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Melbourne is Australia’s largest city and one of the country’s most popular tourist destinations thanks to its rich culture, thriving sports scene, and impressive architecture.
If you’re wondering which area of Melbourne to stay in for your upcoming trip, check out this list of popular neighborhoods. These are the city’s best areas for tourists, and there’s a little something for every type of traveler.
Melbourne Central Business District for Nightlife
Highlights: Federation Square, Flinders Street Station, Ian Potter Centre, Hosier Lane, Immigration Museum, State Library of Victoria, Queen Victoria Market
Melbourne’s Central Business District is the heart of the city, and it offers a unique blend of old and new. A heritage tram system operates throughout Melbourne CBD and there are many historical landmarks in the area that cozy up beside modern office blocks and skyscrapers.
The area has excellent nightlife so if you plan to hit up Melbourne’s best pubs, bars, and clubs, staying in the CBD makes sense. You’ll also find plenty of high-quality restaurants and cafes and many luxury shops on Bourke Street. Collins Street is considered the indulgent epicenter of the CBD, with plenty of high-end eateries and stores. Look out for the iconic laneways and alleyways in Melbourne CBD, some of which house historic shopping arcades while others are designated for talented graffiti artists.
The area is highly walkable and offers good public transport links to other parts of the city thanks to Flinders Street Train Station. You have a good choice of accommodation in the CBD, from luxury hotels to affordable hostels.
Overall, accommodation here is on the pricey side, given the convenient central location, but some great options include the Citadines on Bourke Melbourne for a skyline view or, for pure luxury, the Sky Melbourne.
Southbank for Culture
Highlights: Melbourne Recital Hall, National Gallery of Victoria, Australian Center for Contemporary Art, Crown Casino Complex, Eureka Tower, Melbourne Skydeck
Southbank is Melbourne’s cultural hub and the perfect place to stay for fans of live music, entertainment, and art. It stretches along the bank of the Yarra River, and it’s just a five-minute walk from downtown via the numerous bridges in the area. The atmosphere on Southbank is lively, and there are plenty of opportunities to people-watch from riverside bars and eateries.
There are many popular attractions in Southbank. Melbourne Recital Hall and the Elisabeth Murdoch Hall offer incredible acoustics for live concerts. The National Gallery of Victoria boasts more than 75,000 artworks from Australian and international artists. Crown Casino Complex offers a luxurious night out. For a romantic evening, take a dinner cruise on the Yarra River.
Southbank, like CBD, has a good choice of accommodation but not without hefty price tags when it comes to hotels. The Crown Towers is one of the area’s most popular luxury hotels. Look in the area surrounding Southbank’s boundaries for more affordable Melbourne hotels, hostels, and guesthouses.
Docklands for First-Timers
Highlights: Marvel Stadium, District Docklands Shopping Mall, Melbourne Star Observation Wheel, ArtVo
Docklands is a modern harbor development that sits directly west of CBD and Southbank. You can enjoy waterfront dining and drinking, impressive modern sculptures, statues, and murals, and easy access to the South Warf via Webb Bridge.
Compared to Southbank and CBD, Docklands is a little quieter, which might suit families who want to be close to the city center. There are cycling paths and bike rentals to make use of, plus lots of opportunities for shopping.
Since Docklands is so close to the city center, it’s a convenient place for first-time visitors. You can make use of the free City Circle tram, which takes you right to the heart of Melbourne within just a few stops. Although relatively limited, accommodation is cheaper than in CBD and Southbank – the Modern Docklands is an excellent option!
East Melbourne for Inner-City Parks
Highlights: Fitzroy Gardens, Melbourne Cricket Ground, Old Treasury Building, Parliament House, St Patrick’s Cathedral
Known for its extensive green spaces, East Melbourne feels like a lush and spacious paradise beside CBD. It’s a popular inner-city suburb for families and a good spot for people who want a relatively quiet place to stay with easy access to Melbourne’s city center.
