Melbourne’s property market is showing exciting potential for investors in 2025. Several Local Government Areas (LGAs) in Melbourne are receiving attention for their combination of affordability, infrastructure investment, and population growth. These regions offer investors a balanced approach to long-term growth, strong rental yields, and diverse investment opportunities, but they are just a few of the solid choices available in Melbourne’s evolving property landscape.
Key LGAs to Watch in 2025
Based on current trends and future growth projections, these are some LGAs to watch in Melbourne in 2025.
Monash LGA
Monash is one of the top-performing LGAs in Melbourne. With its strong educational and healthcare sectors, along with growing infrastructure investments, areas within Monash, such as Glen Waverley and Clayton, are becoming hotspots. The demand for properties is expected to remain high, making this LGA a prime area for both owner-occupiers and investors.
Frankston LGA
Frankston has long been known for its beautiful coastal location, but it’s now becoming a strong performer in the property market as well. Areas like Seaford and Frankston South have seen significant improvements in infrastructure, including new transport links and the development of the Frankston Hospital. These developments, alongside Frankston’s relatively affordable prices, make it an attractive option for long-term capital growth.
Whittlesea LGA
Whittlesea, which encompasses growing suburbs such as South Morang and Epping, is experiencing rapid growth due to its affordability and excellent transport links to Melbourne’s CBD. The LGA is becoming a key destination for young families and first-time buyers. As new developments continue, these areas are expected to see rising property values.
What’s Driving the Appeal?
Infrastructure Development Across these LGAs, significant investment in infrastructure—like new transport links, healthcare facilities, and educational institutions—is driving demand for property. As these areas continue to develop, it’s expected that property values will rise, making them a solid choice for long-term growth.
Population Growth
Melbourne’s continued population growth, especially from interstate migration, is putting additional pressure on housing demand in LGAs like Monash, Frankston, and Whittlesea. The demand for housing in these areas is set to increase, contributing to the potential for future price growth.
Affordability and Value
Compared to other parts of Melbourne, the price points in these LGAs offer better value. While some areas have seen price adjustments in recent years, these LGAs remain relatively affordable compared to more expensive regions, making them ideal for buyers and investors looking for growth potential before prices rise further.
Market Context: What’s Happening Right Now
Looking ahead into 2025, Melbourne’s property market is showing signs of recovery. Interest rate cuts, along with easing inflationary pressures, have set the stage for a buyer’s market, with prices in Melbourne expected to stabilise and even begin rising by the end of the year.
Why It’s a Great Time to Buy in Melbourne
With the capital’s median home values having fallen by 6.9% since March 2022, many parts of Melbourne, including these key LGAs, have become more affordable, giving buyers an advantage before prices start to rise again. This is particularly appealing for long-term investors looking to secure properties at a better value before the market picks up.
According to KPMG, Melbourne is forecast to see house prices rise by 3.5% and unit prices by 4.7% in 2025, with even stronger growth predicted in 2026. Now is the perfect time to consider buying before the market starts gaining momentum.
Risk and Due Diligence
While these areas show great promise, it’s important to remember that property investment always carries risks. Suburbs within each LGA may perform differently depending on various factors like local amenities, infrastructure, and market demand. Always conduct thorough research and due diligence before making a purchase.
At LP Advisory, we help guide you through this process. Our expertise in identifying high-potential investment opportunities can help you secure the best deals in Melbourne’s evolving market.
Why LP Advisory?
At LP Advisory, we specialise in helping buyers and investors navigate Melbourne’s dynamic property market. Whether you’re after capital growth, strong rental returns, or simply want to make a solid investment, we have the local expertise to guide you. Our team is dedicated to ensuring you make informed, confident decisions, and we’ll be there every step of the way—through research, negotiations, and property selection.
