Melbourne’s property market can feel overwhelming
for first home buyers. Prices in inner suburbs
are eye-watering and the outer ring feels too far
from everything. But there are still genuine
opportunities if you know where to look.
Here’s our 2026 guide to Melbourne suburbs
worth considering if you’re buying your first
home with a budget under $700,000.
What We’re Looking For
The suburbs in this guide have been selected based on:
- Median house or apartment prices accessible
on a first home buyer budget - Good public transport connections to the CBD
- Access to schools, shops, and amenities
- Ongoing infrastructure investment
- Growth potential based on current trends
This is general information only — always do
your own research and engage a buyer’s agent
or property advisor before purchasing.
Inner West
Sunshine — median apartment ~$450,000
Sunshine has transformed significantly over
the past decade. Strong rail connections to
the CBD, significant infrastructure investment,
and a diverse community make it one of the
most compelling value propositions in
metropolitan Melbourne. The suburb is
benefiting from the Metro Tunnel’s downstream
effects and ongoing urban renewal.
Watch for: older apartment stock may have
maintenance issues — always get a building
inspection.
Footscray — median apartment ~$480,000
Footscray’s cultural vibrancy and proximity
to the CBD (8km) have driven strong price
growth but entry-level apartments remain
accessible. Excellent tram and train
connections, a thriving food scene, and
ongoing development make it attractive
for young buyers.
Watch for: some older buildings have
cladding issues — check OC documents carefully.
North
Preston — median apartment ~$500,000
Preston offers a genuine village feel with
High Street retail, excellent tram connections,
and relatively affordable entry points compared
to neighbouring Northcote and Thornbury.
The suburb has seen consistent demand from
young professionals priced out of inner
north favourites.
Reservoir — median house ~$650,000
One of Melbourne’s most affordable inner-north
options for house buyers. Reservoir has
excellent train connections, a strong community
feel, and has benefited from spillover demand
from Preston and Northcote. Still achievable
for first home buyers with a $650,000–$700,000
budget.
East
Ringwood — median apartment ~$480,000
Ringwood’s Eastland redevelopment and
excellent train connections (35 mins to CBD)
make it a compelling option for east-side
buyers. The area has a genuine town centre
feel and strong amenity. Apartment stock
is relatively modern and well maintained.
Boronia — median house ~$680,000
Boronia offers genuine house-and-land value
for first home buyers in the outer east.
Train connections to the CBD, proximity
to the Dandenong Ranges, and a strong
local community make it worth considering
for buyers prioritising space over proximity.
South East
Dandenong — median apartment ~$380,000
Dandenong represents some of Melbourne’s
best value for first home buyers willing
to travel 35km from the CBD. Strong train
and bus connections, significant government
infrastructure investment, and Melbourne’s
most affordable metropolitan apartment
prices make it compelling for budget-conscious
buyers.
Springvale — median apartment ~$420,000
Adjacent to Dandenong, Springvale offers
similar value with a strong community identity.
Good train connections and proximity to
Monash University make it attractive for
buyers and investors alike.
North West
Broadmeadows — median house ~$550,000
Broadmeadows is undergoing significant
transformation with major government
investment in infrastructure and urban
renewal. For first home buyers with a
longer time horizon it offers some of
metropolitan Melbourne’s best value.
Tullamarine — median apartment ~$430,000
Proximity to the airport employment precinct,
improving retail amenity, and affordable
prices make Tullamarine worth considering
for buyers working in the north west corridor.
What First Home Buyers Should Know
Use your grants and concessions
Remember the First Home Owner Grant
($10,000 for new homes) and stamp duty
exemption (properties under $600,000)
can significantly reduce your upfront costs.
Don’t overlook apartment quality
In all of these suburbs older apartment
stock exists alongside newer buildings.
Always review owners corporation documents
and get a building inspection. Cladding
issues are present in some buildings
across all Melbourne suburbs.
Think about resale
Your first home is rarely your forever home.
Consider what will make the property
attractive to future buyers — transport,
schools, amenity, and suburb trajectory
all matter.
Get finance sorted first
Know exactly what you can borrow before
you start inspecting. A mortgage broker
can help you understand what grants and
schemes you’re eligible for and what
your actual purchasing power is.
Next Steps
If you’re a first home buyer in Melbourne:
- Speak to a mortgage broker to understand
your borrowing capacity and eligibility
for grants and schemes - Engage a conveyancer early to review
contracts before you sign - Get a building and pest inspection on
any property you’re serious about - Consider a buyer’s agent if you’re
unfamiliar with the auction process
Disclaimer: Median prices are approximate
and based on general market data. Property
prices change frequently. This article is
for general informational purposes only
and does not constitute financial or
property advice. Always conduct your own
research and engage qualified professionals
before making any property purchase decision.
Vic Property Guide 
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