Is Cheltenham a nice place to live?

Cheltenham has a village shopping strip along Charman Road, mature street trees and Cheltenham railway station on the Frankston line. Nearby reserves and foreshore open space near Port Phillip Bay provide walking and cycling paths. Couples with children are the largest family group in Cheltenham, making up 47.5% of families, and most homes are owner-occupied. Everyday needs are met by Southland shopping centre and local cafés, and there are reserves, pocket parks and paths for walking and cycling; the SRL East Cheltenham Structure Plan has been approved and implements an underground Suburban Rail Loop station beneath part of Sir William Fry Reserve, with the station platform about 17 metres below ground.

Is it expensive to live in Cheltenham?

At the most recent Census, a typical local household in Cheltenham earned about $1,919 a week. On those figures, a house rent of $750 a week would take about 39% of a typical local household's weekly income, and a unit rent of $550 a week would take about 29%, so renting a house would take a sizeable share of income while renting a unit sits in the moderate range. Buying is further from local incomes. The median house price of $1,102,000 is about 11.0 times a typical local annual household income, and the median unit price of $630,000 is about 6.3 times. On the figures, buying—especially a house—sits well above what a typical local household earned at the last Census, while renting a unit looks the more manageable option for many. Everyone's financial situation is different, so it's important to consider your own circumstances when deciding which suburb is right for you.

Is Cheltenham a good place to invest?

A solid 5.8% rise in median house values is the key movement here, recorded in Cheltenham over the past 12 months; median unit values edged up slightly by 1.5%. Unit rents rose a modest 3.8%, so rental income for units outpaced unit capital growth. The house figure to note is the 5.8% gain in median value, which represents capital growth for house owners. This information has been prepared without taking your objectives, needs and overall financial situation into account. It is not meant to be a substitute for professional financial advice. For this reason, you should consider the appropriateness of the information and, if necessary, seek appropriate professional advice.

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Cheltenham suburb profile

Cheltenham is a south-eastern Melbourne suburb with tree-lined streets and a mix of interwar bungalows, postwar brick homes and newer townhouse infill. Its town centre along Charman Road keeps a village shopping strip feel, with pocket parks and mature street trees contributing to a settled residential character.

Cheltenham railway station on the Frankston line and regular bus connections link the suburb to the wider network, while Southland shopping centre and local cafés meet everyday needs. Recreational options include nearby reserves and foreshore open space near Port Phillip Bay, with walking and cycling paths running through the area.

Cheltenham property market performance

Current median dwelling price$866,000Past 3 months

Property growth+3.7%Past 12 months

Cheltenham's median house price is $1,102,000, up 5.8% over the last 12 months, a notable rise. The median unit price is $630,000 and edged up 1.5% over the last 12 months. House values rose more strongly than unit values over the last 12 months.

In Cheltenham, unit rents rose 3.8% over the last 12 months, a moderate rise that outpaced unit values.

	Houses	Units
Median price Past 3 months	$1.10M	$630K
Change in value Past 12 months	5.8%	1.5%
Sold Past 3 months	83	45
Median days on market Past 12 months	36	30
Average rent Past 12 months	$750	$550
Change in rent Past 12 months	N/A	3.8%

5 year median price trend for houses and units

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Cheltenham demographics

Cheltenham is a community where couples with children are the largest family group and most homes are owner-occupied.

Couples with children make up 47.5% of families. At the 2021 Census, 23,992 people lived in Cheltenham.

Cheltenham and Victoria

	Suburb	VIC
Median age years	40	38
Median household income weekly	$1,919	$1,759
Couples with children share of families	47.5%	45.5%
Couples without children share of families	35.1%	37.6%
One-parent families share of families	15.8%	15.2%
Homes owned outright share of homes	33.8%	33.2%
Homes with a mortgage share of homes	38.3%	37.3%
Homes rented share of homes	27.9%	29.5%

Source: ABS 2021 Census. Shares of homes exclude other and not-stated tenure.

