Melbourne is home to a diverse range of property markets, each with its unique growth potential. While the overall Melbourne property market has experienced some fluctuations, certain areas have emerged as booming locations that present exciting opportunities for both homebuyers and investors. Whether you’re looking for capital growth or a solid rental yield, here are the top 3 boom suburbs in Melbourne you should consider for your next property purchase.
Here are the Three Boom Locations in Melbourne
Like any investors looking to identify the boom locations, we turn to everyone's favourite AI - ChatGPT. We asked ChatGPT to identify the top 3 boom suburbs in Melbourne, and here's what ChatGPT has to say:
1. Brighton
Brighton is a well-established, high-demand suburb due to its proximity to the beach, luxurious properties, and excellent amenities like schools and transport. It's a prime choice for affluent families and professionals. The scarcity of land and high quality of life here drive continued property demand.
Why it’s good:
Proximity to the beach enhances lifestyle appeal.
Strong demand for prestigious homes keeps the market competitive.
Limited land supply pushes prices upward.
High-end infrastructure and boutique shopping options increase its allure.
2. Hawthorn
This inner-city suburb is famous for its beautiful Victorian and Edwardian homes, its elite private schools, and easy access to Melbourne's CBD. Consistent interest from families and professionals ensures property values remain strong and continue to appreciate.
Why it’s good:
Proximity to top schools (e.g., Scotch College).
Accessible via multiple public transport links (trams, trains).
Period homes with heritage appeal maintain long-term value.
Tight rental market, which supports investor confidence.
3. Albert Park
Situated between the CBD and Port Phillip Bay, Albert Park offers the best of both city living and beachside relaxation. Its historic homes, combined with proximity to Albert Park Lake and the Grand Prix circuit, attract high-end buyers and investors alike.
Why it’s good:
Proximity to Melbourne’s CBD and South Melbourne markets.
Stunning Federation-style homes offer unique appeal.
Strong demand from both renters and owner-occupiers.
High community engagement and lifestyle factors, including parks and local schools.
Credit: ChatGPT 18 Oct 2024.
Why These Suburbs Matter for Buyers and Investors?
These three booming suburbs offer some of the best opportunities for capital growth and rental yield in Melbourne. They are driven by a combination of infrastructure projects, population growth, and proximity to key amenities. As Melbourne continues to evolve, these suburbs stand out as top contenders for both homebuyers looking for value and investors aiming to maximize their returns.
If you’re considering buying property in Melbourne, now is the perfect time to explore these locations. Partnering with a buyers advocate can help you navigate the complexities of the market and ensure you’re making a smart investment that aligns with your goals.
Why Should You Buy in These Boom Suburbs With Caution?
While recommendations from AI and search engines may seem credible, it is essential to remember that the information they provide:
is based on what has been published in the public domain for months and possible years.
does not take into consideration your investment goals, purpose, risk profile, etc.
Let's explain further.
Reason 1: Information is often outdated by the time it reaches you.
Sometimes, the information can be so outdated that it has become irrelevant. Other investors and buyers would have already acted on this data, driving up prices and reducing your profitability. As a result, you will be paying a premium for a property in these locations and you might not be seeing the returns you expect. Ask those who chased and are still chasing the Brisbane and Perth market. These locations had been booming for over 2-3 years and as experience shows, buyer interests has cooled and prices are too high for what they are. They are likely overdue for a correction, which can happen as early as the next 12 months.
Following the crowd, especially when driven by Fear Of Missing Out (FOMO), often leads to poor investment decisions. The so-called "hot" suburbs from search engines and AI may have already be past their prime, leaving little growth opportunity by the time you enter the market. Relying on recycled, generic information when making property purchases could push you into areas where prices are over-inflated, limiting future gains, or even resulting in you making a significant loss.
Reason 2: Information is generic and may not be relevant to your investment profile.
If you had done your due diligence on the 3 suburbs mentioned above, you would also realise that "typical prices" of properties in the 3 recommended "BOOM" suburbs range from $500,000 to well over $3,000,000. Would these prices fit your budget? Probably. but do the properties you can afford in these suburbs have enough demand to drive future price growth? Quite possibly not.
