Melbourne’s median house price is $929,715, but the city’s wealthiest suburbs paint a very different picture. These elite neighbourhoods represent Melbourne’s property market at its finest. This article explores the top 10 richest suburbs in Melbourne and unique features that make them the city’s most desired locations.
Toorak: Melbourne’s Crown Jewel of Luxury Real Estate
Toorak, located 5 kilometres southeast of Melbourne’s CBD, reigns supreme as Australia’s most luxurious real estate market. This elite suburb has earned its reputation as Melbourne’s most prestigious neighbourhood and ranks among the nation’s finest. The name Toorak now represents wealth and status, setting the standard for luxury living in Australia’s property landscape.
Historical Evolution of Toorak’s Wealth
Toorak’s rise to Melbourne’s wealthiest suburb started in 1849. The area soon drew wealthy merchants, pastoralists, and politicians. The 1880s land boom saw many grand Italianate mansions spring up across Toorak. After East Melbourne and St Kilda, Toorak and Brighton became the preferred spots for wealthy residents. The 1890s economic depression hit the suburbs hard, pushing many wealthy landowners into bankruptcy. Yet Toorak managed to keep its status as Melbourne’s ‘old money’ hub.
The post-World War II boom brought rising living standards and land values. A new generation of wealthy individuals sought expensive homes and apartments in Toorak. Large properties were split up, and some original mansions were used for flats, townhouses, and apartments.
Current Property Market Trends and Prices
Toorak leads Melbourne’s property prices. The median house price is AUD 7,564,679, and houses bring in average weekly rents of AUD 1,452. Unit prices average AUD 1,743,048, with weekly rents of AUD 955.
Investment returns tell different stories for houses and units. Houses have seen negative capital growth of -23.01%, with rental yields at 1.49%. Units show better results with 3.64% growth and rental yields of 2.84%.
The property market stays active, with 128 houses and 184 units sold last year. Houses spend about 31 days on the market, while units take 35 days to sell.
Toorak’s elite streets command remarkable prices:
- St Georges Road has properties worth up to AUD 122.32 million
- Albany Road features homes valued above AUD 61.16 million
- Lansell Road and Irving Road rank among Melbourne’s finest addresses
Brighton: Bayside Opulence and Beachfront Prestige
Brighton sits along the beautiful shores of Port Phillip Bay, just 11 kilometres southeast of Melbourne’s CBD. This rich Melbourne suburb blends historic charm with coastal luxury and remains one of Melbourne’s most expensive areas.
The Rise of Brighton as a Wealthy Enclave
Brighton’s story began in the mid-19th century as a seaside getaway for Melbourne’s elite. In the late 1840s, the area became a favourite spot for wealthy Melburnians to build their beachfront homes. Henry Dendy’s Special Survey of 5120 acres became the foundation for private development in 1842. Affluent residents quickly claimed generous building sites that offered sea bathing opportunities.
The 1859 railway arrival strengthened Brighton’s appeal. New stations at Bay Street, North Brighton, and Church Street attracted houses and shops to these areas. Brighton managed to keep its low-rise atmosphere and genteel conservatism through the years, securing its place as one of Melbourne’s wealthiest locations.
Lifestyle and Community Atmosphere
Residents enjoy a luxurious coastal lifestyle with stunning beaches, sprawling parks, and a vibrant community. The 82 colourful Brighton Bathing Boxes at Dendy Street Beach have become both a tourist magnet and a symbol of the area’s coastal charm.
Church Street stands as the hub of upscale shopping. Designer boutiques, specialty stores, and gourmet restaurants line this prestigious strip. Bay Street serves daily needs with supermarkets, bakeries, and local services.
Brighton’s population reflects its wealthy status. Most of the 23,254 residents are high-income professionals, executives, and families. Most people are between 40 and 59 years old, and 74% own their homes while 26% rent.
Top schools add to Brighton’s appeal. Brighton Grammar School and Firbank Grammar School provide excellent facilities and strong academic programmes. These features make Brighton a top choice for wealthy families who want premium beachside living with great amenities and strong community ties.
