What Are the Richest Suburbs in Melbourne?

Melbourne is well-known in Australia for its opulent lifestyle, stunning architecture, and cultural heritage. That being said, it's reasonable that you would want to know which Melbourne suburbs are the wealthiest.

Victoria is one of Australia's wealthiest states, and the city's skyrocketing property prices directly result from the state's booming economy. Unsurprisingly, this city has the most affluent areas regarding median home prices. With prices topping $80 million, these properties can be located on some of Melbourne's most posh streets.

This blog explores the suburbs in Melbourne that are the most costly and the elements that contribute to their status as the most expensive.

What Drives Property Value Growth In Melbourne?

 

Several growth drivers are primarily responsible for the strong demand in every area. Following is a list of some of the factors that drive growth:

Lifestyle Facilities

Many people are drawn to neighbourhoods in metropolitan settings well-known for their lively café culture, superb dining alternatives, and different entertainment places. These regions not only present lucrative chances for investment but also stand out as premium real estate destinations that are highly sought after and command the highest prices in the housing market. 

New Land Release

The success or failure of your real estate venture could be drastically affected by the launch of new land releases. Property prices might rise when there isn't enough new land available to satisfy demand, which happens when there isn't enough supply. 

When there is an excess of residential development approvals and new land releases, on the other hand, your investment property's growth potential is likely to be dampened. There may be less room for substantial long-term growth in property values if supply meets demand more quickly in the housing market. For this reason, it is essential to track land release trends so investors may make educated choices.  

Education-Medical Infrastructure

There is a big pool of teachers, students, medical professionals, and interns looking for housing that is within easy travel to their place of work or study. TAFE institutions, university campuses, and medical facilities have the potential to attract a large number of interested individuals. Spending on infrastructure typically positively impacts the surrounding areas, including the suburbs and areas within walking distance of two kilometres.

Leafy Suburbs And Beaches

Many of the Australian population is drawn to areas that offer breathtaking ocean views, beautiful sandy beaches, and scenic riverfront locations with picnic tables, barbeque pits, and plenty of room to fish and boat. The Central Coast and the Gold Coast, combined with peaceful surroundings and lively communities, are becoming popular retirement destinations as the country's population ages. The prospect of green, verdant streets and picturesque suburbs in the picturesque Blue Mountain sceneries even more entices those looking for a tranquil and picture-perfect retirement.

Government Spending And Council Gentrification

Government spending programmes on highways, airports, railways, cities, and towns that are prepared to invest in infrastructure and public facilities can revitalise and stimulate local economies.

As a result of increased investment in transportation infrastructure (new roads, trains, and airports), Blacktown and the surrounding suburbs of South Western Sydney have seen a tremendous uptick in home prices throughout the past several years. 

Improvements And Developments To Transportation

It's not easy to boost investment and employment everywhere, but building new roads and railways can help a region thrive in the long run. In general, newer roads and railways close to cities, seaports, and airports are most advantageous to businesses and industries since they increase efficiency and allow for the rapid transport of commodities. Previously stigmatised suburbs have much to gain, especially those near the central business district or with convenient access to employment hubs.  

The Most Expensive Suburbs In Melbourne

Property values in Melbourne did not fall as much as in other cities, but prices have also recovered quite as sharply as in Sydney and Brisbane.

Even though there are some potential headwinds, it is evident that Melbourne is currently in the recovery stage of the property cycle. Without a doubt, there are a great number of sub-markets in Melbourne. 

House prices in Melbourne have risen 3.3% year-over-year and 0.7% quarter-on-quarter, with a median price of $943,725 today. The current price of a unit is roughly $610,490, an increase of 0.2% from the previous quarter and 2.5% from the previous year.

You may be interested in the most exclusive Melbourne suburbs because you plan to sell your property there soon, or you may be curious about the city's wealthiest areas. 

Toorak

No one should be surprised to see Toorak, one of Melbourne's most exclusive and wealthy districts, at the top of the list once again, given its long-standing reputation for high property values. There is a variety of high-end real estate in Toorak, approximately 5km southeast of the central business district. Rent is $1,250/week on average, and the typical home price is a staggering $5.18 million. 

You might have come across the word Toorak while searching for the most prestigious real estate and wealthy areas in Melbourne. A staggering $80 million was the price at which the most costly house in Toorak was sold in 2021.

