The best Melbourne suburbs to invest in 

As a property investor, you’ll want to target areas of high growth in order to build your wealth. Well, look no further – a leading property expert pinpoints Melbourne’s rising property hotspots.

Your next property investment within the Melbourne property market     

If you’re an investor, the greater Melbourne region is likely to be firmly on your radar. This area has experienced unprecedented levels of growth and development over the last few years, making it a prime destination for astute buyers looking to build their portfolios with investment properties.

We asked seasoned Melbourne property expert Mark Polatkesen, Director and Senior Mortgage Broker at Mortgage Domayne, to highlight the specific estates and suburbs to consider now that provide affordable housing options and 

With estates throughout Melbourne’s north, Melbourne’s western suburbs and Melbourne’s south-east, investors seeking affordable properties with convenient access to amenities will be sure to find something worthwhile considering. 

Location: What to look for  

“When assessing locations to build an investment property, the first thing to consider is vacancy rates – when these are low, that means demand for rentals is high, so you’re more likely to be able to rent out your property fast, with minimal downtime,” says Polatkesen.

“Also look at the potential yield or weekly rent, as well as growth potential. Infrastructure, such as schools, transport, hospitals, and shops, are other important factors,” he says.

“Typically, three- and four-bedroom homes are more appealing to growing families. They also tend to favour newer communities and have two-car spaces.

“Based on my experience and research, [for investment opportunities] I tend to favour master-planned communities and established land developers,” he says.

“From Wyndham Vale and Werribee, Tarneit and Truganina, Craigieburn to Clyde North - there are so many communities and suburbs that you can invest in that all offer unique master planned living. This means you’ll have shopping centres, major retail centres, good transport links, local schools, recreational facilities and neighbouring suburbs with the same amenities within close proximity, all at your doorstep.”   

Planning on building your first investment property this year or next? Talk to our experts today about Melbourne’s property market yielding the best rental income possible.  

What are some booming suburbs in Melbourne?

If you’re looking to make a smart property-investment move in Melbourne, Polatkesen recommends honing in on these booming suburbs and estates:

1. Harpley Estate, Weribee

Harpley Estate, Werribee, is a new lakeside community located 35 kilometres southwest of the Melbourne CBD and 3.5 kilometres from the established suburb of Werribee.

“Harpley is appealing to investors because it is a master-planned community and ticks all the boxes for a sound investment. Conveniently located just 35 kilometres from Melbourne’s CBD, and right between Melbourne and Geelong City, with direct freeway access in both directions, making commuting in either direction quick and easy,” says Polatkesen

Future plans for Harpley Estate include direct access to the Princes Freeway and a bus service to Wyndham Vale and Werribee train stations.

This established community has four schools and a waterside town centre that will include a Coles supermarket, a medical centre, specialty stores, cafes, and restaurants. In addition, Harpley’s town centre is set to become a unique waterside dining destination in the southwest.

“The median unit price at Harpley Estate has risen 227 per cent in nine years. For example, a 448 square metre block that sold for $188,000 nine years ago is now selling for $427,000, offering huge growth potential,” he says.

The diverse range of housing types available at Harpley Estate means it appeals to a wide range of people, including singles, couples, families, and retirees. It attracts a mixed demographic, however, it’s mainly young and growing families who are moving into the area for its established infrastructure, amenities, and public open space.  

2. Merrifield Estate, Mickleham

Situated 30 kilometres north of the CBD in Melbourne’s expanding northern corridor, Merrifield Estate in Mickleham is Victoria’s largest master-planned, mixed-use community. This suburbs offers residents everything they need right on their doorstep, including a city centre, shops, schools, parks, sporting grounds, community programmes and a business park, making it a highly appealing home base for Melburnians, and therefore, has strong rental demand.

There are several reasons Polatkesen believes that building an investment property in Merrifield is a smart move, and why it has become so popular on the Melbourne property market. 

“Merrifield Estate is relatively close – but not too close – to industrial parks, which appeals to many blue-collar workers, as they can get to work in as little as 10 minutes.

“In addition, there’s a selection of public and private schools locally, a hospital 20 minutes’ drive away, and it’s only a five-minute drive to the Hume Highway,” he says.

Merrifield Estate has seen impressive growth in recent years. “In 2015, our entry-level 263-square-metre allotments were priced from $118,900. Today, the same lot sizes are priced at $325,000, which is a 270% growth – these are outstanding figures,” says Polatkesen. And the estate appeals to a broad cross-section of people, he adds; “young families, young couples, local mum and dad investors, and quality spec builders.”    

3. Officer, South East Melbourne 

The leafy suburb of Officer, 48 kilometres south-east of the Melbourne CBD and just west of Pakenham, has seen notable value growth over the past year, and it’s easy to see why. It offers easy connectivity to major roads and public transport and has top-notch amenities, including shops, schools, and restaurants. It offers residents a relaxed, outdoorsy lifestyle, with 23 parks covering nearly 4.3 per cent of its total area.

The median house price in Officer is $728,750, up 3.7% over the last 12 months, while rent currently sits at around $520 per week for a three-bedroom house, with an annual rental yield of 4%.

Officer is an area populated mostly by couples with young children, with the majority working in a professional occupation, and paying between $1,800 and $2,399 per month for their mortgage. 

What are the best suburbs to invest in Melbourne under $500k?

For budget-conscious investors, some of the best investment suburbs to consider under $500k include Werribee, Melton, and Craigieburn. These areas offer affordable property prices, strong rental yields, and potential for capital growth. Werribee boasts excellent amenities and transport links, while Melton and Craigieburn are experiencing rapid development and population growth, making them attractive options for long-term investment.

What is the most liveable suburb in Melbourne?

South Yarra is often regarded as the most liveable suburb in Melbourne. Known for its vibrant lifestyle, South Yarra offers an excellent mix of dining, shopping, and recreational options. The suburb features beautiful parks, such as the Royal Botanic Gardens, and boasts easy access to public transport. Its proximity to the CBD, coupled with high-quality schools and a safe, friendly community, makes South Yarra a top choice for residents seeking a high standard of living.

Carlisle Homes: Your perfect build-to-invest partner

At Carlisle, we’ve been helping clients build investment properties for over twenty years. We provide quality, energy-efficient homes that offer great value for money with the latest contemporary features.

We offer a range of investment opportunities, including new homes, knockdown-rebuilds, house & land packages, display homes for sale, and more. Evaluate the potential returns of investing in these sought-after Melbourne suburbs and estates using our Investment Property Calculator. This tool helps you estimate rental yields and capital growth to maximise your investment opportunities. This makes it easy for you to find the perfect property type to suit your needs. Come and chat to us today!