Part of Northern Suburbs Melbourne: This guide is part of our comprehensive Northern Suburbs Melbourne Property Investment Guide
Preston Property Investment Guide 2026: Inner Melbourne Lifestyle
Preston offers Inner Melbourne gentrification opportunity: $820,000 median, 7.8% growth. CBD proximity (5-10km), tram access, cafe culture. Strong demographics (young professionals, students), tight vacancy (under 2%). Location premium investment.
Quick Answer
Why invest in Preston?
Preston delivers Inner Melbourne lifestyle: $820,000 median, 7.8% growth. CBD 5-10km, tram network access, established cafe/retail culture. Apartments $650k-$850k yield 4.0-4.5%. Gentrification ongoing - young professionals, students, creatives. Vacancy under 2%, strong rental demand.
Preston Overview
Inner Melbourne Comparison
| Suburb | Median | Growth | Yield |
|---|---|---|---|
| Preston | $820,000 | 7.8% | 3.6% |
| Fitzroy | $1,100,000 | 5.8% | 3.4% |
| Collingwood | $980,000 | 6.2% | 3.8% |
| Brunswick | $920,000 | 6.8% | 4.0% |
Preston positioned Inner Melbourne market. 7.8% growth reflects gentrification premium, location scarcity, strong demographics.
Investment Strategy
Apartment Entry: Buy 2-bed apartments $650k-$850k yield 4.2%. Target CBD workers, students. Sub-$1M entry to Inner Melbourne.
House Gentrification: Buy houses $820,000 in improving streets. Accept low yield (3.6%) for capital growth 7.8%, location scarcity.
Risks
High Entry: $820,000 limits mainstream buyers.
Low Yields: 3.6% requires negative gearing.
Gentrification Priced In: May have limited upside remaining.
Frequently Asked Questions
Yes - Preston delivers 7.8% growth at $820,000. Inner Melbourne gentrification leader. CBD proximity (5-10km), tram access, cafe culture. Yields 3.5-4.2%. Established demographics, strong rental demand from young professionals, students.
Houses: 3.2-3.8%. Apartments: 4.0-4.5%. $820,000 entry balanced by strong capital growth 7.8%. Preston attracts CBD workers, university students, creatives. Tight vacancy (under 2%).
Preston: $820,000, 7.8% growth, 3.7% yield, lifestyle. Outer Melbourne: $550k-$700k, 9-10% growth, 4.8% yield, value. Preston offers location premium. Outer offers affordability/growth. Different buyer profiles.
Both viable. Apartments ($650k-$850k) for sub-$1M entry, student/professional tenants. Houses ($820,000) for land value, families. Preston gentrifying - both performing.
Young professionals (25-40), students, creatives, LGBTQ+ community. Progressive, multicultural. Owner-occupiers 55-65%. Gentrification ongoing - established mixing with new money.
High entry cost ($820,000 limits buyers), gentrification premium may be priced in already, apartment oversupply in some buildings. Requires street-level research.