The area may be found five km southeast of the central business district. This location is home to some of the wealthiest neighbourhoods in the world precisely because of the opulent mansions that are located there.

Toorak has a median property price of $5.19 million, while the weekly rent is roughly $1,025. Regarding property pricing, Toorak is the suburb closest to Melbourne's central business district. 

This area has 245 houses and 204 apartments, and the average population is about 13,000. The average weekly rent for flats is $495, ranging from $959,000 to roughly that much. The most expensive home in this suburb was sold recently for $12,100,000. With $80 million in 2021, they remain undefeated.

East Melbourne

Being just 2km from the central business district, the wealthy suburb of East Melbourne offers all the amenities of city life with the extra benefit of parks and greenery. 

Unlike Toorak's new luxury houses, East Melbourne is renowned for its old terraces and apartments. Parliament House, the former Treasury Building, and the Melbourne Cricket Ground are all there. With a median home price of $3.65 million, it's a steal compared to Toorak. 

Kooyong

Kooyong, located not far from the noise and activity of Melbourne's CBD, is a symbol of understated affluence and refinement. With its lush tranquillity, sporting past, and closeness to the city's lively core, it offers a rare combination that makes it one of Melbourne's most expensive and distinguished suburbs.

The housing landscape of Kooyong is defined by grandeur. In areas like Kooyong Park, you may find enormous estates that cost more than $3 million. These homes are known for their architectural significance and expansive layouts.

Brighton

Brighton, Melbourne's fourth most expensive neighbourhood, is 11 kilometres from the city centre. Famous attractions include the area's beaches and mansions built throughout the Victorian and Gregorian periods. The average rent is $1,300/week, and the median home price is $3.09 million. 

Rent is around $650 weekly, while the typical unit price is nearly $1.10 million. Brighton was also one of the most expensive suburbs around that time. However, Toorak still holds that title. Brighton has a median home price of $3.24 million and an average rent of $1,200/week.

The average weekly rent for flats is $595, and the median price is $1.25 million. Eleven kilometres separate the central business district from Brighton. Famous Victorian and Gregorian-era beaches and mansions dot this area.

Bearing the name of the English beach town, it is the fourth most costly suburb of Melbourne. Young families can make their investments in Brighton's high-quality residences a source of wealth growth. 

Canterbury

The median home price in this eastern suburb is $3.19 million, located between Balwyn and Camberwell. What is so unique about it? Several of Melbourne's oldest schools are located there, and the area is also close to popular destinations, including Box Hill, Doncaster, and Chadstone. It is also home to several historic mansions.  

Canterbury, located around 10km east of Melbourne's busy central business district, radiates an aura of sophisticated wealth. Famous for its ancient mansions, exclusive schools, and verdant streets, this area is known as the "Toorak of the East" and is popular with people looking for a posh suburban sanctuary.

Houses with extensive landscaping and historic significance dominate Canterbury's real estate market, with prices regularly topping $3 million. The "Golden Mile," a stretch of luxurious mansions, is the gold standard regarding seclusion. 

Malvern

Malvern, around 10 kilometres southeast of the city centre, has housing prices similar to Balwyn's. The area offers a diverse range of property alternatives, with median home prices hovering about $3.0 million and median unit prices around $655,000. Houses rent for about $1,000 per week, and condos for about $480 per week, which is competitive. The many parks and green areas, picturesque boutique shopping districts, and landmark Victorian-era houses dot Malvern's landscape, giving the town its unique character and attracting many visitors and residents.

Middle Park

About three kilometres from the central business district, you'll find the bayside community of Middle Park. Property prices have risen due to development constraints in the region. Middle Park stands head and shoulders above the others among the bayside suburbs. The package includes open areas, boutique shops, ancient homes, and verdant gardens.

Middle Park is home to several excellent investment properties on the real estate market. Nevertheless, consulting a seasoned investor for strategic property counsel or adhering to a financially suited strategy while managing properties would be wise. 

House prices fell 2.9%, and unit prices fell 36.3% in the last year, according to the median prices. On the other hand, a median home price of $2.80 million and a median condo price of $755,000,000,000 are very comparable. Home rentals in this posh neighbourhood go for $875 per week on average, and apartments for $455 per week. Houses and units in the area have become more expensive due to development limitations.

