tr

Preston vs Reservoir — Which Is the Better Investment Suburb in 2026?

June 25, 2026

Preston and Reservoir sit adjacent on the Mernda line and represent Melbourne’s best value inner-north corridor. Both suburbs offer genuine positive cash flow potential at affordable entry prices.

Median Price Comparison

Metric Preston Reservoir
Median House Price $1,050,000 $920,000
Median Unit Price $520,000 $480,000
House Yield 2.7% 3.1%
Unit Yield 4.0% 4.4%
5-Year Growth 31% 28%
GeeVee Score 8.1/10 7.9/10

Which Suburb Wins for Yield?

Reservoir wins on yield across both houses and units. At 3.1% house yield and 4.4% unit yield, Reservoir is one of Melbourne’s strongest cash flow suburbs at sub-$1m entry.

Which Suburb Wins for Capital Growth?

Preston edges Reservoir on five-year capital growth (31% vs 28%) due to its proximity to Northcote and stronger gentrification pull from the south.

Frequently Asked Questions

Is Reservoir cheaper than Preston?

Yes. Reservoir’s median house price is $920,000 versus $1,050,000 for Preston — a $130,000 saving at entry with a higher yield.

Which suburb has more blocks of units for sale?

Reservoir has the highest concentration of blocks of units in Melbourne’s inner north, making it a strong option for investors seeking multi-dwelling assets.

Find off-market investment properties in Preston and Reservoir through the Collings Property Platform. Join free at collings.com.au/portal

Find your next property with Collings

Track suburbs, get matched to on-market and off-market listings, and manage your whole property search in one place. Access the Collings property portal.

Scroll to Top