Cheapest suburbs to buy in Melbourne 2025

If you’ve been looking to buy a home or investment property in Melbourne, you may have noticed that the city’s property market has faced some headwinds over the past year.

Fortunately, this could be an opportunity for buyers looking at cheap suburbs in 2025.

According to CoreLogic data that looks back at 2024, Melbourne recorded the largest annual decline in property values across Australia's capital cities with prices falling -3 per cent over the year.

Since the market’s last peak in March 2022, Melbourne prices have dropped -6.4 per cent, bringing the median property value to $774,093 — now sitting below Sydney, Brisbane, Canberra, Adelaide, and Perth.

Head of SQM Research, Louis Christopher, expects to see the market recover following interest rate cuts.

“However, once interest rate cuts do occur, we are expecting a speedy bounce in demand for Sydney and Melbourne in particular, (where both are still) experiencing underlying housing shortage relative to the strong population growth rates.”

Here are the cheapest suburbs to buy in Melbourne — for both houses and units — as well as suburbs within 10km of the CBD.

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

Let’s now look deeper at Melbourne’s five most affordable suburbs for houses with insight into location and lifestyle potential.

1. Norlane, 3214

Located around 75 kilometres south-west of Melbourne’s CBD, Norlane sits within the Greater Geelong region and continues to attract attention for its affordability and growth potential.

The median house price is $470,000, having increased +32.5 per cent over the past five years. The median rent sits at $390 currently, up +5.4 per cent over the past year. Norlane also boasts a gross rental yield of 4.7 per cent and a low vacancy rate of just 1.0 per cent.

2. Melton, 3337

Part of Greater Melbourne, Melton is located 47 kilometres from the CBD on the city’s western urban-rural fringe. Offering a vibrant urban lifestyle in a picturesque setting, Melton is also relatively affordable.

The suburb's median house price is $470,750, having risen +22.1 per cent over the past five years. The current median rent is about $410, rising +7.9 per cent over the past 12 months. As of March 2025, the gross rental yield for houses is 4.0 per cent with a vacancy rate of 2.6 per cent.

3. Corio, 3214

Located just over an hour’s drive from Melbourne’s CBD, Corio is part of the Greater Geelong region. It offers suburban convenience while maintaining its affordability. 

The median house price is $488,000, up +36.8 per cent over the past five years. Rents are also on the move, with the median weekly rent now $420, up +5 per cent in the past year. A gross rental yield of 4.7 per cent and tight vacancy rate of just 1 per cent suggest there’s consistent demand — whether you’re buying to live in or lease out.

4. Melton South, 3338

Located 37 kilometres west of the Melbourne CBD, Melton South has become popular with young homebuyers for its established, family-sized homes close to shops, schools and public transport.

With a median house price of $500,000, it continues to attract buyers seeking more bang for their buck. Houses in Melton South rent for a median $430 per week – up +7.5 per cent over the past year – with a rental yield of +3.9 per cent.

5. Breakwater, 3219

Just over 80 kilometres south-west of Melbourne’s CBD, Breakwater offers a quieter residential pocket minutes from Geelong’s city centre, with easy access to urban amenities and the Barwon River.

The median house price is $507,500, with values rising +28.2 per cent over the past five years. Currently, the median rent is $440, up +3.5 per cent over the past 12 months. A gross rental yield of 4.0 per cent and a tight vacancy rate of 0.8 per cent point to steady demand in this well-connected, laid-back suburb.

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

Now let’s take a closer look at what each of our top 5 cheapest Melbourne suburbs for units has to offer.

1. Herne Hill, 3218

Herne Hill is a charming, tree-lined suburb in Geelong located about 75 kilometres south-west of Melbourne. Locals enjoy everyday convenience with easy access to schools, parks, and local shops.

Units have a median price of $350,000, with values rising +18.6 per cent over the past five years. As of March 2025, the median unit rent is $350, up +6.1 per cent in the last year. Herne Hill has a gross rental yield of 4.2 per cent and a low vacancy rate of 0.8 per cent.

2. Albion, 3020

Albion is a quiet, family-friendly suburb only 14 kilometres west of the CBD. With so much to offer right on the city’s doorstep, units in Albion remain surprisingly affordable with a median price of $350,000.

Unit prices have risen +12.1 per cent over the past five years while a low vacancy rate of 1.3 per cent keeps the rental market tight. The median rent is $380 with a strong rental yield of 4.7 per cent.

3. Melton South, 3338

Roughly 45 kilometres west of Melbourne’s CBD, Melton South offers an affordable entry point into the property market with a growing mix of infrastructure, schools, and transport links.

The suburb has a median unit price of $360,000, with values increasing +18.1 per cent over the past five years. Currently, the median rent sits at $370, up +5.7 per cent compared to the same time last year. The gross rental yield sits at 4.7 per cent, though a vacancy rate of 4.8 per cent indicates it might take longer to find tenants compared to other areas.

4. Corio, 3214

Tucked into Geelong’s northern suburbs, around 75 kilometres from Melbourne, Corio offers a budget-friendly option for unit buyers looking for value and convenience. 

With a median unit price of $377,500, prices have grown +15 per cent over the past five years, while rental demand remains strong. As of March 2025, the median rent is $350, up +9.4 per cent year-on-year, with a rental yield of 4.4 per cent and a low vacancy rate of just 1 per cent.

5. Whittington, 3219

Just a few minutes from the heart of Geelong and around 75 kilometres from Melbourne, Whittington is a rising suburb that blends affordability with convenience.

The median unit price is $380,000, up +24.8 per cent over the past five years. Rents have climbed +6.7 per cent in the last year to a median of $400, delivering a strong 5.2 per cent yield. With a vacancy rate of just 0.8 per cent, Whittington continues to draw interest from both renters and budget-conscious buyers. 

Most affordable suburbs to buy within 10km of Melbourne CBD

For those looking to buy within a 10km radius of the Melbourne CBD, these are the suburbs with the lowest median house prices.

Our pick is Braybrook

Braybrook, located in the City of Maribyrnong, is loved by locals for its well-serviced suburban lifestyle only a stone’s throw from the CBD. The median house price is $762,800, and with prices rising just +3.8 per cent over the past five years, Braybrook may soon come to the attention of more homebuyers and investors seeking affordable houses in a top location.

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