Melbourne’s eastern suburbs continue to be one of the most sought-after regions for property buyers, with demand showing resilience despite economic shifts. The area’s appeal lies in its well-established communities, strong school zones, and a blend of modern and heritage homes that cater to a wide range of buyers.

In 2025, the market is experiencing steady growth, driven by a mix of high-net-worth buyers, young professionals and investors seeking long-term gains. Let’s explore how home prices and demand are shaping the real estate landscape in the east.

The median house price in Melbourne’s eastern suburbs has continued to climb, with premium pockets seeing annual growth rates of 5-8%. Suburbs like Camberwell, Surrey Hills and Glen Iris have recorded some of the highest price increases due to their proximity to top schools and transport links.

According to recent market data:

Apartments and townhouses in well-connected suburbs have also remained in demand, with new developments in areas like Hawthorn and Kew appealing to downsizers and investors.

Several buyer segments are actively shaping the eastern suburbs property market in 2025.

Families looking for larger homes in top-tier school zones are a major driver of demand. Private schools in suburbs like Camberwell, Balwyn and Canterbury attract buyers who are willing to pay a premium for proximity to education. Properties in these areas often sell above the asking price due to limited availability.

Investors are returning to the Melbourne market, particularly in suburbs with strong rental demand and long-term capital growth potential. With rental yields increasing in areas like Box Hill and Doncaster, more investors are securing homes that cater to young professionals and students.

Downsizers are seeking luxury apartments and townhouses with high-end finishes, security, and proximity to shops and cafes. Suburbs like Hawthorn and Malvern have seen an increase in boutique developments catering to this demographic.

Interest from overseas buyers remains steady, particularly in suburbs known for large land sizes, modern new builds and proximity to top schools. Balwyn, Box Hill and Glen Waverley continue to attract international buyers looking for investment properties or family residences.

Melbourne’s eastern suburbs remain a stable and high-performing segment of the property market. While rising interest rates and economic uncertainty have impacted some areas, demand for premium homes and well-located properties has ensured steady growth.

Key factors influencing future price trends include:

Experts predict that property values will continue to appreciate, particularly in the high-end market where buyer demand remains strong. Buyers looking to invest in long-term capital growth are still seeing Melbourne’s eastern suburbs as one of the best areas for stability and appreciation.

Melbourne’s eastern suburbs are holding firm as a top real estate hotspot, with demand driven by prestige buyers, investors, and families seeking access to top-tier schools and premium amenities. While price growth may stabilise in some areas, desirable properties will continue to command high prices, making this region a strong choice for homebuyers and investors alike.

For those considering a knockdown rebuild or a luxury home transformation, now is an ideal time to explore opportunities in Melbourne’s most sought-after neighbourhoods.

Stay ahead with exclusive insights on Melbourne’s property trends, innovative design tips and expert advice delivered directly to your inbox. Join us for the latest trends in luxury living and property insights.