Best Suburbs to Invest in Melbourne


As one of the most populated cities in Australia, there is a wealth of opportunities to invest in commercial properties in Melbourne and the inner-city suburbs. From retail shopping strips to new office buildings and industrial precincts, investors can find variety within these busy streets to add lucrative new sites to their portfolios.

In this in-depth exploration, our specialists at Rethink Investing will cover some of the best suburbs to invest in Melbourne, helping you make well-informed decisions in the thriving property investment market. We’ll delve into the type of commercial properties Melbourne has to offer, from Fitzroy to Dandenong, ensuring you can confidently rent and invest in the most rewarding opportunities available.


Why Choose Commercial Property Investments in Melbourne?


Melbourne, Australia’s cultural capital, is renowned for its diverse economy, thriving business environment, and steady population growth, predicted to overtake Sydney by 2031-32. These factors make it an attractive destination for investors seeking high yields and long-term growth in the median sale price for their Melbourne investment property portfolio.

The city’s strong economic performance, world-class infrastructure, and highly skilled workforce further contribute to the allure of commercial property investments in Melbourne. What’s more, the recent constriction of the commercial market has led to a reduction in yields, which essentially translates to capital price growth.

As always, certain commercial properties will also offer the ability to negotiate extended leases, spanning three, five, or even over a decade, allowing for the incorporation of yearly rent increases into the agreement. Such stability and robust returns on average rental yield are not always available in other investment vehicles, making commercial properties in Melbourne far more appealing.

For more information, be sure to review our commercial property buying guide for investors.


Best Suburbs to Invest in Melbourne


From trendy inner-city locations to bustling outer suburbs, here is our detailed list of the best suburbs to invest in Melbourne for commercial property investors.


Fitzroy, located just 2.7 km northeast of the Melbourne CBD, is a vibrant and eclectic suburb renowned for its vintage shops, art galleries, and unmistakable hipster vibe. The area boasts strong population growth and is currently seeing a raft of commercial developments in progress and planned for the future, as well as iconic, multi-storey freehold retail spaces, office buildings and expanded warehouses.

Fitzroy also offers excellent connectivity, a lively dining scene, ongoing gentrification, and a strong sense of community, making it an ideal choice for property investment seekers in Melbourne.


Collingwood is a trendy inner-city suburb situated just 3.6 km east of Melbourne’s CBD. Investors from across the nation are rushing to inject their money into this area that continues to somehow manage a thriving arts scene with many popular cafes and dining spots, while also holding a dynamic startup culture. A perfect example is the fresh Victoria and Vine development worth over $280 million, spanning nine buildings filled with a selection of retail spaces and residential sites across a full block.

Collingwood also offers a wealth of commercial property investment opportunities around creative offices, shared workspaces, and industrial properties. The suburb’s accessibility to public transport and diverse demographic profile contribute to its pull for new and serial investors seeking commercial properties in Melbourne.


Richmond is nestled 4.7 km southeast of the Melbourne CBD and has grown into a lively, tightly-packed suburb offering a mix of retail, office, and industrial spaces. Its bustling shopping streets, such as Bridge Road and Swan Street, make Richmond a desirable destination for outlets and those in hospitality to set up shop, while the proximity to major transport hubs leaves it excellent for office workers and those in blue-collar fields. This popularity has left the few spaces that come available highly sought after. When combined with a vibrant dining scene and a mix of both modern and historic architecture, the coming years are predicted only to enhance the area’s investment appeal.

Mulgrave & Notting Hill

As middle-ring Melbourne suburbs towards the southeast, Mulgrave and Notting Hill stand out in the crowd for the industrial properties of some global brands, such as the head offices for BMW and Mercedes Benz in Australia. The areas hold a strong focus on their commercial and industrial sector development, offering a diverse range of commercial property investment options, from modern office spaces to warehouses and logistics facilities.

Key infrastructure developments like the M1 freeway and Eastlink have granted excellent connectivity to the broader Melbourne area, while the presence of Monash University and a burgeoning technology precinct contribute to their investment potential.


Thanks to its proximity to all major arterials and a short 12 km west of the city centre, Sunshine has experienced significant commercial and residential development in recent years. With a diverse range of commercial properties, Sunshine presents excellent opportunities for investors seeking retail strips, office blocks, industrial lots, and land for development.

The suburb’s ongoing revitalisation projects, such as the Sunshine Railway Station upgrade, will surely add a further boost to its investment appeal.

Glen Waverley & Mount Waverley

Glen Waverley and Mount Waverley, situated between 20 km and 28 km southeast of Melbourne’s CBD, are rapidly expanding suburbs with strong demand for commercial property. Both suburbs feature a mix of retail and office space, but there has been a particular increase in demand for industrial openings.

Glen Waverley is a bustling retail hub with The Glen Shopping Centre, Kingsway shopping, dining and entertainment precinct, and numerous other retail outlets. This Melbourne suburb also boasts a thriving dining scene, attracting both local residents and visitors, increasing the demand for hospitality spaces.

Mount Waverley, on the other hand, offers a more serene environment with its leafy streets and green spaces. The presence of several business parks and industrial estates leaves it a sought-after destination for office and industrial property investments.

Their strategic locations, close to major highways and public transport options, offer excellent connectivity to Melbourne’s CBD and surrounding areas.


Dandenong was once looked upon unfavourably by some of the more affluent suburbs listed above, but in recent years has exploded in potential as a major commercial and industrial hub in the southeast. Located about 36 km from the CBD, eager investors can find a diverse range of commercial property investment opportunities in warehouses and factories, which have proven rare in such abundance in Victoria.

As one of Melbourne’s largest employment hubs, Dandenong is also home to a broad spectrum of industries, including manufacturing, logistics, and retail. The ongoing revitalisation of the Dandenong CBD, coupled with the completion of major infrastructure projects like the Eastlink motorway and the Dandenong Bypass, have left it more connected than ever.

Coburg North

If you have carved room in your Melbourne investment property portfolio for industrial sites, Coburg North is gaining a lot of attraction with savvy investors. Situated 11 km north of Melbourne’s CBD, this is an up-and-coming suburb with a growing demand for commercial property, featuring a healthy mix of available land, industrial precincts, new office warehouse developments, retail strips, and much more, catering to the needs of a diverse range of businesses.

Coburg North’s ongoing urban renewal, improved public transport connectivity, and strong local economy ensure it is an attractive destination for commercial property investors in Melbourne.


Melbourne Real Estate & Investment Management Experts


Rethink Investing is a leading commercial buyers agent with unmatched expertise in commercial real estate in Melbourne, covering both metropolitan and regional areas. Our team’s extensive knowledge and experience in the Melbourne property market enable us to provide tailored investment advice and strategies to help you navigate the commercial property landscape. With a focus on identifying high rental yields and long-term growth opportunities in property prices, Rethink Investing is your trusted partner for commercial property investment in Melbourne.

For more information on the best suburbs in Melbourne, speak with our team today.

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