Melbourne’s property market remains significantly more affordable than other major capitals, but savvy buyers can still uncover even more hidden value if they know where to look.

Melbourne property prices have grown by 14.9 per cent over the past five years, lifting the city's median property price to around $827,000, according to Cotality data. The relative underperformance of the Victorian capital since Covid continues to provide great opportunities for buyers. 

SQM Research's Louis Christopher said that "the Melbourne housing market is somewhat in

a state of balance, shifting from prior weakness as demand picks up," adding that "our forecast is for price rises of 4-7 per cent and a modestly easing rental market for the city in 2026," so we could see prices climb once again this year. 

If you’re hunting for Melbourne’s cheapest suburbs, whether it’s for a house or apartment, this rundown will show you where to look for top value in 2026.

Top 10 cheapest suburbs to buy a house in Melbourne

These are the top 10 cheapest suburbs in Melbourne to buy a house.

Top 10 cheapest suburbs to buy a unit in Melbourne

Below are the top 10 cheapest suburbs in Melbourne to buy a unit/apartment.

A closer look at the top 5 cheapest suburbs to buy a house in Melbourne

Melbourne’s property market currently offers significant opportunities for buyers looking to enter the market at a lower price point, particularly in the western and northern growth corridors. While the inner city remains premium, these outer pockets provide established infrastructure and substantial long-term value.

1.   Melton, 2752

• Median Sale Price: $510,000
• Annual Growth: +8.5%
• 5-Year Growth: +30.8%

Located 35 kilometres west of the CBD, Melton remains the most affordable entry point for houses in Greater Melbourne with a median sale price of $510,000. The suburb has seen consistent demand, recording 8.5 per cent growth over the last 12 months and a significant 30.8 per cent increase over the past five years. As a major regional hub, it offers comprehensive amenities including the Woodgrove Shopping Centre, multiple schools, and a dedicated railway station. Its appeal lies in its self-contained nature, making it popular with young families and investors attracted by a solid 4.2 per cent rental yield.

2.   Kurunjang, 3337

• Median Sale Price: $561,500
• Annual Growth: +8.0%
• 5-Year Growth: +27.0%

Positioned just north of the Melton township, Kurunjang offers a quieter, semi-rural residential atmosphere while remaining highly accessible. The median house price sits at $561,500, supported by a healthy 8 per cent annual growth rate. Over a five-year horizon, property values have climbed 27 per cent, reflecting the area's steady transition from a fringe pocket to an established family community. The suburb is characterised by larger allotments and parklands, such as the Kurunjang Recreation Reserve, making it an ideal choice for buyers seeking space without the price tag of more central western suburbs.

3.   Dallas, 3047

• Median Sale Price: $580,000
• Annual Growth: +6.9%
• 5-Year Growth: +25.8%

Dallas represents the most affordable option in Melbourne's northern corridor, with a median house price of $580,000. This established suburb has experienced a 6.9 per cent rise in values over the past year and a 25.8 per cent gain over five years. Known for its multicultural community and proximity to the Broadmeadows transport and retail hub, Dallas is increasingly targeted by first home buyers. It also offers a strong investment proposition with a rental yield of 4.5 per cent, the highest among this top five selection. Its location near the Upfield train line and the Western Ring Road ensures excellent connectivity for commuters.

4.  Brookfield, 3338

• Median Sale Price: $601,000
• Annual Growth: +8.5%
• 5-Year Growth: +20.2%

Brookfield is a modern, lifestyle-oriented suburb in the west with a median house price of $601,000. It has maintained strong momentum with an 8.5 per cent increase in values over the last 12 months, contributing to a total five-year growth of 20.2 per cent. The area is predominantly composed of newer housing estates designed for families, featuring modern floor plans and proximity to local childcare and primary schools. With a rental yield of 3.9 per cent, it serves as a reliable option for investors looking for lower-maintenance, newer assets in a high-growth region.

5.   Laverton, 3028

• Median Sale Price: $605,000
• Annual Growth: +2.5%
• 5-Year Growth: +8.0%

Strategically located closer to the coast and the CBD than its western counterparts, Laverton is a suburb in transition. It currently holds a median house price of $605,000, showing more modest growth of 2.5 per cent over the last year and 8 per cent over five years. Its major drawcard is exceptional transport connectivity, with the Laverton railway station serving as a key express hub to the city. While historically industrial, the suburb is undergoing a demographic shift as buyers recognise its potential for gentrification and proximity to the Altona beachfront. It offers investors a consistent 4 per cent rental yield.

A closer look at the top 5 cheapest suburbs to buy a unit in Melbourne

Melbourne’s unit market offers a diverse range of entry points, from high-yield inner-city apartments to newer developments in the outer growth corridors. This segment is particularly attractive for investors and first-home buyers prioritising proximity to universities, transport hubs, and lifestyle precincts.

