The 5 Top Regions to Invest in Victoria in 2025

Your Comprehensive Guide to Victoria’s Hottest Investment Destinations

Victoria, one of Australia’s most picturesque and economically vibrant states, continues to attract investors from all walks of life. As we head into the second quarter of 2025, the Victorian property and business market is evolving rapidly, shaped by infrastructure projects, demographic trends, and a growing appetite for lifestyle-driven living.

For those seeking lucrative returns and long-term growth, identifying the right region is key. Here, we uncover the five top regions to invest in Victoria in 2025, backed by emerging trends, local developments, and compelling opportunities.

1. Geelong: The Bayside Boomtown

Nestled on the shores of Corio Bay, Geelong has long been touted as Melbourne’s most promising satellite city. In 2025, it cements its reputation with an unmatched blend of lifestyle, infrastructure, and economic momentum.

• Infrastructure Investment: The ongoing duplication of the rail line between Melbourne and Geelong, plus upgrades to the Princes Freeway, are slashing commute times and making the city more accessible than ever.
  

• Population Surge: Geelong’s population is projected to soar past 300,000 in 2025, fuelled by internal migration from Melbourne and interstate, as families and professionals seek more affordable housing and a coastal lifestyle.
  

• Diversified Economy: No longer just a manufacturing hub, Geelong now thrives on health, education, advanced manufacturing, and a burgeoning tech sector. Deakin University and major healthcare precincts are magnets for talent and research investment.
  

• Property Market: House prices, while rising, remain accessible compared to Melbourne, with strong rental demand and low vacancy rates—ideal conditions for investors seeking steady yields and capital growth.

Whether you’re considering commercial property, residential homes, or development sites, Geelong’s upward trajectory makes it a top contender for 2025 investment.

2. Ballarat: The Golden Opportunity Returns

Steeped in history yet brimming with modern vibrancy, Ballarat is experiencing a renaissance. Famous for its gold rush legacy, today it is a locus of regional growth and innovation.

• Commuter Transformation: The completion of the Ballarat Line Upgrade has made train travel to Melbourne faster and more frequent, driving a spike in demand for both residential and commercial property.
  

• Education and Health: Federation University and major hospitals make Ballarat a knowledge and healthcare powerhouse, attracting students, academics, and professionals.
  

• Creative Economy: A thriving arts scene, festivals, and the preservation of heritage architecture add to Ballarat’s charm, supporting a robust tourism sector.
  

• Affordable Entry: For investors priced out of Melbourne, Ballarat offers a more attainable entry point, with suburbs like Wendouree and Alfredton showing strong growth potential.
  

Ballarat’s mixture of affordability, growth, and liveability sets the stage for both short-term gains and long-term stability.

3. Bendigo: The Heart of Regional Innovation

Bendigo, with its grand streetscapes and dynamic community, is fast becoming a beacon for investors. Its diverse economy, strategic location, and cultural capital status make it a hotspot in 2025.

• Major Projects: Bendigo GovHub, hospital expansions, and new residential communities are transforming the city’s economic and physical landscape.
  

• Transport Links: Direct rail connections to Melbourne and improvements to the Calder Freeway enhance connectivity, boosting both population growth and business investment.
  

• Rich Lifestyle Offering: Premier wineries, restaurants, and events draw new residents and tourists, supporting demand in both commercial and hospitality sectors.
  

• Steady Property Growth: Historical data and forecasts point to continued appreciation in property values, especially in well-located suburbs like Strathdale and Kennington.

With a balance of tradition and innovation, Bendigo’s appeal spans investors seeking capital growth, rental income, or diversification.

4. Mornington Peninsula: The Lifestyle Magnet

Renowned for its stunning coastline, vineyards, and gourmet scene, the Mornington Peninsula is no longer just a holiday destination—it’s a year-round investment gem.

• Tree-Change Trend: The post-pandemic shift towards remote work means more Melburnians are making the Peninsula home, driving demand for both permanent residences and holiday rentals.
  

• Limited Supply: Strict planning controls and the region’s environmental appeal create a scarcity of development land, underpinning property values.
  

• Premium Market: Suburbs like Mount Martha, Sorrento, and Mornington command premium prices, but offer robust long-term appreciation and rental yields, especially in the luxury market.
  

• Diversification: Opportunities extend beyond residential, with growth in boutique tourism, hospitality, and wellness industries.

For investors seeking the intersection of lifestyle and investment, the Mornington Peninsula stands out as a premier choice for 2025.

5. Melbourne's Inner North: Urban Renewal and Creative Energy

While the focus often shifts to regional centres, Melbourne’s inner north—encompassing suburbs like Brunswick, Northcote, and Preston—remains a powerhouse of growth and innovation, especially as the city evolves post-pandemic.

• Urban Renewal: Major projects, such as the Preston Market redevelopment and new mixed-use precincts, are transforming the urban fabric and attracting both residents and businesses.
  

• Cultural Diversity: Known for their multicultural communities, bustling cafés, markets, and live music, these neighbourhoods attract young professionals and creatives, sustaining property demand.
  

• Transport Accessibility: Extensive tram, train, and cycling networks make the inner north a model of urban convenience, appealing to renters and owner-occupiers alike.
  

• Sustainable Living: Eco-conscious developments and green spaces add to the desirability, with the area leading the way in sustainable urban design.
  

Despite higher entry prices, the inner north’s steady population growth, cultural cachet, and ongoing regeneration make it a compelling investment choice in 2025.

Trends Shaping Investment in Victoria

Beyond these five regions, several macro trends are shaping the investment landscape across the state:

• Infrastructure Spending: State and federal governments are investing heavily in transport, health, and education, lifting values and liveability across Victoria.
  

• Remote Work Revolution: Flexible work arrangements are fuelling demand for both urban and regional living, creating new opportunities in areas previously considered too remote for daily commuting.
  

• Population Growth: Victoria continues to attract migrants, both from overseas and interstate, ensuring sustained demand for housing and services.
  

• Green and Tech Sectors: Investment in renewable energy and technology hubs is creating jobs and stimulating economic activity, especially in regions like Geelong and Bendigo.

Final Thoughts: Making Your Move

Selecting the right region to invest in Victoria in 2025 depends on your goals—be it capital growth, rental returns, or lifestyle. While Geelong, Ballarat, Bendigo, the Mornington Peninsula, and Melbourne’s inner north each present unique opportunities, thorough research and local insight remain essential.

Keep an eye on infrastructure projects, demographic trends, and government initiatives that could influence value in the coming years. In a state renowned for its resilience and innovation, these five regions shine as beacons for investors seeking to secure their future in Victoria’s dynamic market.

If you're looking for a Buyer’s Agent or Qualified Property Investment Adviser (QPIA®) to assist you with purchasing a home or investment property in NSW, QLD, VIC, SA or WA, please get in touch with our team at Ready Set Buy - Property Buyer's Agents or give us a call on 1300 289 372!

Disclosure: The information contained in this blog is our personal opinion only and is not to be taken as financial advice or any other advice, as we do not know your financial situation. Property markets are volatile and all investments carry risks. Please speak with your accountant or any other licensed professional for specific advice based on your own personal circumstances. We will not be held liable for any losses.