Cheltenham infrastructure, key developments and investment opportunities

Cheltenham's SRL East Cheltenham Structure Plan was approved by the Minister for Planning in June 2026, and implements an underground Suburban Rail Loop station beneath part of Sir William Fry Reserve with the station platform sitting around 17 metres below ground. The Level Crossing Removal Project rebuilt Cheltenham station as a rail trench and the new station opened in August 2020.

Bayside City Council began construction in early 2026 on an upgrade to Cheltenham Recreation Reserve playground; the design includes installing the relocated Cheltenham Station down building to provide shaded seating and viewing over the sportsground.

Suburbs near Cheltenham

Some popular suburbs near Cheltenham include:

How does Cheltenham compare to nearby suburbs?

Median house prices: Cheltenham’s median house price is 16.8% lower than Highett’s.
Median unit prices: Cheltenham’s median unit price is 2.2% higher than Highett’s.
House price growth: Over the past 12 months, house prices in Cheltenham have grown 5.5% higher than in Highett.
Unit price growth: Over the past 12 months, unit prices in Cheltenham have grown 3.1% higher than in Mentone.
Selling speed for houses: Properties in Cheltenham are selling 21.7% faster than in Highett.
Selling speed for units: Properties in Cheltenham are selling 26.8% faster than in Beaumaris.
Investment considerations: In Cheltenham, the rental yield for house is 17.9% higher than the Melbourne average, while the rental yield for units is 7.6% lower.
House price growth: Over the past 12 months, house prices in Cheltenham have grown 21.8% higher than the average rate of growth across Melbourne.
Unit price growth:Over the past 12 months, unit prices in Cheltenham have grown 13.3% higher than the average rate of growth for units across Melbourne.

Common questions about Cheltenham

Is Cheltenham a nice place to live?
Cheltenham has a village shopping strip along Charman Road, mature street trees and Cheltenham railway station on the Frankston line. Nearby reserves and foreshore open space near Port Phillip Bay provide walking and cycling paths.

Couples with children are the largest family group in Cheltenham, making up 47.5% of families, and most homes are owner-occupied. Everyday needs are met by Southland shopping centre and local cafés, and there are reserves, pocket parks and paths for walking and cycling; the SRL East Cheltenham Structure Plan has been approved and implements an underground Suburban Rail Loop station beneath part of Sir William Fry Reserve, with the station platform about 17 metres below ground.
Is it expensive to live in Cheltenham?
At the most recent Census, a typical local household in Cheltenham earned about $1,919 a week. On those figures, a house rent of $750 a week would take about 39% of a typical local household's weekly income, and a unit rent of $550 a week would take about 29%, so renting a house would take a sizeable share of income while renting a unit sits in the moderate range.

Buying is further from local incomes. The median house price of $1,102,000 is about 11.0 times a typical local annual household income, and the median unit price of $630,000 is about 6.3 times. On the figures, buying—especially a house—sits well above what a typical local household earned at the last Census, while renting a unit looks the more manageable option for many.

Everyone's financial situation is different, so it's important to consider your own circumstances when deciding which suburb is right for you.
Is Cheltenham a good place to invest?
A solid 5.8% rise in median house values is the key movement here, recorded in Cheltenham over the past 12 months; median unit values edged up slightly by 1.5%.

Unit rents rose a modest 3.8%, so rental income for units outpaced unit capital growth. The house figure to note is the 5.8% gain in median value, which represents capital growth for house owners.

This information has been prepared without taking your objectives, needs and overall financial situation into account. It is not meant to be a substitute for professional financial advice. For this reason, you should consider the appropriateness of the information and, if necessary, seek appropriate professional advice.

Choose the right real estate agents in Cheltenham

In Cheltenham ,156 agents are actively selling property, but a small number do the heavy lifting. Just 5 agents handled 28.0% of all sales in the past year, giving them a strong presence and deep experience in the local market.

Commission rates usually sit between 1.55% and 2.61%. Comparing agents and understanding what’s included in their fee structure can help you find the right mix of service, value, and motivation—without compromising on outcomes.