Victoria’s real estate market is heating up again after a period of stagnation, with select suburbs across Melbourne and regional Victoria poised for significant growth. Population growth in Victoria (over 2% as of early 2024, the fastest in the nation) is fueling demand for housing. At the same time, billions are being invested in new infrastructure – from transport links to medical precincts – which is transforming previously overlooked areas into property hotspots.

With Melbourne’s median house price hovering around the million-dollar mark, many first-home buyers and savvy investors are looking beyond the traditional blue-chip suburbs. They’re targeting more affordable “value pockets” where they can still find reasonable prices along with strong rental yields and future upside. According to property analysts, Victoria currently leads the nation in these future buying opportunities, with multiple locations in the state named among Australia’s top 10 places to buy in 2025.

In this blog, we’ll explore five key up-and-coming suburbs in Victoria that are emerging as property hotspots. Each offers a combination of affordability, lifestyle appeal, and growth drivers like infrastructure projects or gentrification. If you’re a first-home buyer looking for value, or an investor seeking the next growth area, these Victorian locales should be on your radar.

Frankston, a seaside suburb about 40km south-east of central Melbourne, has rapidly shed its old reputation and is now one of Greater Melbourne’s rising stars. Once known for its affordable real estate and working-class vibe, Frankston is benefitting from a wave of gentrification and development. Locals joke it’s becoming the “colder version of Surfers Paradise” – a nod to its coastal lifestyle and emerging skyline – and indeed, the suburb’s evolution is striking. Investors and homebuyers priced out of inner-city bayside areas are flocking here, drawn by Frankston’s mix of beachfront appeal, improving amenities, and connectivity.

Why Frankston?

• Coastal Lifestyle & Gentrification: Frankston offers a coveted bayside lifestyle – beautiful beaches, coastal parks, and a lively foreshore – at a fraction of the cost of inner Melbourne’s beach suburbs. It is “a rapidly emerging bayside growth hub” with new cafes, restaurants, and apartment projects signaling ongoing gentrification. The area also features a hospital and a tertiary education precinct, adding to its appeal as a self-sufficient regional centre.
• Affordability Meets Demand: With a median house price around $750,000 (as of mid-2025), Frankston remains significantly more affordable than Melbourne’s inner suburbs. This relative affordability is translating into surging demand. In fact, local agents report that homes under $850k are now “fiercely contested” by first-home buyers and investors, and buyer activity in Frankston jumped about 25% in the past year. There’s “no such thing as cheap anymore, just smart buying,” one advocate quipped, and Frankston exemplifies this with its value-for-money proposition.
• Infrastructure & Connectivity: Major infrastructure projects are set to supercharge Frankston’s growth. Notably, the Victorian government’s Suburban Rail Loop plan includes a future station in Frankston, which will further integrate the suburb into Melbourne’s rail network. Improved transport links are already in place – the extension of the EastLink freeway, for example, has made Frankston one of the most accessible beachside locales from Melbourne’s CBD. Additionally, local planning authorities have green-lit several high-rise developments in the Frankston city centre, paving the way for increased housing density and a more vibrant skyline. All this infrastructure and development “energy” gives Frankston solid long-term growth foundations.

Frankston’s transformation from a sleepy fringe suburb into a bustling bayside hub has been remarkable. With its mix of lifestyle perks, relative affordability, and big projects on the horizon, it’s no surprise Frankston was highlighted as one of Australia’s top places to buy in 2025. For buyers seeking capital growth by the beach without the Brighton price tag, Frankston is a suburb to watch closely.

Sunshine, located just 12 km west of Melbourne’s CBD, is emerging as the economic and transport nucleus of the city’s west. Traditionally an industrial working-class area, Sunshine long remained undervalued – but that’s rapidly changing. The suburb is on the cusp of a boom thanks to unprecedented government investment in infrastructure. Sunshine has been identified as a key beneficiary of Melbourne’s transport upgrades, with projects underway that will transform the suburb into a major transit and employment hub.

Why Sunshine?