1.   Albion, 3020

• Median Sale Price: $281,000
• Annual Growth: -4.8% 
• 5-Year Growth: -30.8%

Located in the western suburbs, Albion is currently the most affordable entry point for Melbourne units with a median price of $281,000. While the suburb has seen a 4.8 per cent dip in values over the last 12 months and a more significant 30.8 per cent decline over five years, it remains a high-yield opportunity at 6.9 per cent. Albion offers a quieter, residential feel compared to neighbouring Sunshine, but benefits from the same proximity to the Sunshine transport super-hub. Its mix of older-style brick apartments and increasing gentrification makes it a strategic choice for budget-conscious buyers looking for proximity to the city’s west.

2.   Caulfield East, 3145

• Median Sale Price: $320,000
• Annual Growth: -28.9% 
• 5-Year Growth: -31.9% 

As a major educational hub, Caulfield East serves a high volume of students and young professionals. The median unit price stands at $320,000, following a sharp 28.9 per cent annual decrease and a 31.9 per cent five-year decline. Despite the price volatility, the suburb offers one of the strongest rental yields in the city at 6.9 per cent. Dominated by the Monash University Caulfield campus and the Caulfield Racecourse, the area is defined by its vibrant, transient population and excellent connectivity via the Caulfield railway station. It remains a prime target for investors seeking high rental demand from the local student demographic.

3.   Carlton, 3053

• Median Sale Price: $330,000
• Annual Growth: -19.5% 
• 5-Year Growth: +1.5% 

Carlton provides an unparalleled opportunity to enter the inner-city market just steps from the CBD. With a median price of $330,000, the market has experienced a 19.5 per cent annual correction but maintained a modest 1.5 per cent gain over five years. The standout feature of Carlton units is the exceptional rental yield of 8.7 per cent, the highest on this list. Famous for the Italian heritage of Lygon Street and its proximity to the University of Melbourne and RMIT, Carlton attracts a mix of students, academics, and city professionals. The high density of studio and one-bedroom apartments keeps the entry price low despite the premium location.

4.   Travancore, 3032

• Median Sale Price: $360,000
• Annual Growth: -0.3%
• 5-Year Growth: +4.4% 

Positioned between Flemington and Parkville, Travancore is a small, often overlooked pocket that offers excellent value. The median unit price is $360,000, showing stability with only a minor 0.3 per cent annual dip and a 4.4 per cent increase over five years. With a healthy rental yield of 7.6 per cent, it's a strong performer for investors. The suburb is known for its green spaces and heritage-listed buildings alongside modern apartment complexes. Its position on the border of the city’s north makes it highly accessible for those working in the healthcare or education sectors in nearby Parkville.

5.   Mernda, 3754

• Median Sale Price: $381,750 
• Annual Growth: -15.2%
• 5-Year Growth: +7.5%

Mernda represents the modern face of Melbourne’s outer north-east. The median price for units and townhouses in the area is $381,750, reflecting a 15.2 per cent decrease over the past year but a solid 7.5 per cent growth over five years. Offering a rental yield of 5.5 per cent, Mernda is popular with young families and first-home buyers who prefer newer builds and master-planned community facilities. The extension of the Mernda rail line has been a significant driver for the area, providing direct city access and supporting the development of the Mernda Town Centre retail precinct.

Most affordable suburbs to buy within 10km of Melbourne CBD

Want to be a little closer to the action?  These Melbourne suburbs are within 10km of the CBD, all in the south or inner west:

Our pick is West Footscray

West Footscray currently stands as one of the most accessible entry points for houses within striking distance of the city centre. While price growth has stabilised over the past year with a modest 0.5 per cent increase, its long-term performance remains healthy, with values rising by over 13 per cent since 2021.

The suburb’s appeal is anchored in its multicultural character and the vibrant Barkly Village retail strip. Connectivity has been fundamentally transformed by the recent launch of the Metro Tunnel; the Sunbury line now provides direct access to five new underground stations, including Parkville and State Library, offering commuters high-frequency services to the CBD. Additionally, the $1.5 billion New Footscray Hospital is scheduled to begin patient care in February 2026, solidifying the area’s status as a major health and education precinct. 

For buyers, the $872,000 median price represents a strategic opportunity to invest in a suburb that is successfully balancing its working-class roots with a modern, lifestyle-focused future.

Where is this data from? 

The data is collected from Domain. Data reflects January 2025 to December 2025 period and suburbs must have at least 10 sales and 10 rental listings in the last 12 months to be included in the list.

Things to remember

When looking to buy a bigger block in the outer suburbs there are a few things to keep in mind. Always consider your public transport options as you don't want to burn out on a rough commute. Suburbs near a train line or well-connected with buses are ideal. Investigate all aspects of the area to ensure there is well-developed infrastructure with plenty of opportunity for jobs, entertainment and economic growth.

Frequently asked questions about the cheapest suburbs to buy in Melbourne