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Investors’ goldmine: Where are Victoria’s next star suburbs?
Victoria’s property market is surging back, with metro and regional hubs tipped for strong growth fuelled by affordability, demand, and major infrastructure investment. Here are the places to watch.
Victoria has landed three cities set for high growth in the latest Hotspotting Top 10 National Best Buys report, more than any other state.
Hotspotting director Terry Ryder said that Victoria’s regional and metropolitan areas have clearly demonstrated signs of recovery and positive growth.
“There’s no doubt that a significant recovery is underway in Melbourne and also in regional Victoria. There has been a strong uplift in sales activity in both jurisdictions since the start of the year,” Ryder told REB.
“Melbourne’s rise is largely driven by a major program of infrastructure development, high population growth from overseas migrants, and relative affordability.
“The only markets I rate as stronger than Melbourne at the moment are Darwin and Brisbane. By the end of 2025, Melbourne is likely to be a national leader on price growth.”
In their report, Hotspotting highlighted the top 10 locations around the country where strong economies, infrastructure growth, and suitable housing options combine to create attractive opportunities for both investors and home buyers.
In Victoria, Frankston, Greater Geelong and Yarra have made the ranking and are forecast for long-term growth and good investment opportunities.
By comparison, Queensland, NSW and Tasmania each had two cities ranked, while only Darwin made the list in the Northern Territory, and Western Australia missed the top 10 entirely.
“These are markets where affordability and infrastructure investment are laying the groundwork for sustained capital growth in the years ahead,” Ryder said.
Hotspotting general manager Tim Graham said that the market will be rewarding early movers.
Graham said Frankston is evolving into a metropolitan hub, with major infrastructure projects and high-rise approvals driving strong demand for both houses and apartments, as buyers are drawn to its coastal lifestyle and connectivity.
“Frankston is Greater Melbourne’s rising star. It’s got the infrastructure and the energy to support long-term growth,” he said.
Similarly, Geelong’s infrastructure investment and strategic planning have helped sustain an affordable and innovative market with a strong demand for detached housing.
“It’s a market with scale, vision, and the kind of planning that supports sustained growth.”
Graham said Yarra’s regeneration has been driven by major apartment projects transforming former industrial sites into vibrant precincts, with affordable prices and proximity to the CBD fuelling investor demand.
“Yarra is rewriting its urban story. It’s a compact municipality with outsized potential. It’s one of the few places in inner Melbourne where affordability and growth still intersect,” he said.
According to Ryder, affordability is driving demand throughout the state, with Melbourne’s strongest markets in Frankston, Casey, Hume and the city’s unit sector, while Bendigo, Ballarat, Geelong and Shepparton lead regional Victoria’s revival with accessible home prices.
While recovery has been evident in the Victorian market, Ryder still warns investors that the taxes in the state remain higher than in any other market.
“Victoria offers opportunities to buy well for future capital growth, but investors need to remember that Victoria has the highest property taxes in the nation, and the state government is particularly hostile to property investors,” Ryder concluded.