Balwyn

Balwyn is a picturesque suburb about ten kilometres east of Melbourne's lively central business district, and it's right next door to Canterbury. Its name, which comes from the Gaelic bal and the Saxon wyn, means "the home of the vine," which aptly describes this lush and beautiful place. Balwyn is one of the most sought-after places to live in Melbourne due to its picturesque setting, verdant streets, and abundant greenery. Balwyn's real estate market's exclusive and highly sought-after status is evident in the asking prices of homes in the area, which average around $2.89 million.

Kew

Another suburb that offers easy access to the central business district via tramline is Kew, which is around five to six km east of the city.

A house may be purchased for approximately $2.74 million, while a unit can be purchased for $800,444. This is comparable to the price of a property in Camberwell. However, renting is a tad more expensive than buying, with houses costing $950 per week and apartments costing $525 per week.

How Much May The Price Of A Home In Melbourne Increase In 2024?

House prices in Melbourne did not do as well as in 2023, and the gap between the values of homes in Melbourne and those in Sydney is bigger than it has been for a considerable amount of time.

This is even though Melbourne has received the highest proportion of outsiders over the past year, which has resulted in a considerable shortage of available real estate. 

The prices of properties in Melbourne could increase by at least five per cent between now and 2024. This is because apartments and houses in Melbourne have an inherent value that cannot be replaced at the current market value.

It should be noted that this is merely an average and that certain areas will fare significantly better than others, particularly the gentrifying suburbs located in Melbourne's middle ring.

Investors in real estate are gradually making their way back into the Melbourne market, and as mortgage rates begin to decline, home buyers will be encouraged to make their purchases.

Concurrently, the lack of available rental houses and apartments in Melbourne is anticipated to cause rents to rise in 2024. 

Conclusion

Some of Australia's wealthiest suburbs are in Melbourne, which is known for its luxurious lifestyle, beautiful building, and rich cultural history. Victoria is one of the richest states in Australia. Its booming economy is the reason why property prices are going through the roof. Toorak, where the typical home price is $5.19 million and the average weekly rent is $1,025, is one of the wealthiest areas of Melbourne. Some of the wealthiest neighbourhoods in the world are in Toorak. In 2021, the most expensive house there went for $80 million.

Just 2 km from the central business area, East Melbourne has all the conveniences of city life plus parks and green spaces. People know it for its old terraces and flats, like Parliament House, the Melbourne Cricket Ground, and the building that used to be the Treasury. It's a good deal to live in East Melbourne instead of Toorak, where homes cost an average of $3.65 million.

Lifestyle facilities, new land releases, education and medical infrastructure, leafy suburbs and beaches, government spending and council gentrification, and improvements and changes to transportation are some of the things that cause property prices to rise in Melbourne. The typical price of a home in Melbourne has gone up by $943,725 since last year.

In short, Toorak, East Melbourne, and other high-class places are some of Melbourne's most expensive suburbs. There are a lot of high-end housing choices in these areas, and homes there are expensive.

Near Melbourne's central business district (CBD), Kooyong is a sign of quiet wealth and sophistication. It has very nice homes, with mansions that cost more than $3 million. Brighton is known for its beaches and houses from the Victorian and Gregorian eras. It is Melbourne's fourth most expensive neighbourhood. Canterbury, which is known as the "Toorak of the East," has beautiful streets, old houses, and private schools.

The median home price in Malvern, which is 10 kilometres southeast of the city centre, is about $3.0 million, and the median unit price is about $655,000. Due to limited space for growth, property prices in Middle Park, which is three kilometres from the central business area, have gone up. The beautiful neighbourhood of Balwyn is known for its green streets and lots of trees.

In Kew, another neighbourhood with easy tram access to the CBD, houses and units are available for about $2.74 million and $800,444, respectively. Houses cost $950 per week, and flats cost $525 per week, so renting is a bit more expensive than buying.

The difference in house prices between Melbourne and Sydney is bigger than it has been for a long time, and prices in Melbourne did not do as well as they did in 2023. Because of how much homes and houses in Melbourne are worth, prices could go up by at least five per cent between now and 2024. When borrowing rates go down, people will be more likely to buy homes, which will cause rents to go up in 2024.