• Massive Infrastructure Investments: Sunshine is at the epicenter of several city-shaping projects. The upcoming “Sunshine Super Hub” will be a new interchange station linking various rail lines – including the future Airport Rail Link – effectively making Sunshine the gateway between Melbourne and its new international airport route. Additionally, Sunshine is slated to connect with the Suburban Rail Loop in later stages, further solidifying its role as a transport crossroads. These investments (over $10 billion committed to projects like the Airport Rail and Suburban Rail Loop East in the state budget) are “already changing Melbourne for the better” and clearly boosting the desirability of suburbs like Sunshine. The consensus is that improved connectivity and services will drive long-term value here.
• Undervalued with Room to Grow: Despite its proximity to the CBD and growing importance, Sunshine’s property prices have remained relatively affordable – until now. The median house price is about $750,000, which is low given Sunshine is only a 15-minute train ride from downtown. This price point (roughly 30% below Melbourne’s overall median) gives Sunshine plenty of room for capital growth. As Melbourne’s western and northern suburbs draw increased attention for value, Sunshine stands out as a prime candidate to catch up in pricing. Savvy buyers recognize that Sunshine’s combination of city fringe location plus upcoming infrastructure is hard to find elsewhere in Melbourne for the same money.
• Gentrification & Amenities: Sunshine’s character is evolving from industrial to residential. Old factories and warehouses are giving way to new housing estates, modern apartments, and expanded retail precincts. The suburb has undergone rezoning to encourage this development, which is one reason experts say Sunshine has been historically “undervalued” relative to its potential. Along with new homes, amenities have improved – Sunshine already boasts a major shopping center, a well-regarded hospital, and educational institutions. With a younger demographic and diverse community moving in, the area is seeing trendy cafes and businesses spring up. Sunshine is unmistakably in transition, riding a wave of government attention and private investment that is set to redefine Melbourne’s west.

In short, Sunshine offers a compelling story: inner-city convenience without the inner-city price, at least for now. As one property expert noted, with the addition of the airport rail and other projects “this will transform the suburb into a major transport and job hub”. For investors and homebuyers alike, Sunshine’s trajectory suggests strong growth ahead, making it a standout hotspot on the west side.

In Melbourne’s north, Preston has quietly become a real estate success story. Located about 9 km from the CBD, Preston flies slightly under the radar compared to hip neighbors like Brunswick, Fitzroy, or Northcote – but this is exactly what makes it attractive. Traditionally a migrant, working-class suburb, Preston has seen significant urban renewal and now offers an edgy, vibrant lifestyle at a more attainable price point than the inner-city. The suburb is benefitting from a “flow-on effect” as buyers who can’t afford Northcote or Brunswick look one train stop further out, bringing new energy into Preston.

Why Preston?

• Gentrification & Urban Renewal: Preston is undergoing a rapid transformation. The area around the Preston Market and High Street has seen new developments, including modern apartment complexes and updated public spaces. This “density shift” following urban renewal is changing Preston’s skyline and demographics. The suburb’s industrial pockets are being replaced with craft breweries, artist studios, and co-working spaces. Young professionals and creatives are moving in, giving Preston a trendy vibe reminiscent of Collingwood a decade ago. The ongoing regeneration of Preston is drawing positive attention to what was once a relatively overlooked area.
• Connectivity and Amenities: Preston has long had good transport links – it’s on the Mernda train line (with two stations, Preston and Bell), has multiple tram routes to the city, and enjoys easy access to major roads. This accessible public transport is a key selling point cited by experts. Recent level-crossing removals and station upgrades have further improved commute times and safety. In terms of amenities, Preston offers the best of both worlds: multicultural eateries, fresh food markets, and authentic character on one hand, and new cafes, supermarkets, and even rooftop bars on the other. Parks and schools are abundant, making it attractive for families too. In short, Preston is well-connected and convenient, without the premium of suburbs just 2–3 km closer to the city.
• Strong Demand & Growth Momentum: Buyer demand in Preston has been on the rise, pushing up property values steadily. For example, unit prices in Preston climbed 10.4% over a recent 12-month period apimagazine.com.au – a growth rate that outpaced many pricier northern suburbs. This reflects how younger buyers are targeting Preston for value and lifestyle. While houses in Preston now commonly fetch in the $1–1.2 million range (still lower than Northcote’s ~$1.5M+ median), apartments and townhouses remain relatively affordable, keeping first-home buyers interested. The rental market is also strong given Preston’s proximity to universities and the city. All indicators point to Preston being on a sustained upswing. As one commentator put it, “confidence is on the rise” in Melbourne’s outer northern ring, and Preston is a prime example of this trend.

For those seeking a neighbourhood with character, convenience, and capital growth potential, Preston is a compelling choice. It may have once been in the shadow of flashier suburbs, but the spotlight is now firmly on Preston as a rejuvenated hub that still has room to grow.