Canterbury: Heritage Homes and Exclusive Living
Canterbury is 11 kilometres east of Melbourne’s CBD and ranks fourth among the city’s most expensive suburbs. The suburb’s development started in the 1880s. This historic neighbourhood has always been one of the city’s premium real estate spots, with a median house price now exceeding AUD 4.76 million.
Canterbury’s Rise to Affluence
Canterbury’s rise to become one of Melbourne’s wealthiest suburbs began in the late 19th century. The elite suburb took off in the early 20th century, with its most significant growth happening in two phases—before World War One and between the wars. The extension of the electric tramway along Riversdale Road in 1916 sped up this growth.
The suburb’s crown jewel is its famous “Golden Mile”—a prestigious stretch of Mont Albert Road between Balwyn Road and Burke Road. This exclusive area has 152 properties, each worth more than AUD 1.5 million. Monomeath Avenue and Victoria Avenue are the most sought-after streets, known for their beautiful tree-lined boulevards that create stunning leafy canopies.
Kooyong: Small but Mighty in Melbourne’s Property Hierarchy
Kooyong sits just 7 kilometres southeast of Melbourne’s CBD. This small elite suburb stands tall among Melbourne’s wealthiest areas. With only 822 residents, this ultra-exclusive pocket packs incredible wealth and prestige into its modest boundaries.
The Development of Kooyong’s Exclusive Status
Wealth, privilege, and prestige have always been Kooyong’s hallmarks. The suburb has managed to keep its reputation as an old-money enclave. Many grand homes here date back to the late 19th and early 20th centuries.
The Gardiners Creek (Kooyongkoot) area adds charm to Kooyong’s appeal. This waterway creates a vital biodiversity corridor with valued open spaces and recreation spots. Such natural beauty adds real value to the suburb’s prestigious reputation.
Investment Potential and Future Outlook
Kooyong makes a strong investment case even with modest rental returns. Houses here have grown by 9.2% on average over recent decades, and recent data shows yearly compound growth for houses hitting 82.3%.
Low vacancy rates of 1.5% show strong rental demand. Properties rarely come up for sale here—last month, just one house and six units were listed.
Kooyong’s appeal to investors comes from its exclusive nature. Limited land, heritage protection, and strict planning rules keep supply tight. Properties sell quickly. Growing demand helps Kooyong stay one of Melbourne’s most exclusive and valuable residential areas.
East Melbourne: Historic Elegance Meets Modern Luxury
East Melbourne stands out as one of Melbourne’s most prestigious inner-city neighbourhoods. The elite suburb showcases a fantastic mix of 19th-century heritage homes and modern luxury residences. This blend of old and new has made it one of the Melbourne’s wealthiest suburbs.
From Colonial Past to Present Prestige
East Melbourne’s wealth story started in the mid-19th century when builders completed the first private house in 1853. Victorian-era architecture dominates the streets with grand heritage homes that tell stories from the gold rush period. Parliament House, the Old Treasury Building, and St Patrick’s Cathedral helped shape the suburb’s prestigious character early on. Little Parndon adds to this rich heritage – a two-storey brick house built in 1862 became home to Austrian painter Eugene von Guerard.
Proximity to CBD and Its Impact on Values
Location drives East Melbourne’s property values more than anything else. The suburb sits next to Melbourne’s CBD, giving residents quick access to the city’s business, culture, and entertainment. Quiet residential streets blend perfectly with city convenience. Multiple tram and bus routes create continuous connections throughout Melbourne.
Parks, Gardens and Lifestyle Amenities
Public open spaces cover an impressive 46% of East Melbourne. The 175-year-old heritage-listed Fitzroy Gardens feature beautiful elm-lined paths and Victorian design. These gardens connect with Treasury Gardens and Parliament Gardens to create a green belt around Melbourne’s city centre.
Sports and entertainment thrive here, too. The world-famous Melbourne Cricket Ground, Melbourne Park, and AAMI Park call this suburb home. Residents can stay active at Powlett Reserve Tennis Centre and outdoor gym facilities.
