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Home › Market Insights › Best Suburbs to Invest in Melbourne Under $600k
Finding good investment opportunities in Melbourne has become more challenging as prices continue to rise. Recent market data shows that only a small number of suburbs still sit below the $600k mark for houses. This makes it harder for first-time and budget-conscious investors to enter the market. It also means competition is stronger in the few affordable suburbs that remain. In spite of this, Melbourne still offers value pockets where you can buy well, secure healthy rental returns, and benefit from long-term growth. This guide walks you through the best suburbs to consider under $600k, the data behind their investment appeal, and the risks worth watching. You will also learn how to assess whether a suburb fits your goals. This helps you make a confident and informed choice.
Key Takeaways You can still buy under $600k in Melbourne, mainly in the west, north and south-west where affordability remains strongest. Suburbs like Melton, Wyndham Vale, Coolaroo and Werribee continue to offer value with lower entry prices and solid rental demand. Strong rental yields (around 4%+), population growth and infrastructure upgrades are the main drivers supporting long-term returns in these areas. Outer-ring suburbs vary widely, so assessing transport, vacancy rates, schools and future supply is essential before investing. Houses often outperform units in these corridors because they offer land value, less oversupply risk and stronger buyer demand. Oversupply in new estates is a real risk, so check the future development pipeline before you buy. Careful research and guidance from local agents can help you choose the suburb that best fits your budget, yield targets and long-term investment plan.
Key Takeaways
Next step: Compare top Melbourne investment-focused agents to understand which areas they specialise in before you shortlist suburbs.
Buying under $600k in Melbourne has become far more difficult in recent years due to rising prices and tighter affordability. Even so, this price point still offers some of the strongest opportunities for value-driven investors. Understanding why these suburbs matter helps you decide whether this strategy aligns with your long-term goals.
Only a small share of Melbourne suburbs still offer houses below $600k. According to reporting from realestate.com.au, just 16 suburbs remained under this threshold as affordability tightened across the city. This shows how sharply the market has moved and why the remaining pockets attract strong investor interest. Lower entry prices also make it easier to secure finance, build equity faster, and manage cash flow compared with higher-priced inner suburbs. The outer ring continues to benefit from major road upgrades, rail improvements, and education and retail projects. These long-term infrastructure investments support population growth and drive future demand. Rental yields also tend to be stronger in more affordable suburbs because rents rise faster than property prices. This is helpful for investors looking to balance long-term growth with income stability.
Buying in the sub-$600k range requires careful selection though. Some areas carry risks such as oversupply of new estates or long commute times. This makes it important to compare suburbs based on data and fundamentals rather than price alone.
Melbourne’s property market has been gradually strengthening through 2025. This creates a mixed but promising environment for investors working within a $600k budget. Understanding the broader market helps you see why affordable outer-suburb pockets remain attractive and where the risks sit.
Recent updates from major analysts show Melbourne has recorded several months of home price growth during 2025. This follows a period of softer conditions in 2023–24, when higher interest rates slowed buyer demand. The improvement suggests confidence is returning to the city’s housing market. Some reports also highlight that Melbourne’s house prices remain below their long-term trend, which may indicate a buying window for investors who take a patient, long-term approach. At the same time, affordability pressures continue to shape the market. This is why sub-$600k suburbs are experiencing more attention from first-time buyers and renters seeking better value.
Investment-grade opportunities at this budget usually sit in Melbourne’s outer west, north and south-west. Houses and townhouses are more realistic in these areas compared with the inner ring, where prices have moved well above the $600k mark. Units can be cheaper in the inner suburbs, but some locations carry oversupply risk from high-density developments. These can affect rental demand, vacancy rates and long-term capital growth. This is why many budget-conscious investors prefer outer-ring houses. They often sit on larger land parcels and benefit from population growth, new estates, road upgrades and employment hubs expanding outward.
There are still factors to watch. Oversupply in new land estates can soften growth if too many stages are released at once. Rental demand varies between suburbs. Commute times can limit tenant appeal if transport upgrades lag. Being aware of these risks helps you approach the market in a balanced, data-driven way.
Choosing the right suburb under $600k is more than finding the lowest price. A good investment suburb combines affordability with strong demand drivers, rental performance, and long-term growth potential. Having clear criteria helps you compare suburbs with confidence and avoid choosing based on price alone.
Many of Melbourne’s remaining sub-$600k suburbs sit in outer western, northern and south-western corridors. These areas vary widely in rental demand, infrastructure support and future supply. A structured checklist keeps your decision grounded in data rather than assumptions or emotion. Below are the key elements investors should assess.
Look for suburbs where houses are still trading below the $600k threshold or have a strong volume of listings at this level. This helps ensure genuine affordability and lowers your upfront financial pressure.
Higher yields can improve cash flow and reduce holding costs. Suburbs with growing family populations or strong rental competition tend to deliver better returns at this price point.
Road upgrades, public transport improvements, hospitals, schools and retail hubs all help drive long-term buyer demand. Many sub-$600k suburbs sit in state-recognised growth areas, which can support stronger capital growth over time.
Reliable train stations, bus routes and shorter commute times improve tenant appeal. Employment centres nearby also stabilise rental demand and reduce vacancy risk.
Areas attracting young families, first-home buyers or new migrants often have steady rental demand. Stable growth in new residents supports both yield and price performance.
Large new estates with continuous land releases can limit price growth. Assess how much new supply is planned and whether developer activity is slowing or accelerating.
