Where To Buy In Melbourne In 2026? Top 5 Affordable Suburbs + Bonus

Where to Buy in Melbourne in 2026 --- Where should you buy property in Melbourne in 2026? In Episode 23 of The Property Portfolio Podcast, Parag Dixit and Julius break down 5 affordable Melbourne suburbs worth watching, plus 1 bonus suburb buyers and investors should not ignore. Melbourne has underperformed compared to markets like Perth, Adelaide and Brisbane, but that does not mean every part of Melbourne is weak. In this episode, the discussion focuses on specific suburbs where affordability, tight supply, owner-occupier demand, rental demand, infrastructure and long-term growth potential may create better opportunities. The episode covers Melbourne’s current property market, why some investors are exiting Victoria, why rental stock may tighten, how interest rates could change buyer sentiment, and which suburbs may suit first home buyers, investors, upgraders and long-term property buyers. Suburbs discussed in this episode include Derrimut, Deer Park, Lalor, Thomastown, Epping and bonus suburb Carrum Downs. If you are researching the Melbourne property market, affordable suburbs in Melbourne, property investment in Melbourne, first home buyer suburbs, rental yield, capital growth, land banking or where to buy property in Australia, this episode will help you understand what to look for before making a property decision. Topics covered: - Melbourne property market 2026 - Where to buy in Melbourne - Best suburbs to buy in Melbourne - Affordable suburbs in Melbourne - Melbourne property investment - Melbourne investment suburbs - First home buyer suburbs Melbourne - Rental yield Melbourne - Capital growth suburbs Melbourne - Derrimut property market - Deer Park property market - Lalor property market - Thomastown property market - Epping property market - Carrum Downs property market - Australian property investing - Property investment Australia Watch more episodes of The Property Portfolio Podcast for Australian property market updates, suburb research, lending insights and long-term property investment strategy. Disclaimer: This podcast is for general information only and does not provide personal financial advice. Please speak with a qualified professional before making property, finance or investment decisions. --- TIMESTAMPS 00:00 | Introduction 04:03 | How Melbourne’s market is underperforming 06:51 | Why investors are exiting, and rental stock is shrinking 08:51 | Melbourne as a “pocket city” and the role of interest rates 11:19 | How the top 5 affordable Melbourne suburbs were chosen 11:56 | Suburb 1 – Derrimut: landlocked growth hotspot with soaring unit prices 19:16 | Suburb 2 – Deer Park: land banking, subdivision, and first-home buyer demand 26:50 | Suburb 3 – Lalor: last affordable inner-north house pocket with high competition 33:59 | Suburb 4 – Thomastown: big blocks, granny flats, and ripple effects from Reservoir 41:08 | Suburb 5 – Epping: landlocked healthcare hub with strong infrastructure 47:50 | Bonus suburb – Carrum Downs: coastal lifestyle, tight vacancies, and strong yields 55:35 | Final outlook and key takeaways for Melbourne investors