Gen Z ranks Melbourne #2 in the world to live: Here’s where FHBs can buy

Melbourne has done it again. According to TimeOut’s 2025 annual ranking of the world’s greatest cities, the Garden City has been crowned the second-best in the world for Gen Z to live in.

According to the list published earlier this month, Melbourne beat out cultural heavyweights like New York, London, Barcelona, and Paris.

So, what makes Melbourne so appealing to the next generation of professionals and first-home buyers? The city’s creative energy, thriving nightlife, job opportunities, green spaces, and inclusive culture all helped it climb the charts. It’s also a hub for innovation and education – factors that align perfectly with the lifestyle and career ambitions of younger buyers entering the property market.

The property outlook: Why now is an exciting time for FHBs

The good news for young buyers? The property market is showing signs of opportunity for those ready to take the plunge.

Last weekend, the Federal Government announced big changes to the first-home buyer scheme by launching the 5% deposit scheme for all first-home buyers. The changes will take place starting on 1 October 2025, having been fast‑tracked three months ahead of schedule. Here’s what’s changing:

• FHBs can buy with as little as a 5% deposit.
• No income caps: FHBs with higher incomes can access the scheme.
• No place limits: All Australian FHBs who have saved a 5% deposit can apply.
• Higher property price caps: In Melbourne, the price cap will increase from $800,000 to $950,000, in line with average house prices.
• Avoid costly Lenders Mortgage Insurance (LMI) as the Labor Government will guarantee a portion of the loan.

Data from AD Group’s FY25 Q4 Off-the-Plan Market Insights shows that first-home buyer activity in Victoria is holding strong, with FHBs accounting for 22% of buyer enquiries last quarter, second only to downsizers (26%).

While property budgets are rising, with $1m-$2m now the dominant bracket in Victoria (42%), off-the-plan (OTP) apartments continue to provide an accessible entry point compared to established homes.

Cotality data supports the above, with the gap between the median capital city house and unit value reaching a new record high in July. Houses now demand around a 48% premium, approximately $338,965 more than units.

Plus, with the Victorian Government extending stamp duty concessions for off-the-plan apartments, units, and townhouses for another year, buying OTP is looking more and more attractive for FHBs.

FHB-friendly Melbourne apartments to watch

If you’re considering entering the market, these developments are some popular and smart picks for first-time buyers seeking affordability and lifestyle.

New Johnston in Abbotsford

Abbotsford is the new “it” inner north suburb, proudly located between Collingwood and Fitzroy. Residents can expect to be immersed in a vibrant community at this oh-so-cool location, and even moreso within New Johnston’s very own walls, offering premium apartments, iconic Melbourne views, and ground-floor hospitality, office, and retail tenancies.

Construction is underway, stamp duty savings are available, and only a limited stock remains, priced from $810,000.

A stand-out: Scoring a 90/100 Walk Score, residents can enjoy the best of Abbotsford without ever needing a car. The Victoria Park train station is just a six-minute walk away, while buses run frequently along Johnston Street to the CBD and Melbourne University.

Collins Wharf in Docklands

Waterfront living with unbeatable city views? At Collins Wharf, this can be your everyday. This exclusive Collins Street address offers a mix of apartments at entry-level price points for those wanting a slice of Melbourne’s skyline, with one-bedroom apartments with one bathroom and one study priced from $731,500.

For a limited time, Lendlease, the developer, is covering the full stamp duty payable on all remaining residences at Collins Wharf. Don’t miss out!

A stand-out: Collins Wharf claims an exceptional dual-waterfront position, stretching between Victoria Harbour and the Yarra River. It’s a truly rare way of living for Melbourne, right at the edge of the CBD.

Elsternwick Gardens by Milieu in Elsternwick

Design-led, future-proofed, and community-focused, Elsternwick Gardens is resonating with younger professionals who value sustainability and architectural flair, located moments from the vibrant Elsternwick and Ripponlea villages.

Residences are selling from $689,000 for a one-bedroom, one-bathroom, and one-car park apartment.

A stand-out: Residents will have private access to the neighbouring historic Rippon Lea Estate and tennis court, with over 40% of the project site itself dedicated to landscaped gardens.

The Eveline in Moonee Ponds

Positioned in the heart of Moonee Valley Park, The Eveline sits just 6km from the Melbourne CBD. Here, a biophilic philosophy connects residents to nature at every opportunity, complete with five-star world-class amenities that ensure your health, wellness, and entertaining needs are not only met, but elevated, including a swimming pool, sauna and steam room, rooftop spa, private dining and lounge, and more.

One-, two-, and three-bedroom residences are selling, priced from $665,000 for a one-bedroom, one-bathroom, and one-car park apartment.

A stand-out: Neighbouring the Moonee Valley Racecourse, The Eveline offers unrivalled views over the racetrack and Melbourne skyline. It’s your personal grandstand to the W.S. Cox Plate!

Saxon Street by Milieu in Brunswick

Melbourne’s very own Brunswick East was named the sixth coolest neighbourhood in the whole world by TimeOut in late 2023. Nestled in the lively heart of Brunswick’s Merri-bek Arts and Culture Precinct, Saxon Street by Milieu presents the chance to be part of this special locale.

With 78 considered residences and a strong focus on sustainability, liveability, and local connection, this project is lifestyle perfection. And, with off-the-plan stamp duty concessions in place, buyers can save up to $80,000. Residences are selling from $620,000 for a one-bedroom, one-bathroom, and one-car park apartment.

A stand-out: Located within the Merri-bek Arts and Culture Precinct, Saxon Street will contribute to this edgy, multi-cultural area with a cafe and gallery space on the ground floor.

Highett Common in Highett

Looking for a Bayside home? How about one within a brand-new masterplanned community home to a three-hectare nature reserve and one hectare of parkland (making it Victoria’s first Net Zero Targeted Community)? You’ll find it at Highett Common.

With completion anticipated in October 2025, you can be spending Christmas 2025 in your Bayside sanctuary. Residences are selling from $725,320 for a two-bedroom, one-bathroom, and one-car park apartment.

A stand-out: Highett Common boasts impressive amenities, including indoor and outdoor swimming pools, a residents’ gym, yoga and wellness areas, and a future community library.

For more off-the-plan apartments and market insights, click here.

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