Geelong isn’t a suburb of Melbourne – it’s a city in its own right – but no discussion of Victorian hotspots would be complete without this booming regional centre. Located about 75 km south-west of Melbourne, Geelong is Victoria’s second-largest city and has consistently been a “regional capital growth leader since 2020”. What makes Geelong special is its blend of metropolitan-style amenities with a relaxed coastal lifestyle. Over the past few years, Geelong has attracted waves of new residents, including families and remote workers seeking more space, as well as investors chasing growth outside Melbourne’s metro market.

Why Geelong?

• Affordable Coastal City Lifestyle: Geelong offers a seaside city lifestyle at a steep discount compared to Melbourne. Many Geelong suburbs have median house prices in the mid-$400,000s to $500,000s – roughly half of Melbourne’s median. For example, the suburb of Norlane (on Geelong’s northern fringe) has a median house price around $455k. Yet, Geelong provides what many capital cities do: a bustling CBD, shopping and dining precincts, quality schools and healthcare, and cultural attractions (museums, galleries, sports stadiums). On top of that, it sits on Waterfront Geelong with beautiful bay views and nearby surf beaches along the Great Ocean Road. This combination of affordability and lifestyle is drawing not just locals but also people from Melbourne (and even interstate) — essentially, Geelong is absorbing some of the population and housing demand that might otherwise push into Melbourne.
• Infrastructure & Economic Growth: Geelong’s growth has been underpinned by significant infrastructure investment and a diversifying economy. The city has benefited from government decentralization (several government agencies and departments now have offices in Geelong) and private sector growth in industries like healthcare, education, and advanced manufacturing. According to analysts, Geelong’s strategic planning and infrastructure investment have sustained an “affordable and innovative” property market with strong demand for detached houses. Transport links are a big plus: the V/Line rail service puts Geelong roughly an hour from Melbourne by train, and ongoing upgrades to the Princes Freeway make the drive faster. There’s also talk of future fast-rail projects that could cut the commute down further. Locally, projects like the redevelopment of Geelong’s waterfront, the expansion of the Geelong Hospital and Deakin University campus, and the upcoming Spirit of Tasmania ferry terminal are boosting jobs and confidence. The Hotspotting report named Greater Geelong as one of the top 3 Victorian locations (along with Frankston and a Melbourne inner area) for long-term property opportunity, highlighting its robust economy and housing affordability.
• Population Growth & Housing Demand: Geelong has been one of the big winners from recent population movements. During the pandemic years, many Melburnians relocated to regional areas, and Geelong was a prime beneficiary with an influx of new residents seeking more space and remote-work flexibility. That trend continues; with Melbourne’s outer suburbs becoming pricier, some buyers are choosing Geelong as an alternative that still allows for commuting when needed. The rental market in Geelong remains very tight (vacancy rates in some parts of the city are under 1%), and buyer demand for family homes is high. First-home buyers find they can enter the market in Geelong for a price that would only buy a small apartment in Melbourne. This strong demand is reflected in property values: Geelong’s prices held up well even when other regions dipped, and the city is now firmly in a growth phase again. Experts note that Geelong was one of the few regional markets to show consistent positive growth while others slowed, thanks to its scale and planning.

In summary, Geelong has positioned itself as the powerhouse of regional Victoria – a city offering affordability, lifestyle, and growth. Its inclusion in the national “best buys” rankings for 2025 underscores the confidence analysts have in Geelong’s future. For anyone open to investing or settling outside Melbourne’s metro area, Geelong is an obvious contender with a very promising outlook.

Bendigo, a historic city in central Victoria, is proving that regional markets can offer just as much excitement as Melbourne. Located about 150 km north-west of Melbourne, Bendigo is a thriving regional centre with a rich gold rush heritage. In recent years, Bendigo saw a surge in property prices from 2020 to 2022, followed by a bit of a breather. Now, it appears the city is gearing up for a “second wind” in its property cycle, making it an opportune time for investors and homebuyers to take notice once again.

Why Bendigo?

