South Melbourne vs Melbourne.
Comparing two suburbs with median house prices of $1,760,000 and $440,000.
Melbourne (median $440,000) is roughly 300% cheaper to buy into than South Melbourne ($1,760,000).
On school quality, the average ICSEA across schools serving South Melbourne (1124) sits above Melbourne (1107). South Melbourne skews owner-occupied (42%), Melbourne runs more rental-dense (26% owner).
For buyers
Melbourne is the lower entry point at $440,000 median, 300% below the other suburb. For first home buyers, that translates to a smaller deposit and lower stamp duty bill.
For investors
Melbourne offers the higher gross rental yield (5.33% vs 1.92%), favouring cash-flow investors.
For families
South Melbourne edges out on average school ICSEA (1124 vs 1107). South Melbourne also has a higher family-household share (51% vs 38%), so the catchment community skews family-heavy.
Common questions
Is South Melbourne or Melbourne cheaper to buy in?
Melbourne has the lower median house price at $440,000, roughly 300% below South Melbourne ($1,760,000). The gap on units is usually similar but worth checking on the full suburb profiles.
Does South Melbourne or Melbourne have better schools?
On average school ICSEA (the ACARA index that benchmarks educational advantage), South Melbourne scores 1124 vs 1107 in Melbourne. ICSEA is a school-community indicator, not a quality rating, so always check NAPLAN results and catchment boundaries for the specific address you're considering.
Which suburb has higher rental yield, South Melbourne or Melbourne?
Gross rental yield on houses is 5.33% in Melbourne vs 1.92% in South Melbourne. Gross yield equals annual rent divided by purchase price. Net yield (after strata, rates, insurance, agent fees and maintenance) typically runs 1.5-2 percentage points lower.
The numbers behind the take
Price & Market
Rental
Lifestyle & Demographics
Risk & Hazard
Schools
Climate
Green dot = better on that metric (lower price, higher growth, higher walkability, lower risk).
Compare South Melbourne against another suburb