The ultra-cool city of Melbourne is currently facing a state of flux. Whilst some suburbs are seeing prices skyrocket others are cooling down, and if you're house hunting it can feel like an endless maze just trying to work out if your dream house is the steal of the century or a huge rip off.
But don't worry because we've done the homework for you. So grab your flat white, get comfy, and let's break down exactly what's happening across Melbourne's suburbs.
Melbourne Suburbs Where House Prices Are Rising
Now, you may want to be seated for this one because seven Melbourne suburbs have seen house prices rise by over a whopping 10% since 2024. That’s right, 10%! According to Domain, Moorabbin, Caulfield South, Fairfield, Mentone, Clayton South, Albion, and Preston are all seeing a rise due to their growing infrastructure and family-friendly atmosphere. In fact, Moorabbin houses have risen by a staggering 25.9%, with the median house price now $750,000.
| Suburb | Median House Price | Annual Percentage % |
|---|---|---|
| Moorabbin | $750,000 | 25.90% |
| Caulfield South | $799,000 | 25.30% |
| Fairfield | $587,000 | 20.10% |
| Mentone | $640,000 | 15.90% |
| Clayton South | $515,000 | 12.00% |
| Albion | $281,000 | 11.70% |
| Preston | $570,000 | 10.40% |
So what's driving all this growth? According to Dr. Nicola Powell from Domain, it's all about timing. Families are rushing to buy before the Reserve Bank makes more interest rate cuts, knowing that when rates drop, competition heats up and prices climb even higher.
“An area like Fairfield, it is an inner-north pocket that is undervalued, and it is now catching up,” Powell explains.
As for Moorabbin? Kevin Chokshi from Ray White Cheltenham points to infrastructure, or more specifically, the Suburban Rail Loop. Better transport links, good schools, and a location that's still relatively untapped mean young families are snapping up properties before everyone else catches on.
The Suburban Rail Loop has got something to do with it; more infrastructure coming to the area has been playing a role,” Chokshi said. “There’s a good private school… The area is untapped for what it is.
“A lot of young couples and young families [are buying into Moorabbin], especially if they’re missing out on some of the surrounding areas.”
Melbourne Suburbs Where House Prices Are Declining
Now, before you panic about being priced out of Melbourne entirely, here's some good news. Several suburbs have actually seen prices decline over the past five years, and we're not just talking by a few percent. According to Real Estate, house prices in Cranbourne South, Parkville, and even South Melbourne have all dropped in price.
| Suburb | Median House Price | Decrease Over the Past Five Years |
|---|---|---|
| Cranbourne South | $790,000 | -22.20% |
| Balaclava | $1.3025m | -10.80% |
| Parkville | $1.82m | -7.50% |
| Kensington | $1.018m | -5.90% |
| Armadale | $2.45m | -5.80% |
| Windsor | $1.315m | -5.40% |
| Elsternwick | $1.826m | -5.10% |
| Cremorne | $1.25m | -3.10% |
| South Melbourne | $1.423m | -3% |
| Middle Park | $2.55m | -3% |
Just like us, you’re probably surprised by some of this data, particularly because places like Cranbourne South have completely shed their old reputation and transformed into a sweet-spot location between the bustling city and rural charm. With its glowing transformation, Cranbourne South has been growing in popularity, with reviews across Homely and Reddit, making the price drop even more of a secret steal -
“Cranbourne South is a peaceful rural residential area, but still close to suburban facilities,” one reviewer wrote. “There are walking and equestrian trails close by, a golf and country club within walking distance, a local pony club and riders' club, and the area is frequented by native birdlife.”
However, Melbourne house hunters have been warned that the decline in places such as Armadale and Middle Park might not last forever. PropTrack's Senior Economist, Angus Moore, reckons Melbourne's property market is firming up, which means getting in quick could make all the difference.
“This is a real change from the past few years, since the RBA started raising rates, where home prices were tracking sideways or falling,” Moore states.
If You’re Planning on a Melbourne Move
Whether you're heading to a booming suburb or getting yourself a bargain in a decreasing market, there's one thing you definitely shouldn't tackle alone: the actual move itself. Packing up your entire life, wrestling furniture down narrow staircases, navigating Melbourne traffic with a loaded van…that’s a headache no one needs.
This is where professional removalists come into play. So, if you want people who actually know Melbourne's suburbs like the back of their hand, Holloway Removals has you covered. They'll get your stuff from Point A to Point B without the stress, the sweat, or the "how did we accumulate this much stuff?" meltdown.
Because let's face it - just working out what area to buy in is stressful enough, let alone having to become a professional furniture mover overnight.
