University-adjacent suburbs in Melbourne generate some of the city’s most consistent rental demand. Students, academics and university staff all compete for rental properties within walking distance or a short tram ride of campus. In 2026, suburbs near Melbourne’s major universities continue to offer investors strong yields, low vacancy and steady capital growth.
Which universities drive the strongest rental demand in Melbourne?
The University of Melbourne (Parkville), RMIT University (CBD/Bundoora), La Trobe University (Bundoora), Monash University (Clayton) and Deakin University (Burwood) are Melbourne’s largest student population drivers. Each creates a distinct rental micro-market in surrounding suburbs.
Best investment suburbs near Melbourne universities 2026
| Suburb | Nearest University | Median Unit Price | Gross Yield | Vacancy Rate |
|---|---|---|---|---|
| Bundoora | La Trobe (1km) | ~$490k | 4.3% | 0.9% |
| Preston | La Trobe (3km) | ~$560k | 3.8% | 1.2% |
| Brunswick | RMIT (4km) | ~$650k | 3.5% | 1.3% |
| Coburg | RMIT (5km) | ~$580k | 3.7% | 1.1% |
| Clayton | Monash (1km) | ~$510k | 4.1% | 0.8% |
| Reservoir | La Trobe (6km) | ~$510k | 3.9% | 1.0% |
What type of property is best near a university?
One and two-bedroom units are the most liquid investment near universities. They attract the widest range of tenants — students, young professionals and academic staff — and have the lowest entry price, making them the most accessible investment in high-demand suburbs. Two-bedroom units that can be shared between two students are particularly strong performers near La Trobe and Monash campuses.
Frequently Asked Questions
What is the best suburb near La Trobe University for investment?
Bundoora and Preston are the strongest investment suburbs near La Trobe University’s Bundoora campus, offering gross yields above 4%, vacancy rates below 1.5% and median unit prices under $560k.
Do student rental properties perform well as long-term investments?
Yes, when purchased in the right suburbs. Student rental demand is structural and counter-cyclical — it does not disappear in economic downturns. However, investors should budget for slightly higher turnover costs as tenants typically change annually at the end of each academic year.
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