• High Rental Yields & Investor Appeal: One of Bendigo’s biggest draws for investors is its strong rental yields. While rental yields in Melbourne might hover around 2–4%, Bendigo’s yields are considerably higher – on the order of 6% to 7% in many cases. This is because home prices are relatively low while rents have been climbing, driven by steady tenant demand. In fact, regional centres like Bendigo and Wodonga currently offer some of the best yields in Victoria, which has prompted a return of investors to these markets. For example, a house that might cost $500,000 in Bendigo can fetch a solid rent, making it easier to positively gear or at least neutrally gear the investment. Such healthy returns are increasingly hard to find in metro areas.
• Affordability & Pro-Growth Environment: Housing in Bendigo is very affordable by state standards – median house prices are generally in the mid-$500k range (and you can find entry-level homes or units well under $500k). This level of affordability, combined with Bendigo’s livability (good schools, healthcare, shopping, and cultural events, all in a city of ~125,000 people), is attracting both first-home buyers and retirees to the area. Local government attitudes also make a difference: Bendigo’s councils are reputed to be more open to development and new housing projects than many metropolitan councils. That means fewer planning roadblocks for subdividing land or building new estates, which can spur growth and keep supply meeting the demand. It’s a business-friendly climate that property investors find encouraging.
• Future Growth Drivers: Bendigo’s property market fundamentals point to a city on the rise again. Experts describe Bendigo as a typical “‘second-wind’ market,” poised to rise again after major 2020–2022 growth and a recent pause. The pause in price growth has allowed buyers to catch their breath, but indicators suggest the next upward phase is coming. Vacancy rates in Bendigo are extremely low – on the order of 0.5% in some popular suburbs – signalling a tight rental market and unmet demand for housing. The city’s population is projected to keep growing (from about 125k now to 155k within a decade), which will fuel housing needs. There are also infrastructure positives: Bendigo has its own railway connection to Melbourne (with plans slowly progressing to improve regional rail). The continued expansion of La Trobe University’s Bendigo campus and the recent development of a new hospital are boosting employment locally. All these factors lay groundwork for sustained capital growth in the coming years. It’s worth noting that Bendigo was named among the top 10 places in Australia to buy in 2025 by Hotspotting analysts, highlighting that nationwide observers see big potential here.

Bendigo combines the charm and ease of regional living with economic vibrancy and growth-friendly conditions. For investors seeking yield and long-term growth outside the capital cities, or for homebuyers who value community and space, Bendigo shines as a golden opportunity in Victoria’s property landscape.

Wodonga – a regional city on Victoria’s northern border – has also been flagged as an upcoming hotspot. It’s one of the few places left where you can still buy a quality four-bedroom home for around $600,000– a price point that simply doesn’t exist in Melbourne now. Part of the twin city of Albury-Wodonga, this area is experiencing a surge in buyer activity across the board: first-home buyers, investors, retirees, and downsizers are all active. With very few rentals available and rising demand, the growth is spreading outward – even the fringe suburbs around Albury-Wodonga are seeing spillover interest as people expand their search for affordable homes. Wodonga’s blend of affordability, lifestyle (proximity to the Murray River and snowfields), and improving connectivity (the Hume Highway and rail link put it about 3 hours from Melbourne) make it another regional market to keep an eye on alongside Bendigo and Geelong.

Victoria’s property landscape in 2025 is defined by opportunity outside the traditional inner-city enclaves. The up-and-coming suburbs and regional centers profiled here – Frankston, Sunshine, Preston, Geelong, and Bendigo – each demonstrate how a mix of affordability, infrastructure investment, and lifestyle improvement can ignite a real estate boom. These areas are benefitting from factors like new transport links, population inflows, and urban renewal, which together lay the groundwork for sustained capital growth. It’s telling that Victoria features so prominently in national hotspot reports, outshining other states in terms of future growth prospects.

For first-home buyers, these locales offer a chance to get a foothold in the market without sacrificing too much on location or amenities. For property investors, they present the potential for strong returns – whether through above-average rental yields (as seen in regional cities) or solid price appreciation as demand catches up to supply. Of course, it’s important to approach any investment with due diligence. Consider each area’s specific dynamics: employment opportunities, upcoming supply of new housing, and any policy factors. (For instance, investors should note that Victoria currently has some of the highest property taxes in Australia – an aspect highlighted by experts as a consideration when investing in the state.)

Overall, the renewed strength of Victoria’s market in 2025 suggests that those who move early in these growth areas could reap significant rewards. Melbourne’s relative affordability compared to other capitals, combined with big infrastructure rollouts, has created a window of opportunity where outer suburbs and key regional hubs are set to flourish. If you’re looking to buy, it may be a good time to explore these hotspots before they fully hit their stride.

Ready to take the next step? Whether you’re eyeing a beachside fixer-upper in Frankston or an investment unit in Geelong, staying informed is your best strategy. Keep an eye on local developments and market trends, and don’t hesitate to seek expert advice tailored to your goals. Are you considering any of these areas, or do you have another suburb on your radar? Feel free to share your thoughts or experiences in the comments below – the property market is always evolving, and we’d love to hear your perspective on Victoria’s next property hotspots!