Content Summary

• Melbourne is celebrated for its luxurious lifestyle, architectural beauty, and rich cultural heritage.
• The city boasts some of Australia's wealthiest suburbs, with property prices reaching up to $80 million.
• Property growth in Melbourne is driven by lifestyle facilities, new land releases, and educational-medical infrastructure.
• Leafy suburbs and beachfront locations are highly sought after for their natural beauty and recreational opportunities.
• Government and council investments in gentrification and infrastructure contribute to the desirability of certain areas.
• Transportation improvements play a crucial role in enhancing the appeal and value of suburbs.
• Toorak is Melbourne's most prestigious suburb, with a median home price of $5.18 million and rent averaging $1,250/week.
• East Melbourne, known for its historical terraces and proximity to the CBD, has a median home price of $3.65 million.
• Kooyong offers a blend of tranquillity and luxury, with properties exceeding $3 million.
• Brighton, famous for its beaches and period mansions, has a median home price of $3.09 million and rents around $1,300/week.
• Canterbury, located between Balwyn and Camberwell, boasts a median home price of $3.19 million and hosts several of Melbourne's oldest schools.
• Malvern, approximately 10 km southeast of Melbourne, offers a mix of property types with a median home price of around $3.0 million.
• Middle Park, a bayside suburb, is notable for its development constraints and has a median home price of $2.80 million.
• Balwyn, known as "the home of the vine," is a lush suburb with an average home price of $2.89 million.
• Kew, close to the CBD, features properties with a median price of $2.74 million.
• Melbourne's property market is in a recovery phase, with house prices rising 3.3% year-over-year.
• The median price for a house in Melbourne is currently $943,725, while units are priced at about $610,490.
• Factors like lifestyle facilities and proximity to amenities significantly impact the market value of properties in Melbourne.
• The availability of new land for development can influence property prices and growth potential.
• The presence of educational and medical institutions nearby boosts demand for housing in certain suburbs.
• Government spending on infrastructure and public facilities can revitalise local economies and property markets.
• Transportation upgrades, including new roads and railways, enhance the value of nearby properties.
• Toorak's high-end real estate market and prestigious status make it a symbol of wealth in Melbourne.
• East Melbourne combines city convenience with the charm of parks and green spaces.
• Kooyong's understated elegance and sporting heritage contribute to its high property values.
• Brighton's coastal lifestyle and historical architecture attract affluent residents.
• Canterbury's exclusive schools and historic mansions make it a desirable location for wealthy families.
• Malvern's boutique shopping districts and Victorian-era homes add to its appeal.
• Middle Park's scarcity of development opportunities drives up property prices.
• Balwyn's picturesque setting and abundant greenery make it a sought-after suburb.
• Kew's accessibility and high-quality housing options appeal to a wide range of buyers.
• Melbourne's property market is expected to grow, with a predicted increase of at least 5% by 2024.
• The influx of migrants and a shortage of real estate contribute to Melbourne's rising property prices.
• Gentrifying suburbs in Melbourne's middle ring are likely to see significant growth.
• The return of real estate investors and decreasing mortgage rates are stimulating the Melbourne market.
• A shortage of rental properties is anticipated to drive up rents in 2024.
• Melbourne's wealthy suburbs offer a variety of lifestyles, from coastal living to leafy, tranquil retreats.
• The city's rich cultural and architectural heritage adds to the allure of its most expensive suburbs.
• Strategic investments in transportation and infrastructure are key to enhancing property values.
• Government policies and local council efforts in gentrification play a role in the development of affluent suburbs.
• The demand for housing in Melbourne is shaped by a combination of natural beauty, lifestyle amenities, and accessibility.
• The prestige of living in Melbourne's wealthiest suburbs is often accompanied by high property prices and living costs.
• The appeal of Melbourne's affluent suburbs extends beyond Australia, attracting international buyers and investors.
• The diversity of Melbourne's luxury real estate market caters to a range of preferences and needs.
• The city's booming economy directly influences the skyrocketing property prices in its most affluent areas.
• Melbourne's reputation as a centre of opulence is reflected in the exclusive and wealthy districts scattered throughout the city.
• The unique characteristics of each wealthy suburb in Melbourne contribute to its status and desirability.
• The continuous growth of Melbourne's property market highlights the city's appeal to affluent buyers.
• The interplay of cultural, architectural, and natural elements makes Melbourne's wealthiest suburbs coveted places to live.
• Melbourne's status as one of Australia's wealthiest states is underscored by the high property prices in its most affluent suburbs.