As we move into 2025, Melbourne’s property market is showing signs of steady recovery. With improving buyer sentiment, a forecasted rise in property prices, and a strong economy, it’s an exciting time for homebuyers looking for their perfect home. If you’re searching for a suburb with great potential that balances proximity to Melbourne’s high-demand areas and offers an attractive price point, these suburbs should be on your radar.
Current Market Conditions & Outlook for 2025
Melbourne’s property market is entering 2025 with a positive outlook. According to KPMG’s Residential Property Market Outlook for 2025, house prices in Melbourne are expected to rise by 3.5%, and unit prices are projected to increase by 4.7%. This rise is driven by an improving economy, easing interest rates, and a steady increase in buyer demand.
As Melbourne recovers from the previous market downturn, we are seeing increasing interest in both established suburbs and those just outside Melbourne’s premium areas. For homebuyers, this presents a unique opportunity to secure a property that combines affordability with proximity to desirable locations.
Top Suburbs to Watch in 2025
Here are some of Melbourne’s top homebuying hotspots in 2025, focusing on suburbs that offer excellent value while being close to some of the city’s most exclusive areas.
1. Malvern
Why It’s Hot: Malvern is one of Melbourne’s most prestigious suburbs, known for its leafy streets, period homes, and proximity to top-tier schools. It’s often considered a more affordable alternative to the ultra-exclusive Toorak, offering similar family-friendly appeal and easy access to amenities. With excellent public transport and close proximity to boutique shopping and fine dining, Malvern continues to be a hotspot for families and professionals alike.
2. Glen Iris
Why It’s Hot: Glen Iris offers a fantastic mix of spacious family homes and modern apartments, making it an ideal choice for those seeking proximity to both the city and elite schooling options. It’s a more affordable option compared to its neighbouring suburbs like Toorak and Armadale, but still provides a similar lifestyle with parks, cafés, and shopping strips. The steady demand for properties in Glen Iris ensures it’s an area set for continued growth in 2025.
3. Ascot Vale
Why It’s Hot: Ascot Vale is rapidly becoming one of the go-to suburbs for homebuyers seeking a mix of affordability and convenience. Nestled between Flemington and Moonee Ponds, Ascot Vale is a vibrant, well-connected suburb with a blend of period homes and modern townhouses. Its proximity to Melbourne’s central business district and major amenities makes it an attractive option for first-time buyers and families looking for value.
4. Hawthorn East
Why It’s Hot: Hawthorn East offers the charm of inner-city living with a more laid-back, suburban feel. It’s an excellent choice for homebuyers looking for access to the prestigious amenities of Hawthorn and Camberwell but at a more affordable price point. With large homes, green spaces, and highly regarded schools, Hawthorn East appeals to families who want to live in a well-connected, peaceful environment without compromising on location.
5. Brunswick East
Why It’s Hot: Brunswick East offers a vibrant and eclectic lifestyle with its café culture, parks, and close proximity to the city. With a median house price just under $2M, it is a fantastic option for buyers who want to be close to the heart of Melbourne’s cultural scene but at a more affordable price. The suburb is also seeing growth in development, making it a good investment for long-term capital gain.
6. Northcote
Why It’s Hot: Northcote has seen significant gentrification in recent years, transforming from an industrial area to a trendy, family-friendly suburb. It boasts excellent transport links, cafes, and parks, and is just a short distance from the CBD. With a wide range of property types, including period homes and modern townhouses, Northcote is attracting homebuyers looking for a suburb with character and strong growth prospects.
Why These Suburbs Are Ideal for Homebuyers in 2025
These six suburbs offer homebuyers a fantastic balance between affordability and proximity to some of Melbourne’s most exclusive areas. Whether you’re looking for a family-friendly environment with easy access to Melbourne’s best schools, a suburb that offers excellent lifestyle options, or a location with significant future growth potential, these hotspots provide a variety of choices to suit different needs and budgets.
As Melbourne’s market improves in 2025, these suburbs are expected to continue growing, offering both strong lifestyle appeal and capital growth opportunities for buyers.
Looking for Guidance? Let’s Help You Find Your Dream Home
At LP Advisory, we specialise in helping homebuyers navigate Melbourne’s property market, ensuring you make an informed decision. Whether you’re looking to buy your first home, upgrade to a larger property, or find a great family-friendly suburb, our expert buyer’s agents are here to guide you every step of the way.
