Some of the best suburbs to invest in Melbourne include Werribee, Box Hills, Preston, and Coburg, to name a few. In this guide, you’ll find the latest data (as of November 2025) about the housing market stats in these suburbs. You’ll also learn about the lifestyle, ongoing and planned infrastructure developments, connectivity, and other key factors that make these Melbourne suburbs popular among homebuyers, renters, and investors alike.
Melbourne’s property market is reversing past five-year trends and becoming an investment hotspot in Australia. Home prices in the capital city increased at their fastest pace in more than two years in October, up 1.1% in the month and 6.1% annually. Three interest rate cuts this year, rising property prices, immigration-driven population growth fuelling demand, and limited new housing supply have convinced investors that property investment in Melbourne is once again a profitable deal. Westpac, the country’s second-largest home lender, is forecasting prices for national residential dwellings to increase by 9% over the next 12 months. (Source)
That’s certainly great news for investors. But it’s worth noting that trends differ across the suburbs. Below are the top five Melbourne suburbs that tick all the boxes for investors—affordability, growth potential, and future upside. Let’s explore:
Best Suburbs to Invest in Melbourne in 2026
Werribee
| Median Price | Past 12-month Growth | Rental Yield | Median Weekly Rent | |
| Houses | $628,000 | +2.1% | 3.7% | $465 |
| Units | $440,000 | +1.1% | 4.7% | $410 |
Located 32km south-west of the CBD, Werribee is a family-friendly suburb with a nice combination of urban living and natural attractions. The region is packed with amenities and facilities required for a peaceful, fulfilling life, including schools, parks, shopping options, and more.
Werribee also benefits from the massive West Gate Tunnel project, which is poised to be completed in late 2025. This will reduce the commute time to the CBD by up to 20 minutes. It also has excellent rail connectivity via the Werribee train line and proximity to the Regional Rail Link. The Werribee Main Road – Princes Freeway Interchange Upgrade will add more traffic lights at key intersections, a new lane to the Werribee Main Road bridge, and an improved citybound entry ramp, reducing congestion and cutting travel times.
The state government also plans to increase the number of local jobs in the region to make Werribee an attractive place to live, work, and play.
Box Hill
| Median Price | Past 12-month Growth | Rental Yield | Median Weekly Rent | |
| Houses | $1,310,000 | +4.9% | 3.4% | $800 |
| Units | $396,000 | – | 7.67% | $586 |
If you’re looking for the best High rental yield suburbs in Melbourne, Box Hill may be the answer. Located 14 km east of Melbourne’s CBD. Box Hill is a multicultural suburb with a rich Asian influence and strong transport links via a train station and numerous bus routes.
There are reputable educational institutions, like Box Hill Institute, as well as the Box Hill Hospital, which serves as a major health facility in the region. With numerous parks, retail options like Box Hill Central Shopping Centre, and a mix of high-rise apartments and traditional homes, it offers a dynamic urban lifestyle. Read this article to know why investing in Box Hills has great potential for long-term investments.
Coburg
| Median Price | Past 12-month Growth | Rental Yield | Median Weekly Rent | |
| Houses | $1,160,000 | -0.9% | 3.3% | $700 |
| Units | $575,000 | +2.7% | 4.8% | $520 |
Located just 8 km from the CBD, Coburg offers strong investment opportunities with long-term growth. The suburb benefits from transport links, including trains, trams, and major arterial roads, ensuring strong tenant demand and capital growth potential. The suburb’s ongoing development and population growth, driven by younger professionals and families, is transforming the region with new cafés, boutique retail, and modern developments.
Ongoing population growth and access to major employment centres, universities, and medical precincts further offer long-term growth prospects for the local property market. Property values have remained resilient, with solid rental yields driven by tight vacancy rates. Major urban renewal projects, such as the Pentridge redevelopment, are renewing the area, attracting both renters and homebuyers.
Cranbourne
| Median Price | Past 12-month Growth | Rental Yield | Median Weekly Rent | |
| Houses | $700,000 | +7.5% | 4.0% | $527 |
| Units | $500,000 | +4.2% | 4.7% | $460 |
Cranbourne is one of Melbourne’s fastest-growing suburbs, with significant population growth driving increased housing demand. The suburb and its surrounding host multiple schools, a major shopping centre (Cranbourne Park Shopping Centre), and sports facilities (including the Cranbourne Racecourse and Casey Fields sporting complex). The suburban Cranbourne line was recently duplicated to increase service frequency, making commuting to the CBD and other major cities easier and faster. By road, Cranbourne connects via the South Gippsland Highway and is a short drive to the Monash Freeway, giving access to the city and other employment hubs in the southeast.
Cranbourne lies within commuting range of the Dandenong South industrial zone and has emerging business parks of its own. There are ongoing plans, such as the eventual extension of the rail line to Clyde and new road upgrades, that signal continued investment in this corridor. With continued expansion and solid returns, Cranbourne is likely to remain one of Melbourne’s best affordable investment suburbs for years to come.
Preston
| Median Price | Past 12-month Growth | Rental Yield | Median Weekly Rent | |
| Houses | $1,165,000 | +2.1% | 3.2% | $650 |
| Units | $555,000 | -7.4% | 5.0% | $530 |
Preston is another one of the high rental yield suburbs in Melbourne. The strong rental demand is driven by professionals, families, and students moving to the region. Located just 9 km north of the CBD, Preston is well connected to major cities via multiple train, tram, and bus routes. The suburb also benefits from its proximity to major employment hubs and universities.
There are many primary, high, and specialist schools, including Preston Primary School, Sacred Heart School, Preston High School, and The Pavilion School. The suburb is also home to La Trobe University Melbourne Campus and Melbourne Polytechnic TAFE, as well as major public hospitals like Austin Hospital and the Mercy Hospital for Women.
So, it’s no wonder property investors and owner-occupiers are flocking to these suburbs in Melbourne.
Whether you’re an experienced investor or just starting out, Property Buyers Australia can guide you every step of the way — from research and negotiation to purchase and settlement. Contact Property Buyers Australia today to explore the best investment opportunities across Melbourne’s thriving suburbs.