Moreover, these generic recommendations obviously did not consider your personal goals of investing in properties. Does it have the capital growth, yield, depreciation you need? Nor do they assess if you are able to practically afford it in the those areas. You could be looking for something near popular amenities, or your work location in Uluzulu,
While search engines and AI can provide answers to your questions, the answers are likely old, and outdated and no longer be relevant for savvy property investors and buyers.
Free Property Investment Seminars on Boom Suburbs? What you need to know.
Free property investment seminars are often promoted as educational events but their primarily aim is to sell new off the plan properties such as apartments, townhouses and units. While these seminars can provide some insights and networking opportunities, attendees should be wary of upselling tactics and assess the credibility of the hosts. To get the most out of the experience, it's essential to prepare questions, conduct independent research on the agency, locations, and properties, and follow up for further learning and connections.
These seminars can be useful for novice investors, but I wouldn't recommend spending much time in them, as they are just sales talk. Remember that if something is free, you are the product. Everyone wants to be paid. These events are not free. These events typically brings you to the developers, so they can sell their projects. The event organisers are paid by the sales commissions from the developers. These are sales events.
The Real BOOM Locations in Melbourne
Here’s a secret:
Melbourne’s booming property locations are different for different budgets.
With Melbourne’s property prices spanning from $300,000 to over $10 million, trying to invest in high-value areas with a small budget always lead to disappointment. For instance, while you might be able to buy a $300,000 property in a million-dollar suburb, it will always be an entry-level property. And it is considered "entry level" for a reason. Is this a property which is over-supplied in the area? Or a property that needs substantial changes or upgrades? It’s unlikely that these properties will ever catch up to the suburb's median price or deliver substantial growth compared to a $1,000,000 house in the same area.
Instead, investing in a $300,000 house within a $400,000 suburb can comparatively deliver better results. In a suburb where your $300,000 property is competitive in quality, location, or size, the growth potential can often match (or exceed) neighbouring properties in capital growth.
The right budget for the right property at the right location.
What does this mean for investors?
The BOOM suburb will be different depending on your budget. And because Melbourne’s property market can shift very fast, these BOOM suburbs can often change every month. At Concierge Buyers Advocates, we invest significant time and resources each month buying and analyzing sales data, stock availability, rental trends, etc, to identify the next suburbs set to soar. We custom compile these detailed research results into highly accurate lists, and make them available at an affordable price. Don't pay $999 for such insights.
Curious about the next BOOM suburbs tailored to your budget? Contact us today! Let know your investment budget, and for just the price of an average meal, we’ll shortlist three suburbs expected to boom in the next 12-24 months, customised to your investment budget, for $38 + GST. Yes, that's 3 short, simple real suburb names for only $38+GST, saving you the hassle of researching and making sense of the hundreds of data points.
Let us help you unlock the best opportunities for your property investment goals—reach out now!
Why Concierge Buyers Advocates Is Different
At Concierge Buyers Advocates, we take a highly strategic and analytical approach to finding the best opportunities in Melbourne's evolving property market. We analyze over 100 different metrics—updated weekly and verified through on-the-ground inspections—ensuring we have the most current and accurate data available. Unlike others, we don't push pre-determined "hotspots" or packaged deals. Instead, we specialise in identifying boom locations before they become over-saturated.
This personalised, data-driven approach allows us to spot rising suburbs early, giving you the best chance to buy into a location before it becomes too competitive and expensive. Our expertise has been helping our clients avoid paying inflated prices for overhyped areas, and instead, find hidden gems that offer long-term potential.
What Are the Results for Our Clients?
This technique has been tried and tested, and had produced these results:
Client A paid $430k for a 3 bed house in Northern Victoria in 2023. 18 months later, a similar neighbouring property was sold for over $550k. A 28% rise in value over a short 18 months.
Client B paid $320k for a 3 bed house in Eastern Victoria in 2022. That property is valued at $450k in Oct 2024. A 40% increase in value in slightly over 2 years.
Client C bought 5000sqm land in Eastern Victoria for a low $180k in 2020. That land was sold for $1mil in 2024. 555% increase in value in a short 4 years.
Planning to get started with Property Investing?
Get in touch today. Our property investment advisors are more than happy to help you explore if our services is right for you.
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