- 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
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
Top 20 growth suburbs in Melbourne
- Wandin East
- Wandin North
- Seville
- Gruyere
- Seville East
- Narre Warren South
- Chirnside Park
- South Morang
- Pearcedale
- Croydon South
- Tyabb
- Somerville
- Baxter
- Burnside Heights
- Lysterfield South
- Manor Lakes
- Hallam
- Delahey
- Upwey
- 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.
Seville
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.
Gruyere
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.
