According to SuburbData’s June 2025 analysis, Melbourne’s most overvalued suburbs include Beaconsfield Upper, Deepdene, Warrandyte South, Pakenham South, Silvan, and Portsea.
These areas were flagged using a mix of demand, supply, and price gap metrics compared with nearby suburbs.
Contents
Quick Summary – Melbourne’s Most Overvalued Suburbs
| Suburb | Median Price | Price Gap vs Neighbours |
|---|---|---|
| Beaconsfield Upper | N/A (overvalued flag) | Over benchmark |
| Deepdene | N/A (overvalued flag) | Over benchmark |
| Warrandyte South | N/A (overvalued flag) | Over benchmark |
| Pakenham South | N/A (overvalued flag) | Over benchmark |
| Silvan | N/A (overvalued flag) | Over benchmark |
| Portsea | N/A (overvalued flag) | Over benchmark |
| St Kilda East | $1.2m | $348,000 cheaper than neighbours |
| Box Hill North | $1.4m | $135,000 cheaper |
| Doreen | $788,000 | $49,000 cheaper |
| Noble Park | $794,000 | $42,000 cheaper |
| Kings Park | $682,000 | $39,000 cheaper |
| St Albans | $721,000 | $34,000 cheaper |
| Deer Park | $653,000 | $35,000 cheaper |
| Officer | $756,000 | $32,000 cheaper |
| Westmeadows | $765,000 | $6,000 cheaper |
| Mickleham | $714,000 | $2,000 cheaper |
Source: SuburbData, June 2025, realestate.com.au
What does “overvalued” mean for Melbourne suburbs?
A suburb is considered overvalued when the median house price is higher than nearby areas with similar demand and supply conditions. SuburbData compares listings, buyer activity, and historic sales to calculate price gaps.
Which Melbourne suburbs are most overvalued in 2025?
The most overvalued suburbs in 2025 are Beaconsfield Upper, Deepdene, Warrandyte South, Pakenham South, Silvan, and Portsea. These areas are priced above what local demand and supply suggest.
Which Melbourne suburbs look cheaper compared to neighbours?
SuburbData also listed suburbs where homes are cheaper than nearby postcodes despite similar features. These include:
- St Kilda East – $1.2m, $348k below neighbours
- Box Hill North – $1.4m, $135k below
- Doreen – $788k, $49k below
- Noble Park – $794k, $42k below
- Kings Park – $682k, $39k below
- St Albans – $721k, $34k below
- Deer Park – $653k, $35k below
- Officer – $756k, $32k below
- Westmeadows – $765k, $6k below
- Mickleham – $714k, $2k below
Why are overvalued suburbs important for buyers?
Overvalued suburbs may offer less growth potential in the short term because prices already sit above surrounding areas. Buyers often risk paying more for similar amenities. On the other hand, suburbs priced below neighbours can present better value opportunities.
FAQs
What is the most overvalued suburb in Melbourne in 2025?
Beaconsfield Upper, Deepdene, and Portsea are among the most overvalued, according to SuburbData.
Which suburbs are undervalued compared to their neighbours?
St Kilda East and Box Hill North show the biggest price gaps below nearby postcodes.
Is now a good time to buy in overvalued suburbs?
It depends on lifestyle needs, but from an investment perspective, undervalued suburbs often provide stronger long-term growth potential.
Melbourne City Guide
Understanding which suburbs are overvalued is only one part of Melbourne’s property landscape.
To see how these areas connect with the city’s transport hubs, cultural districts, and lifestyle precincts, explore our in-depth Melbourne City Guide 2025.
It highlights neighbourhood profiles, infrastructure projects, and liveability factors that shape the way Melbourne continues to grow.
