Melbourne’s Rising Stars: Three suburbs set for future growth
The Melbourne property market is constantly changing, and buyers are always on the lookout for the next suburb hot spot! It’s one of the most common questions we get asked… Where should we buy for capital growth?
Now keep in mind when we’re looking at annual growth rates, we’re still recovering from the great COVID boom, and some areas (ahem - Toorak) have seen a drop in median house values by as much as 25% over the last 12 months!
We’re not looking for volatility in our property choices, slow and steady wins the race, we’ve handpicked three gems for you: Murrumbeena, Brunswick, and Chelsea. Let's look at what makes them so sought after…
Murrumbeena: The Quiet Achiever with Strong Fundamentals
Nestled in Melbourne’s southeast, Murrumbeena is a well-connected suburb offering a peaceful, community-focused lifestyle with excellent access to the CBD. While it may not always make headlines, this hidden gem consistently delivers solid returns and is becoming a main player for those looking to settle in the leafy streets of the southeast.
Median House Price: $1,637,500
Annual Growth (Houses): -0.2% over the past year
Properties Sold: 70 houses in the last 12 months
Average Days on Market: 48 days
Rental Yield: 2.9% (Median rent: $850 per week)
Despite a minor dip in growth, Murrumbeena’s low vacancy rates and ongoing buyer interest suggest a strong foundation for future price appreciation.
Brunswick: A Thriving Urban Hub
Brunswick continues to be a highly sought-after inner-city suburb, known for its vibrant café culture, arts scene, and excellent public transport links. The area attracts young professionals, renters, and investors alike, with steady growth in both the housing and unit markets.
Median Unit Price: $570,000
Annual Growth (Units): 2.1% over the past year
Properties Sold: 419 units in the last 12 months
Average Days on Market: 33 days
Rental Yield: 5.2% (Median rent: $525 per week)
Brunswick’s unit market is experiencing strong demand, with a seemingly insatiable amount of units being transacted, all within a short amount of time on market. Affordable pricing makes it an attractive option for first-home buyers and investors seeking high rental yields in a prime location.
Chelsea: A Coastal Suburb on the Rise
For those looking to invest in Melbourne’s thriving bayside market, Chelsea is proving to be a standout. Offering a laid-back beachside lifestyle while remaining within commuting distance to the city, it has become a popular choice for families and professionals alike.
Median House Price: $1,030,000
Annual Growth (Houses): -1.8% over the past year
Properties Sold: 87 houses in the last 12 months
Average Days on Market: 31 days
Rental Yield: 3.3% (Median rent: $675 per week)
With its family-friendly appeal, absolutely idyllic coastal setting, and constantly improving infrastructure, it remains one to watch for investors.
Each area offers unique benefits, catering to different demographics while demonstrating strong investment potential. Whether you are looking for steady long-term growth, high rental demand, or lifestyle appeal, these suburbs provide excellent opportunities.
As always, it’s essential to conduct your own research, assess market conditions, and seek professional advice before making any investment decisions. For more insights into Melbourne’s real estate trends, feel free to get in touch. We’re here to help you make informed property decisions!