melbourne. The Melbourne suburb ranking considers a comprehensive range of factors that determine a suburb’s desirability and investment potential.

While other major capitals are forecast to record larger levels of growth towards the end of this year, PropTrack is expecting Melbourne to see prices move between -1% and +2%.

Dwelling price forecasts for 2023 and 2024 calendar year

Dwelling price forecasts 2023 and 2024 calendar year
Source: Proptrack.

Melbourne property prices have also been fairly stable, with the latest PropTrack Home Price Index finding the city recorded a monthly growth of 0.01%; the city remains 4.91% below its peak and 1.3% below last year.

A growing number of properties are also coming onto the Melbourne real estate market, with Ray White data finding the city recorded a 7.2% increase in new listings; the year on year figures, however, show listing numbers are 5.6% lower.

Listing movements in Australia for July 2023

July 2023 lisitng movements.
July 2023 lisitng movements. Source: Ray White.

Top 20 growth suburbs in Melbourne

  1. Wandin East
  2. Wandin North
  3. Seville
  4. Gruyere
  5. Seville East
  6. Narre Warren South
  7. Chirnside Park
  8. South Morang
  9. Pearcedale
  10. Croydon South
  11. Tyabb
  12. Somerville
  13. Baxter
  14. Burnside Heights
  15. Lysterfield South
  16. Manor Lakes
  17. Hallam
  18. Delahey
  19. Upwey
  20. Meadow Heights

How were Melbourne suburbs ranked?

Suburbtrends first scored suburbs at the SA2 level, considering price changes over a five year, and three month period. The analysis also included analysis on inventory, days on market, vacancy, yield, rent trend, and buying and renting affordability.

The second level of analysis was at the suburb level, taking into account four variables: fully owner, mortgage percentage 2021, AI impact, and SEIFA score.

“Our goal is to empower buyers and investors with a deep understanding of the real estate market. The Top 20 Lists showcase the suburbs that demonstrate strong desirability and investment potential, allowing individuals to identify areas that align with their goals,” said Suburbtrends founder, Kent Lardner.

“Scorecards are nuanced tools, considering multiple factors that contribute to a suburb’s attractiveness. By examining price changes, supply and demand indicators, rental market dynamics, and affordability measures, we capture a comprehensive snapshot of each suburb’s investment potential. It’s about providing a comprehensive view rather than relying on a single variable.”

Top 20 Melbourne suburbs for desirability and investment

Rank State Suburb From To Score
1 VIC Wandin East $740,000 $980,000 72.56
2 VIC Wandin North $740,000 $980,000 72.00
3 VIC Seville $740,000 $980,000 71.92
4 VIC Gruyere $740,000 $980,000 71.82
5 VIC Seville East $740,000 $980,000 71.26
6 VIC Narre Warren South $720,000 $864,000 70.25
7 VIC Chirnside Park $765,000 $1,030,000 68.91
8 VIC South Morang $670,000 $935,000 68.57
9 VIC Pearcedale $715,000 $955,000 68.48
10 VIC Croydon South $742,000 $980,000 68.40
11 VIC Tyabb $715,000 $955,000 68.31
12 VIC Somerville $715,000 $955,000 67.79
13 VIC Baxter $715,000 $955,000 67.46
14 VIC Burnside Heights $690,000 $880,000 65.91
15 VIC Lysterfield South $700,000 $920,000 65.44
16 VIC Manor Lakes $500,000 $635,000 64.04
17 VIC Hallam $645,000 $787,000 63.26
18 VIC Delahey $588,000 $707,000 62.69
19 VIC Upwey $705,000 $980,000 61.66
20 VIC Meadow Heights $521,000 $620,000 60.77

Source: Suburbtrends.

Wandin East

Located just over an hour east of Melbourne, rentals in the suburb of Wandin East are typically around the $500 per week mark, according to SQM. The sparsely populated area, understandably, sees very few properties come to market, with the latest total listings at 61.

Total property listings for 3139, including Wandin East

Wandin North

The suburb of Wandin North is also about an hour east of Melbourne and shares a postcode with Wandin East. The area is dotted with various fruit farms and wineries.


Just east of Wandin East and Wandin North, the suburb again shares the same postcode. These suburbs are a stone’s throw from the Yarra Ranges and is situated within the Yarra Valley wine region.


Located north of the past three suburbs, and in the postcode 3770, Gruyere is yet another Yarra Valley wine region suburb. It is likewise about an hour from the Melbourne CBD.

Seville East

Rounding out the top five is another suburb located in the Yarra Valley. Seville East is a little further out from previous suburbs, adding about 10 to 20 minutes to the drive to the CBD.

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