As Melbourne’s property market continues its strong post-COVID performance, investors are keeping a keen eye on the inner east and bayside suburbs. These established, affluent neighbourhoods offer a compelling mix of lifestyle amenities, strong infrastructure, and an appealing range of housing stock – an ideal combination to drive capital growth and rental yields, making these areas lucrative hotspots for savvy investors to consider in 2024. Let’s explore some of the standout suburbs currently presenting attractive investment opportunities:
Elsternwick
(City of Glen Eira)
Elsternwick has quickly become one of Melbourne’s most in-demand inner city suburbs. This dynamic village offers a vibrant lifestyle with its thriving Glenhuntly Road shopping precinct, the sprawling Elsternwick Park, and highly regarded schools like Wesley College nearby. While located just 9km from the CBD, it provides an affordable alternative to similar suburbs closer to the city centre. But with limited new housing supply, high demand from keen buyers keeps pushing up real estate prices and driving competition in this highly coveted neighbourhood.
Caulfield
(City of Glen Eira)
Long regarded as one of Melbourne’s most desirable postcodes, Caulfield’s property market shows no signs of slowing down. The suburb benefits from a diverse array of shopping and dining precincts, abundant recreational facilities like parks and sports clubs, elite educational institutions, and multiple public transport options including trains, trams, and buses. Its central, convenient location around 10km southeast of the CBD is a major selling point, and with its well-established reputation and local amenities, Caulfield remains a sought-after address, propelling resilient property values.
Surrey Hills
(City of Boroondara)
Embodying the prestige of Melbourne’s desirable inner east, Surrey Hills has rapidly emerged as a prime address for families and professionals. This suburb has proven highly popular in recent years, drawing buyers with its picture-perfect streetscapes, abundant quality housing stock, and proximity to lifestyle hubs like the charming Maling Road Village and vibrant Camberwell Junction. Strong buyer demand shows no signs of waning, driven by the area’s easy access to esteemed private schools, verdant parks and recreation areas, coupled with a short commute to the CBD. Surrey Hills ticks every box for those seeking a prestigious yet family-friendly environment in a tightly held pocket.
Sandringham
(City of Bayside)
One of Melbourne’s most desirable bayside suburbs, Sandringham combines an enviable beachside location with a dynamic village atmosphere and exceptional amenities. Shopping strips like Melrose Street and Bay Road offer an array of boutiques, cafes, and restaurants, while the area also features recreational drawcards like the Sandringham Golf Course and numerous beach parks. Sandringham’s housing market has remained robust even through recent property cycles, upheld by persistently strong buyer demand from families and professionals seeking a beachside lifestyle. Limited development opportunities due to geographical constraints mean existing properties in the tightly-held suburb carry an extremely high scarcity value, driving up prices.
Brighton
(City of Bayside)
An iconic bayside suburb, Brighton’s median house price reflects its prestigious blue-chip status. Home to some of Melbourne’s most desirable real estate, the area offers residents a coveted beachside lifestyle coupled with easy access to the CBD and a wealth of amenities. Shopping villages like Church Street and Bay Street provide upscale retail and dining experiences, while elite schools such as Brighton Grammar and recreational facilities such as the renowned Brighton Beach and iconic Brighton Baths cater to residents’ every need. Low housing stock due to the suburb’s exclusive locales ensure resale values for existing homes remain sky-high amidst intense demand.
Beaumaris
(City of Bayside)
Situated around 20km southeast of the CBD, this bayside locale offers relative value compared to other prestigious neighbouring suburbs like Brighton and Sandringham. Beaumaris is renowned for its quality housing stock, direct access to beaches like Ricketts Point, and abundant open green spaces such as Donald MacDonald Reserve and Cheltenham Park. Family-friendly amenities including highly regarded schools, sporting clubs, and the lively Beaumaris Concourse shopping village make it an attractive option. Despite its slightly lower entry price point, the area is still tightly held with strong ongoing demand from buyers seeking that quintessential bayside lifestyle at a more affordable price point relative to surrounding blue-chip locales.
Hampton
(City of Bayside)
Another coveted bayside suburb, Hampton delivers an idyllic beachside lifestyle around 14km from the CBD. Its vibrant Hampton Street retail village strip offers a range of boutiques, cafes, and restaurants, while recreational offerings like the prestigious Royal Melbourne Golf Club and numerous beach parks provide ample leisure activities. Hampton’s quality housing stock across its leafy streets is a major lure for families and investors alike. Buyer demand sustained by the suburb’s enviable amenities and lifestyle have helped drive solid capital growth in property values over the long term. Hampton encapsulates the dream of luxury bayside living within easy reach of Melbourne.
McKinnon
(City of Glen Eira)
This underrated suburb offers excellent value for its inner urban location around 12km southeast of the CBD. McKinnon provides easy access to renowned educational facilities like McKinnon Secondary College and Monash University (Caulfield campus), popular shopping precincts including McKinnon Village, Ormond, and Bentleigh, and expansive open spaces such as Wattle Park and Duncan Mackinnon Reserve. The area’s family-friendly credentials are further enhanced by a range of sporting clubs and community amenities. With its relatively affordable entry price point compared to neighbouring suburbs coupled with high liveability factors, McKinnon is driving consistently strong buyer demand as an appealing option for those seeking inner city convenience without the exorbitant price tags.
Ormond
(City of Glen Eira)
Bordering McKinnon, Ormond exhibits similar investment credentials including its well-priced housing relative to surrounding areas. The suburb’s village atmosphere is exemplified by its amenities like the popular North Road retail strip with its cafes and shops, the weekly Piccadilly Market, and the tranquil E.E Gunn Reserve. Easy CBD access via Ormond Station on the Frankston line is another major plus, while respected schools such as Kilvington Grammar School and St Kevin’s Primary School add to the suburb’s family-friendly appeal. The combination of lifestyle amenities, relative affordability and convenience factors continue to support strong buyer demand in Ormond, making it an attractive option for investors and home buyers alike.
What Makes a Smart Investment Suburb?
While median prices offer a useful snapshot, savvy investors understand that a combination of factors drive long-term capital growth. They focus on areas exhibiting a compelling mix of amenities, desirable housing stock, geographical or policy-based development constraints, and local economic fundamentals and infrastructure. The above suburbs tick many of those boxes, offering lifestyle appeal, quality properties, and economic resilience that support their long-term investment prospects.
However, every investor’s circumstances and goals are unique. Conducting thorough due diligence tailored to individual objectives is always advisable. This is where engaging the services of a professional buyers advocate like LP Advisory can make all the difference. With our deep market knowledge, extensive networks, and proven negotiation skills, we can provide strategic guidance to help clients navigate the complex property market and achieve their wealth-building aspirations through astute property acquisition. Whether it’s identifying lucrative opportunities, avoiding costly pitfalls, or securing properties at the best possible price, LP Advisory can offer expert advice and support to optimise your investment outcomes.
*Median house prices as of early 2024 based on data from reiv.com.au