Access to schools, essential services, healthcare and retail centres helps keep vacancy rates low and makes the suburb more attractive to long-term renters.
Homes under $600k attract strong competition when marketed well. Work with an agent who knows how to position your property, create urgency and negotiate confidently.
Melbourne still has a handful of suburbs where you can buy a house under $600k. These areas are mostly in the outer west, north and south-west. They offer lower entry prices, stronger yields and significant infrastructure investment. Each suburb carries different strengths and risks, so reviewing them side-by-side helps you shortlist the right options for your goals.
Below are four high-value suburbs often identified in recent investment analyses for their affordability, rental performance and long-term upside.
Melton is one of Melbourne’s most recognised affordable growth corridors. It sits around 43 kilometres west of the CBD and continues to attract strong demand from young families and budget-focused renters.
Recent data places Melton’s median house price at around $470,000 and gross rental yields at roughly 4.5%. These figures come from multiple investor and property research sources that highlight Melton as one of the strongest value suburbs still under the $600k mark. It also benefits from major growth area plans, upgraded retail centres and improvements to the Melton train line. The area’s ongoing development makes it appealing to investors chasing long-term price appreciation.
Why Melton works for investors:
Risks to consider:
Coolaroo offers a combination of affordability and proximity to major employment hubs in the north. It sits near Broadmeadows and is around 18 kilometres from the CBD. Despite being close to key transport links, its prices remain accessible to first-time investors.
Recent figures place the median house price at around $545,000, keeping it within the sub-$600k target. Coolaroo has strong access to rail lines, employment centres and community facilities. These features help maintain rental demand from cost-conscious families and workers commuting to the city or nearby industrial hubs.
Why Coolaroo works for investors:
Werribee is a well-established suburb in Melbourne’s south-west. It sits roughly 32 kilometres from the CBD and has long been considered a key growth area due to its mix of lifestyle appeal, transport access and affordability.
While the median house price has been moving upward, many homes still sit below the $600k threshold, making it realistic for investors on a tighter budget. Werribee benefits from its train line, riverside parks, schools, and proximity to employment hubs in Werribee, Hoppers Crossing and Wyndham. It also appeals to families, which helps support steady rental demand.
Why Werribee works for investors:
Wyndham Vale remains one of the most popular budget-friendly suburbs for investors seeking balanced rental returns and long-term growth. Its median house price is around $579,000, which keeps it accessible while still offering strong potential for future value.
The suburb benefits from the Wyndham Vale train station, new estates, upgraded shopping precincts and strong population growth. These features make it appealing to tenants looking for affordable homes with modern amenities and reliable transport.
Why Wyndham Vale works for investors:
Buying an investment property under $600k can be a smart way to enter the Melbourne market, but there are common mistakes that can weaken your returns. Being aware of these traps helps you choose better suburbs and avoid decisions based purely on price rather than performance.
Investors sometimes focus only on affordability and miss important signals like rental strength, future supply and infrastructure timelines. Suburbs in Melbourne’s outer ring vary widely in quality, demand and long-term growth. This means careful research is essential. Understanding the underlying risks helps you select areas that can deliver both stable rental income and future capital growth.
A cheap property is not always a good investment. Look for areas with strong rental demand, population growth and infrastructure support.
Long commute times or limited public transport options reduce tenant appeal. Prioritise suburbs with improving road links, train access or planned upgrades.
Large new estates releasing hundreds of lots can slow price growth. Check the development pipeline before committing.
Strong yields mean little if properties sit empty. Look at rental listings, vacancy trends and tenant demographics.
Stick to fundamentals such as rental yields, days on market, price growth history and local economic conditions.
Melbourne may be an increasingly expensive market, but there are still genuine opportunities for investors working within a $600k budget. Suburbs in the west, north and south-west continue to offer a balance of affordability, rental strength and long-term growth potential. The key is choosing locations supported by solid fundamentals such as infrastructure upgrades, population growth and healthy rental demand. When you combine these factors with disciplined research and a clear strategy, you can build a strong foundation for long-term wealth even in a rising market.
Investing at this price point does require careful due diligence. Some pockets carry oversupply risk, while others vary street by street. Taking time to compare rental yields, vacancy rates, transport options and local development plans will help you avoid weaker performers. With the right approach, buying under $600k can deliver both financial stability and future capital gains.
Before you move forward, consider narrowing your shortlist to two or three suburbs that fit your goals. Speak with local agents who specialise in investment properties, gather recent sales data and arrange inspections if needed. This structured approach gives you confidence and ensures your next step is informed, rather than rushed.
Yes. While affordability has tightened, $600k is still enough to buy a house in select outer suburbs. Most opportunities are in the west, north and south-west, where demand from renters is strong and long-term growth is supported by new infrastructure.
Suburbs like Melton often offer gross rental yields around the mid-4% range. Yields vary by property type and location. Houses in high-demand family areas tend to perform better than units in oversupplied pockets.
Most investors prefer houses in growth corridors because they offer land value and lower oversupply risk. Units in some inner suburbs may be cheaper but can carry weaker rental demand and slower capital growth.
Major road upgrades, rail projects, schools and retail expansions increase accessibility and demand. This supports stronger rental interest and long-term capital growth, especially in suburbs like Melton and Wyndham Vale where multiple projects are underway.
Yes, if you choose a corridor with strong population growth, committed infrastructure investment and stable rental demand. Many of Melbourne’s under-$600k suburbs sit in designated growth areas that benefit from long-term government planning.
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