Middle Park: Beachside Charm with Premium Price Tags
Middle Park sits between Port Phillip Bay and Albert Park Lake. This rich Melbourne suburb has become one of the city’s best performers. The area saw a remarkable 4% gain in median house prices while other luxury neighbourhoods faced substantial declines. This compact elite suburb now ranks among Melbourne’s wealthiest suburbs through steady value growth and exceptional lifestyle appeal.
The Rise of Middle Park’s Affluence
The area started as a military reserve and rifle range from 1861 to 1877. Middle Park’s growth led to narrow-frontage lots, with construction continuing past the 1890s. The streets showcase a beautiful mix of Edwardian and Victorian architecture that earned heritage protection in 1987. The suburb’s value has grown remarkably over the last several years. Property prices have risen more than 7000% since 1975 from a median of AUD 46,710.65. The suburb is one of Melbourne’s wealthiest suburbs.
Lifestyle Benefits of This Bayside Gem
Middle Park residents live just 5 kilometres from the CBD. Beaconsfield Parade offers beautiful bay views and beach access. The Armstrong Street village creates a community feel with its boutique shops, cafés and restaurants. Middle Park Primary School ranks among Victoria’s finest schools, with a 92/100 score in 2015. Peaceful tree-lined streets combine with easy access to vibrant St Kilda and Albert Park to create an ideal living environment.
Balwyn: Eastern Suburban Elegance and Family Prestige
Balwyn sits 10 kilometres east of the CBD. This rich Melbourne suburb stands out with its tree-lined streets, grand-period homes, and excellent schools. The eastern suburban jewel blends elegant streetscapes with family-friendly features that attract affluent professionals and families.
Balwyn’s Transformation into an Elite Suburb
Balwyn changed remarkably through gentrification. The modest residential area evolved into one of Victoria’s most exclusive addresses. The suburb now ranks among the top 10 most expensive Melbourne suburbs. Beautiful streets showcase grand Edwardian and Georgian residences that highlight its upscale character.
Balwyn’s charm comes from its family-friendly environment. Almost half of all households here are couples with children. This family focus shapes the area’s growth, as properties blend practical family living with architectural beauty. The prestigious Balwyn High School zone drives property prices up. Families gladly pay premium prices to access top-tier education.
Hawthorn: Riverside Luxury and Academic Prestige
The Wurundjeri Willam clan of the Kulin nation first called Hawthorn home. This rich Melbourne suburb, just 6 kilometres east of the CBD, has grown into one of Melbourne’s most expensive areas. The riverside location combines rich history with modern luxury, drawing wealthy families looking for top-tier education.
Historical Development and Wealth Accumulation
Hawthorn’s rise to prosperity took off after it became a city in 1890. Wealthy residents moved here between the Victorian and Edwardian periods to escape Melbourne’s industrial zones. The creation of exclusive estates like Grace Park and St James Park cemented the suburb’s reputation for luxury.
Beautiful streets showcase Melbourne’s architectural progress through time. Harcourt Street displays an impressive collection of nineteenth-century mansions mixed with unique Federation designs. Grand properties like “The Hawthorns,” built before 1852, prove the suburb’s enduring wealth.
Malvern: Victorian Grandeur in Melbourne’s Inner East
Malvern stands as a discreetly wealthy enclave that Melbourne’s affluent residents prefer. Located 8 kilometres southeast of the CBD, this inner-eastern suburb blends historic charm with modern luxury. The area ranks as one of the most expensive Melbourne suburbs yet lacks the showiness of its prestigious neighbours.
Malvern’s Path to Affluence
The suburb grew into an upscale residential area, attracting wealthy Melbourne families who wanted refined city living. Grand Victorian and Edwardian homes line its tree-filled streets. Northbrook House perfectly shows this architectural grandeur—an 1888-89 Italianate villa that has kept its stunning stencilled and gilded ceilings.
The area’s exclusive nature has grown steadily through the years. It preserves its historic character while welcoming new luxury developments. Streets like Sorrett Avenue represent this mix perfectly. A notable double-storey Victorian residence hit the market for AUD 16.05-17.58 million.
