Finder’s Property Investment Index Melbourne

Australians love property, but for many, figuring out where to invest is the hardest part. Finder's Property Investment Index uses a range of data inputs to predict price growth in each suburb across Australia's major cities. Property Investment Index pages for Sydney, Brisbane, Adelaide, Perth and Hobart are also available.

What is the Property Investment Index?

The Property Investment Index is a model that ranks suburbs based on their investment potential. Suburbs are scored out of 100, with 100 indicating very high predicted price growth and 0 indicating very low or negative predicted price growth.

The final score is calculated based on 3 factors:

• Market demand (maximum 35 points): This is based on sales turnover, average days on market, building approvals and distance to the CBD.
• Population (maximum 40 points): This is based on population, population growth, income, income growth and unemployment rates.
• Property (maximum 25 points): This is based on historical property price growth and current property prices.

An additional 15 points are given to suburbs that have had at least 1 property sale over the past 12 months. The number of points for each suburb is capped at 100.

The index is intended to be an indicator of relative price growth, rather than of property prices themselves. A high score does not necessarily mean that a suburb will have the highest house prices but that we can expect strong growth in that area.

Note: The methodology was adjusted in August 2024 to remove all suburbs which do not have currently available Cotality (formerly CoreLogic) sale price data for houses or units, as applicable. This has resulted in a number of smaller and more regional areas with few property sales not receiving a score. These areas will appear again once Cotality (formerly CoreLogic) reports sale price data for those areas.

Houses

Top scoring suburbs by price point

Units

Top scoring suburbs by price point

Search the Property Investment Index by suburb

How the Index works

Finder's Property Investment Index uses a range of data inputs to predict price growth in each suburb across Australia's major cities. These data inputs are weighted to produce a score out of 100, with 100 indicating very high predicted price growth and 0 indicating very low or negative predicted price growth.

In addition to the weighted inputs listed below, an additional 15 points are given to suburbs that have had at least 1 property sale over the past 12 months.

Investor activity in Victoria

Prior to the pandemic, investor activity in Victoria had been trending lower since 2017. When COVID-19 began, this decline continued before investor home loans rebounded strongly in the following years.

Investor home loans in Victoria peaked at a record $9.75 billion in the December quarter 2025. In the June quarter 2026, the total value of new investor loans was $8.16 billion, up 5.8% on the March quarter but still 16.3% below that peak and 8.3% higher than the same time last year.

The sharp pullback following the December 2025 high highlights ongoing volatility in investor lending, as higher borrowing costs and changing market conditions continue to influence activity across the state.

Property sentiment in Melbourne

About 53% of Melbourne residents expect property prices in their local area to increase in the next 12 months, according to Finder's Consumer Sentiment Tracker. This includes 17% who think price growth will be significant. On the other hand, 18% believe prices in their area will fall over the next year.

• Methodology

  Finder's Property Investment Index uses a range of data inputs to predict price growth in each suburb across Australia's major cities. Each suburb is given a score out of 100, with 100 indicating very high predicted price growth and 0 indicating very low or negative predicted price growth.

  Our model used 12 data inputs, including property price growth, unemployment rates and income growth (see table above for details). Each of the inputs is scored to distribute the data between 0 and 100. For instance, a suburb with an unemployment rate of 0% would receive a score of 100 for the unemployment metric. These 12 sub-scores are then weighted to calculate an overall score between 0 and 100. An additional 15 points are awarded to suburbs that have had at least 1 property sale over the past 12 months.

  Houses and units are analysed separately so that each suburb is assigned 1 index score for houses and 1 for units. There is less property data available on units, particularly in suburbs where houses make up the majority of sales. This is why some suburbs are missing data on units.

  In cases where a data point (e.g. price growth) is not available for either units or houses within a suburb, the available data is used for both property types. For example, if sales turnover for units is unavailable in a suburb, the sales turnover figure for houses is assumed. If the data point is missing from both units and houses, the suburb is given a score representing the 17th percentile of all properties (i.e. one-third of the average).

  Note that the suburb-specific Cotality (formerly CoreLogic) data we use lags by 3 months. This means that data released in May reflects the property market in February.

• Assumptions

  • The index uses historical data to predict future changes. We assume past population, income and property price growth are indicative of future growth.
  • We analyse data by suburb, but in some instances, data is not available at the suburb level. In this case, we use the equivalent data at the postcode level instead.
  • Data used on building approvals is at the LGA level rather than the suburb level.

• Disclaimer

  Finder's Property Investment Index analyses the latest available data and is provided as a guide only. It should not be relied on as financial advice or to make financial decisions. This data and information are provided for information purposes only. You should seek personal advice from your financial planner or property investment advisor before making purchase decisions.

Written by

Graham Cooke

Head of Consumer Research

Add to Preferred Sources

Graham Cooke is Finder’s Head of Consumer Research, overseeing data analysis on consumer spending and saving habits. He is a passionate advocate for financial literacy and consumer rights, regularly appearing on major TV networks like ABC News and 7 News, and contributing to top outlets like Yahoo Finance and Money Magazine. Graham holds a Bachelor of Science (Hons) in Physics, as well as Tier 1 and Tier 2 certifications (RG 146) that comply with ASIC standards. See full bio

Graham's expertise

Graham has written 49 Finder guides across topics including:

• Home loans and the housing market
• Credit cards & personal finance
• Finder Awards
• Retail economics & FMCG
• Travel
• Finder's RBA Cash Rate Survey, Consumer Sentiment Tracker, Cost of Living Pressure Gauge and Property Investment Index