10 most affordable suburbs in Melbourne for property investment in 2024

Looking for a wallet-friendly home or investment property in Melbourne? 

Affordability is definitely a hot topic, especially in the wake of the pandemic when property values rose sharply. The current interest rate environment and cost of living crisis have further impacted the affordability of property, and Melbourne is no exception.

In terms of the criteria for affordability in Melbourne, we are using the median dwelling price which is currently $781,949 (Aug, ‘24). This is the fourth most expensive median value of all the state capitals, with Sydney ($1,174,867), Brisbane ($873,987) and Canberra ($870,910) dearer. In terms of the type of property, according to CoreLogic data the current median value of houses in metro Melbourne is $944,138, while the unit median is $610,300. 

With these price points in mind, we set out to uncover a range of suburbs across metro Melbourne, where property prices are below or close to those median values.

If you're after affordable housing and like the sound of living on the city fringe Melton is worth a look. With median house prices of $478,000 for houses and $379,000 for units, the suburb is one of the most wallet-friendly postcodes in metro Melbourne. This well-serviced suburb boasts its own railway station, and the 35 kilometres is a quick train trip to/from the CBD. convenient proximity to the airport, and a range of reputable schools.

If you are after rental income, houses have weekly asking rents of $390, with an annual rental yield of 4.3 per cent. Units rent for $350 per week, offering a rental yield of 4.9 per cent.

Yes, we realise that the median house price in inner-city Carlton is a not inconsiderable $1,425,000, but we wanted to highlight the investment potential of units there. A median of $390,000 is definitely attractive, especially when you consider a rental yield of 7.3 per cent, with asking rents in the region of $550 per week. You will have to pay more for a two-bedder - which have a median of $596,500, and even more for a 3-bed unit at $945,000. Carlton is close to the CBD, universities, and a variety of amenities like shops, restaurants, and entertainment options.

If you are looking at Melbourne’s western suburbs, Point Cook should be on your radar with a median house price that is bang on our ‘affordable’ target. At a median of $530,000, units here are priced well below the metro median, with a respectable rental yield of 4.7 per cent. Besides being self-contained with many local amenities, there is a variety of houses, townhouses and apartments to choose from. It is also close to the water, has good transport links and is a lot cheaper than neighbouring Werribee South. 

Want to have easy access to the city, but still in a family-friendly environment? Close to Point Cook in the western suburbs, Hoppers Crossing could be the perfect environment for families and established couples. Situated just 23 kilometres from the heart of Melbourne, Hoppers Crossing provides convenient access to the city's amenities while maintaining its suburban charm. Currently, the median house price is $620,000, while the median unit price is $445,000. Houses in the suburb typically rent for $450 per week, generating an annual rental yield of 4 per cent. Expect units to fetch an average weekly rent of $420, offering a rental yield of 4.9 per cent. 

If you want to be far away from the big smoke, the suburb of Mickelham - 29km north of the CBD - ticks a lot of boxes. First up, the median house price here is $300k cheaper than the city-wide figure. This postcode is down -0.3% per cent over the past year, so you could buy the dip. As a new development, it is self-contained, with plans for amenities like schools, child care, a business park and a new city centre. Just don’t expect to buy a unit here - there are none!

Once upon a time, Craigieburn was on Melbourne's rural fringe, but today it is a thriving suburb with affordable housing options. Housing developments dominate here, with lots of green space and sports facilities on your doorstep. Currently, units in Craigieburn have a median price of $415,500 and rent for $420 per week with a rental yield of 5.3 per cent, while houses have a median price of $641,000, rent for $500 per week and yield 4.3 per cent.

If you are a first-time investor or investing on a budget, Dandenong in Melbourne’s southeast should be on your radar. Why? With houses priced anywhere from $515,000 for a 2 bedder, and $700,000 for a three-bedder, affordability is the obvious drawcard. This is a vibrant, multicultural suburb with shops, restaurants, schools, and recreational facilities.

Dandenong is also undergoing significant infrastructure development, with improved public transport, new retail precincts, and upgraded sporting facilities all happening. You can expect weekly rent of $480 from a house, with an annual rental yield of 3.8 per cent. Units, on the other hand, rent for approximately $400 per week, offering an attractive rental yield of 5.2 per cent.

Eumemmerring is another relatively affordable suburb in the city’s southeast belt, with easy access to Melbourne’s CBD via road and rail, making it an easy and convenient commute. Median property prices for houses here are $628,500 for houses and $580,000 for units. The suburb is experiencing solid population growth, which will increase demand for rental properties. Houses rent out for $480 per week, with an annual rental yield of 4.1 per cent, while units rent for $420 per week with an annual rental yield of 4.9 per cent. 

With median house and unit prices below the Melbourne metro average, Carrum Downs on the Mornington Peninsula has a lot going for it. Besides a family-friendly atmosphere and a range of schools, parks, and recreational facilities, you also have the beach and all the Peninsula has to offer. Median property prices are both under our metro median, with houses at $690,000 and $550,000 for units. If you are after rental income Carrum Downs has rental yields comparable to the Melbourne metro average, with asking rents for houses around $532 per week with an annual rental yield of 4.3 per cent. Units rent for $470 per week with an expected rental yield of 4.6 per cent. 

Thomastown in Melbourne’s north is an emerging lifestyle hub, with a growing number of cafes, restaurants, and cultural attractions. It is also undergoing significant infrastructure development, including improved public transport and new retail centres, which will further enhance its appeal. Median property prices over the last year range from $707,000 for houses to $492,500 for units. If you are interested in an investment property, asking rents for houses in the suburb are $482 per week with an annual rental yield of 3.7 per cent. If you are after a unit asking rents are $430 per week with an annual rental yield of 4.8 per cent.

Frequently asked questions about affordable suburbs in Melbourne