Lifestyle and Community Appeal
This rich Melbourne suburb’s exceptional lifestyle offerings add to its lasting appeal. Malvern Station serves the Frankston, Dandenong, and Pakenham lines, providing great transport options. The 72 tram connects residents to Burke Road, St Kilda Road and Swanston Street.
The vibrant Glenferrie Road and Malvern Road host the main shopping areas. Residents enjoy boutique retail stores, gourmet cafés and upscale restaurants. Malvern Public Gardens and Central Park offer peaceful green spaces.
The demographics highlight the area’s wealth—69% of properties are owner-occupied, while 31% are rented. The community splits between families (52%) and single households (48%), with most residents aged 20-39 years. Top schools draw families to the area, which drives property demand and strengthens Malvern’s position among Melbourne’s wealthy suburbs.
Albert Park: Lakeside Living with a Premium Price
Situated between Albert Park Lake and the glittering seas of Port Phillip Bay, Albert Park is one of the rich suburbs in Melbourne. This charming neighbourhood combines historic character with excellent sporting facilities just 3km from the CBD, giving residents a perfect mix of peaceful lakeside living and city convenience.
The Transformation of Albert Park
Albert Park has seen remarkable changes over the last several years. The Australian Venue Company now invests AUD 5.20 million to reshape the scene at the iconic landmark once known as The Point. This project will create the Albert Park Lake House, a modern restaurant and function centre.
This project is part of a larger improvement plan. The Federal Government has invested AUD 7.64 million to upgrade changerooms, sports fields, and sailing facilities. The bold Shrine to Sea project, worth AUD 19.88 million, wants to build a boulevard connecting Domain Gardens to Port Phillip Bay through Albert and Kerferd roads.
Conclusion – Richest Suburbs in Melbourne
The median house prices in the most expensive Melbourne suburbs tell a fantastic story. These elite suburbs share unique features that make them Australia’s most desirable place to live.
The property market in these rich melbourne suburbs shows some interesting trends. Toorak and East Melbourne have taken recent hits, dropping 23.01% and 21.68% respectively. However, Kooyong has bucked the trend with an impressive 82.3% growth over the year. House rental returns stay modest at 1.5% to 2.3% since we primarily find owner-occupiers here.
These suburbs’ proximity to Melbourne’s CBD – most within 11 kilometres – keeps driving their value up. The lifestyle here is exceptional. Middle Park residents enjoy their beach, Albert Park has world-class sports facilities, and Hawthorn offers beautiful riverside living.
Limited housing availability, strong heritage protection, and decades-old community prestige keep these suburbs exclusive. Market ups and downs aside, their appeal never fades. Strong infrastructure, top-notch amenities, and wealthy buyers’ endless desire for the richest suburbs in Melbourne ensure their continued success.
Make sure to check out a similar article on 10 Richest Suburbs in Sydney!
Which suburb is considered the richest suburbs in Melbourne?
Toorak is regarded as Melbourne’s most luxurious suburb, known for its opulent mansions, high-end boutiques, and exclusive restaurants. With a median house price of over $7 million, it’s home to many of Australia’s wealthiest individuals.
What are some of the top-rated suburbs in Melbourne for luxury living?
Besides Toorak, other highly-rated rich Melbourne suburbs include Brighton, Canterbury, and Kooyong. These areas are known for their prestigious schools, heritage architecture, and proximity to desirable amenities.
Where do affluent families tend to live in Melbourne?
Affluent families often gravitate towards suburbs like Balwyn, Hawthorn, and Brighton. These areas offer a combination of excellent schools, spacious homes, and family-friendly environments while maintaining proximity to the city.
What is the current record for the most expensive property sold in Melbourne?
The most expensive property sold in Melbourne (and Australia) is reportedly a Toorak mansion known as the Coonac estate, which sold for approximately AUD 229.35 million, setting a new benchmark for luxury real estate in the country.
How have property values in Melbourne’s premium suburbs performed recently?
Property values in Melbourne’s premium suburbs have shown mixed performance recently. While some areas like Kooyong have seen significant growth, others like Toorak and East Melbourne have experienced price corrections. However, these suburbs generally maintain long-term appeal and value due to their prestigious locations and limited housing stock.