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Nestled among the prime inner-eastern suburbs of Kew, Camberwell, Balwyn and Hawthorn, one of Melbourne’s most expensive suburbs is probably one you haven’t heard of.
The suburb of Deepdene ranks as Melbourne’s second most expensive, with a median house value of $3,518,115, on figures from property data firm Cotality’s 2025 Best of the Best report.
Deepdene is Melbourne’s second-most expensive suburb.Credit: Marshall White Boroondara
Formerly a neighbourhood within Balwyn, Deepdene was recognised as a bounded locality in April 2010 and is now one of Melbourne’s smallest – 85 hectares – and most exclusive pockets. The 2021 census reports a population of about 2100 and 903 homes.
Melbourne’s most expensive suburb is Toorak, with a median house value of $4,155,231.
The top five is also made up of Malvern, third with a median value of $3,297,048; Canterbury fourth at $3,246,557; and bayside Brighton fifth, with a median house price of $3,211,412.
While most suburbs in the top five recorded at least 100 house sales in the 12-month period to September 2025, Deepdene sold only 27. The small volumes in the area mean it is not always possible to calculate a median.
Tim Lawless, head of research at Cotality, believes the suburb’s smaller number of properties affects house values.
“When you go back to that gazetting of the suburb, it kind of carved out a very exclusive niche of Balwyn,” he said.
“There are about 609 houses in the suburb, so in terms of size, it is really small. Of those 609, there were only 27 sales in the 12-month period, so it is a pretty low number of sales; about 3.6 per cent of homes turned over.”
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Lawless said most homes in Deepdene were tightly held, contributing to the high property values.
“The average hold period is about 19 years. The Australian average is more like about eight years, so it’s about double the national average,” he said.
Nick Smith, partner and auctioneer at Nelson Alexander Ivanhoe, believes the position of Deepdene is key to its exclusivity.
“It’s an area that ticks a lot of boxes with amenities that people are seeking out,” he said.
“It’s bordered by some of Melbourne’s most prestigious suburbs, like Canterbury and Kew, and is close to some of Melbourne’s most sought-after schools. It also has great public transportation, parks, and tree-lined streets.”
These factors make Deepdene popular with families, who tend to stay long term.
“Families with kids have a lot of good schools to choose from, both primary to secondary,” Smith said.
“School is about 12 years, give or take, then the kids might stay with the parent, for a few years, so it could easily sort of extend out to 15 or 20 years before a family may even give any thought to potentially downsizing.”
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In addition to families, buyers are primarily high-earning professionals, business owners and executives, many of whom are also buying homes for the long term, said James Chronis, sales consultant and auctioneer with Jellis Craig Boroondara Group.
“They’re drawn to larger land holdings and substantial residences, whether new architectural homes or established period properties,” he said.
“Sellers are often long-term owners, which contributes to the suburb’s low turnover and low supply.”
Houses, both period and contemporary, make up about 70 per cent of the property market in Deepdene, according to Cotality figures.
“Deepdene’s sales skew heavily toward family-scale homes on substantial blocks, rather than a broader mix of apartments, smaller lots, or higher-turnover stock,” said Kay & Burton executive director Scott Patterson.
“It is a very consistent area with an impressive blend of renovated 1920s and 1930s homes and contemporary-style luxury family residences.”
Patterson said high-end new properties by reputable builders were particularly popular, attracting local and international interest. Ultimately, however, it came down to two key factors: a home’s location and presentation.
“The best properties tend to draw strong first-weekend inspections, and we’re seeing buyers acting decisively,” he said. “Over the past year, we’ve seen a mix of properties selling at auction or selling prior to auction, which is a good indicator of depth in the market when the home is well credentialled.”
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Chronis has found a similar result. “The final quarter of 2025 was noticeably strengthened,” he said.
“Quality homes regularly attracted strong open-home attendance, often around 40–50 groups over a typical four-week campaign.”
While interest is strong in Deepdene, this isn’t new.
“The suburb usually appears in the top five of Melbourne’s most expensive median house value, usually only changing spots year to year,” Lawless said.
This reliability makes the Deepdene market even more sought-after.
“That scarcity value probably just becomes more and more significant and just drives values higher, so it’s probably quite entrenched in one of the top positions,” he said.
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