A Practical Guide For Foreign Buyers, Malaysian Parents & Property Investors
One of the most common questions we hear from overseas buyers is: "Which area is the best to live in Melbourne?"
It's a fair question — especially when you're buying from overseas, investing significant capital, or purchasing a home for your children studying in Australia.
But after years of working with Malaysian families and investors, here's what we've learned:
There is no single "best" area in Melbourne.
There is, however, a best approach — and understanding that difference can save you from making an expensive mistake. This guide is written specifically for Malaysian parents and investors, based on real experience rather than generic suburb rankings.
What Overseas Buyers Really Mean When They Ask This Question
When international buyesr ask about the "best" area, they're usually concerned about:
- Proximity to top universities (especially University of Melbourne and RMIT)
- Long-term capital growth
- Reputable buildings and developers
- Completion timing and certainty
- The reputation and safety of the suburb
These are all sensible priorities. The mistake many buyers make, however, is assuming that closer automatically means better — particularly when it comes to universities.
Universities, Public Transport & Why Proximity Matters Less Than It Used To
University of Melbourne and RMIT University remain the two biggest drivers for Malaysian buyers in Melbourne. Traditionally, this led many parents to focus narrowly on areas immediately surrounding these campuses — particularly Carlton. While this made sense years ago, Melbourne's public transport network has evolved significantly.
With major infrastructure upgrades, including the Melbourne Metro Tunnel, students can now reach universities quickly and easily from a much wider range of locations.
What this means in practice:
- Being on a direct tram or train line is often more valuable than walking distance
- Areas slightly further out can offer better lifestyle, superior buildings, and stronger long-term appeal
- Properties with good transport access also perform better as future rental investments, attracting a broader tenant pool
In other words, transport connectivity safeguards both today's liveability and tomorrow's rental demand.
CBD vs Carlton vs Southbank vs South Melbourne: A Realistic Comparison
Melbourne CBD
The Melbourne CBD remains one of the most popular choices for international and Malaysian buyers — and for good reason:
- Direct access to universities, transport, retail, dining and amenities
- Strong rental demand from students and professionals
- Wide range of new, high-quality apartment projects
- Convenience for students living independently
While CBD apartments haven't always delivered the highest capital growth historically, Melbourne is currently experiencing a housing supply shortage, particularly for well-designed, larger, high-quality apartments. This supply-demand imbalance supports long-term value, especially for premium stock.
Southbank
Southbank appeals to buyers looking for:
- Lifestyle-driven living
- River and skyline views
- Proximity to the CBD without being in the commercial core
It remains popular with both students and young professionals, making it a strong dual-purpose option.
South Melbourne
South Melbourne is often recommended to international families who want:
- Close proximity to the CBD
- A more traditional suburb feel
- Lifestyle amenities, markets, cafes and open spaces
It's particularly well-suited to families buying a property that will serve both as a residence for children and as a long-term family asset.
Carlton
Carlton is frequently requested because of its proximity to the University of Melbourne. However, in our experience, it can be a safe but limited choice.
The lifestyle offering isn't what it once was, and compared to the CBD, Carlton often provides:
- Fewer high-quality new developments
- Less long-term flexibility
- Lower appeal outside the student market
Proximity to a university alone is no longer enough.
Why Project Quality Matters More Than Postcode
One of the most important insights for overseas and Malaysian buyers is this: the quality of the project matters more than the suburb.
High-quality developments:
- Hold value better over time
- Appeal more strongly in the resale market
- Attract both tenants and owner-occupiers
- Stand out during periods of market oversupply
When it comes time to sell, Malaysian owners are often selling to local Australian buyers. Australians focus heavily on:
- Apartment size and layout
- Build quality and finishes
- Natural light and liveability
- Facilities and long-term maintenance
A well-designed apartment in the right building will always outperform an average apartment in a "good" suburb.
FIRB Rules & Why Apartments Are the Reality for Foreign Buyers
Australia has strict regulations for foreign buyers. Malaysians purchasing property generally require FIRB (Foreign Investment Review Board) approval, which limits purchases to:
- Brand new properties
- Off-the-plan or newly completed developments
This naturally means:
- Apartments are the most accessible property type
- Most purchases are new or near-new stock
- Developer reputation and delivery track record are critical
For this reason, Malaysians place strong emphasis on:
- Reputable developers
- Quality fixtures and finishes
- Practical layouts
- Core amenities such as gyms, pools, security and concierge services
Safe vs Smart: Understanding Risk in Melbourne Property
Melbourne is one of Australia's most stable property markets. Buyers don't need to be overly conservative to achieve security.
While some choices may feel "safe," they can also limit:
- Lifestyle appeal
- Future buyer demand
- Long-term growth potential
With housing supply unable to keep pace with demand, large, well-designed, high-quality apartments with a clear point of difference are increasingly future-proof.
A Real Malaysian Family Case Study
One Malaysian family purchased a three-bedroom apartment in South Melbourne over 15 years ago while their children were studying in Australia.
Since then:
- Multiple children have lived in the apartment at different stages
- Family members have used it whenever visiting Melbourne
- The property eliminated the need for hotels or short-term accommodation
- The lifestyle, beach proximity and views enhanced the family's overall experience
It became more than an investment — it became a long-term family asset, benefiting multiple generations while retaining strong value.
How Overseas Buyers Should Choose the Right Area in Melbourne
Instead of asking "What's the best area?", ask:
- Which universities need to be easily accessible?
- Is the property well-connected by transport?
- Is the building reputable and well-designed?
- Will the apartment appeal to future tenants and buyers?
- Does it offer lifestyle value beyond just proximity?
When these questions are answered properly, the "best area" becomes clear.
Final Thoughts
Melbourne offers many excellent areas to live and invest in — but the right choice depends on your goals, your children's needs, and the quality of the asset you're buying.
For Malaysian buyers, success comes from:
- Looking beyond distance alone
- Understanding transport and infrastructure
- Prioritising project quality
- Thinking long-term
If you're unsure which area or project suits your situation, working with specialists who understand both the Malaysian buyer mindset and the Melbourne market can make all the difference.