If you’re looking to invest in Melbourne but don’t know where to start, here are the best suburbs to look at in 2023.

Melbourne is one of the best cities to invest in if you’re looking to buy an Australian property, with many affluent suburbs set to grow throughout 2023. If you’re interested in the Melbourne property market, read on to discover the best suburbs to pay attention to in 2023.

Key Takeaways:

  • Melbourne’s property market will likely stagnate throughout 2023 because of climbing interest rates.
  • The median house price for properties in Melbourne CBD is $901,000.
  • Elsternwick, Bentleigh, and Hampton are some of the best suburbs in Melbourne to invest in.

What is the state of the Melbourne property market?

While other housing markets suffered because of the pandemic, the Melbourne property market rose by 25% from 2020 to 2021. However, with higher interest rates hitting in 2022, the previous momentum in the Melbourne market has decreased.

Since June 2022, housing prices have fallen by around 2%. They are expected to stay largely the same in 2023, thanks to an oversupply of property and climbing interest rates.

It’s unlikely that new housing will be built in and around Melbourne CBD in 2023 because of the number of properties on the market and a lack of demand for new housing.

What is the median house price in Melbourne CBD?

In the latest June 2022 quarter, the median house price for Melbourne homes increased by 0.1%, reaching $901,000. Within Melbourne CBD, prices increased by 5.4% for houses.

What is the average rental yield for a Melbourne property?

You can expect an attractive rental yield from Melbourne properties, with the average house achieving 3.6%. The median rent currently sits at $420 a week, a 19%-21% rise from 2021.

Rent in Melbourne and its surrounding areas is expected to rise further throughout 2023 as demand increases and house prices surge. You can expect an attractive rental yield if you’re looking to invest in a Melbourne property.

The nine best suburbs of 2023

So, if you’re keen to invest in property, you’ll need to know the most popular and profitable Melbourne suburbs. There are over 1,000 suburbs in and around Melbourne, each attracting steady buyer demand.

Here are the best suburbs to invest in, in Melbourne for 2023.


Elsternwick is a desirable suburb for young families in Melbourne’s CBD with a beautiful beach, sought-after schools, and attractive shopping centres. There are a few remaining Melbourne locations with the same amenities as Elsternwick.

Elsternwick has seen massive growth over the past decade, with property growth of 13.66 per cent. The median house price is currently $2,200,000.


Bentleigh is one of Melbourne’s most high-demand areas, with excellent transport links and links to major shopping centres such as Southland and Chadstone. Mainly housing young couples and families, there are plenty of schools in the area as well as parks and local shops.

The median house price for Bentleigh is $1,490,000, up by 1.5 per cent. The property market is likely to rise even further throughout 2023.


Close to the popular (and expensive) suburb of Brighton, Hampton sits alongside the beach and has fantastic amenities, including bars, restaurants, and shops. Hampton is one of the more prestigious suburbs in South East Melbourne, with a booming property market.

The median price for a Hampton home is $2,555,000.


Melton is an outer North Western suburb of Melbourne and is one of the best options for property investors.

With a price growth of 68% in the last five years, Melton has seen significant property investment, with strong capital gains, a high rental yield, and low tenancy vacancies.

Although Melton previously had a questionable reputation, investment has seen the implementation of a train line to the city and many parks and amenities. With affordable apartments, Melton attracts a younger crowd.

The median sale price in Melton is currently $500,000, making it one of the best suburbs to invest in.

Ascot Vale

Located in North Melbourne, Ascot Vale is one of the main inner city suburbs. The property market in Ascot Vale is booming thanks to its easy access to the city, outdoor spaces and sprawling golf courses.

Ascot Vale is also one of the more affordable outer ring precincts available on the affluent North Melbourne market. The average house price is $1,300,000.

Box Hill

Just 20 kilometres from Melbourne’s city centre, Box Hill has become a sought-after location for first home buyers. It’s one of the best inner-city suburbs with a bustling centre, superb amenities and schools.

Box Hill is an up-and-coming area, with a median sale price of $1,725,900 and unit prices averaging $492,500.

Glen Waverly

Glen Waverley is home to thousands of young families and professional couples, boasting a low crime rate and access to prestigious schools. There are lots of career opportunities within Glen Waverly, including the Victoria police training academy, as well as the Woolworths distribution centre and major corporate parks within the area.

This is one of the best suburbs to invest in thanks to its attractive local amenities such as the Glen Waverley golf course, the Glen Waverley railway station and a major shopping centre (Glen shopping centre).

The median price of homes in Glen Waverley is around $1,600,000, increasing rapidly over the past decade.


Dallas is one of the coolest suburbs in North Melbourne and could be an affordable and profitable location for your next investment property.

This Melbourne suburb has a thriving population with easy access to the city and many local shops, bars, and restaurants.

While Melbourne’s North quarter isn’t cheap, the Dallas suburb has a median property price of just $488,000, making it one of the most affordable in the area.


Epping is located just 20km from the city centre, is home to the Melbourne wholesale markets, and is known for its bushland and expansive orchards. This area is popular with expanding families looking for a quiet, peaceful suburb.

The median price of an Epping home is $675,000, having seen significant price growth over the past five years. Epping is, therefore, a fantastic place for property investment.

Consult a Lendstreet Mortgage Broker

At Lendstreet, we give you tailored advice on your next investment. Consult one of our professionals today if you want to sell your Melbourne property and take out an investment loan or discuss refinancing options.

You can also reach us through our Melbourne office contact details below.

Address: 10-20 Gwynne St, Cremorne VIC 3121, Australia
Phone: 1300 317 042

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How much does property cost in Melbourne?

The average house price in Melbourne is $901,000.

Will house prices drop in 2023 in Melbourne?

House prices are unlikely to drop in 2023, though prices will not see as much growth. Experts predict that prices will rise from 3% to 7%.

Is it a good time to buy property in Melbourne?

House prices are unlikely to increase throughout the year, so it’s a potentially good idea to buy property in Melbourne in 2023. However, the rental market is set to decline due to an increase in rental properties in the area.

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