East Melbourne has lovely tree-lined streets and impressive Victorian houses and government buildings. It’s also home to Fitzroy Gardens, a popular park with many interesting attractions to explore. Another important landmark is Melbourne Cricket Ground (MCG), a huge stadium that has hosted two Cricket World Cups and an Olympic World Games.
You have a great choice of accommodation in East Melbourne, but it isn’t cheap due to the close proximity of so many popular sights. Tramlines connect the suburb with the CBD which makes it easy to get around during the day.The Victorian Terrace is perfect to be in the heart of the area while the Birches Serviced Apartments are a fantastic budget option.
Carlton for Foodies
Highlights: Lygon Street, Royal Exhibition Building, Carlton Gardens, Melbourne Museum
Just north of the CBD is Carlton, a popular residential area for students. The young population helps the area maintain a vibrant nightlife, so if you want to dance until dawn, Carlton is where you should do it.
During the day, Carlton is a great place to grab a cup of coffee or enjoy brunch. Lygon Street, the Little Italy of Melbourne, is a hub of fantastic Italian restaurants, coffee shops, and grocery stores. It’s a great base for foodies, especially those who love Italian cuisine. You can also get a feel for historic Melbourne here. Simply wandering the streets of Carlton allows you to take in beautiful Victorian architecture.
Since the area is so popular with students, Carlton has some fairly affordable accommodations on offer. There are many mid-range hotels here, as well as self-catering apartments. Cosmo Stays offers well-acquainted serviced apartments, while the Wahroonga offers upscale accommodations flush with amenities.
Fitzroy for Quirky Shopping
Highlights: Rose Street Artists Market, Fitzroy Market
Many consider Fitzroy to be the coolest suburb in Melbourne thanks to its eclectic bars, eateries, and second-hand clothing stores, most of which can be found on Brunswick Street. Vintage shopping is a popular pastime here, and it’s easy to spend a full day checking out the boutiques and dropping into bars and cafes for refreshments.
Fitzroy is very walkable and the area is packed with tram stops for easy access to Melbourne’s center. There aren’t too many tourist attractions within the suburb itself but it’s just a short walk or tram ride to nearby East Melbourne and Carlton.
There’s a good mix of accommodation in Fitzroy. The area is youthful which means the quirky hostels and apartment hotels here are priced fairly despite offering a luxurious experience. The Nunnery is great for travelers passing through, while the Heritage Grandeur is the luxurious alternative.
Collingwood for Art
Highlights: Collingwood Children’s Farm, Backwoods Gallery, Darling Gardens.
Collingwood was once an industrial area home to a large population of blue-collar workers. After extensive regeneration, it has become a hipster suburb popular with artists. Many of the old warehouses have been converted into cool art galleries, cafes, and bars. Collingwood boasts a large LGBTQ+ population so you can expect a diverse and welcoming community here.
Head to Smith Street to see an impressive display of modern street art on 19th-century buildings. Nearby are several microbreweries, coffee shops, bookstores, and vintage shops. Check out Easey’s rooftop bar, where you can enjoy beer and burgers as the sun goes down in converted former train carriages.
Accommodation in Collingwood is fairly priced. Melbourne Metropole Central is the best hotel in the area for those on a tight budget. More luxurious hotel options are available if you want an indulgent stay, as well as hostels that are ideal for backpackers looking to connect with like-minded travelers. The Marriot on Smith Collingwood is well-appointed for a longer stay, while the Iyf Collingwood is a tremendous value for the area.
St. Kilda for Beach Breaks
Highlights: St. Kilda Beach, Luna Park, Jewish Museum of Australia, Palais Theatre, St. Kilda Botanical Gardens
In the Victorian era, Melbourne’s elite made St. Kilda their home. And while their 19th-century terrace houses and mansions remain today, the population is significantly more diverse and bohemian. This part of Melbourne looks out to Port Phillip Bay and it has a lively and informal beachside atmosphere. It offers great waves for surfing and its long stretch of sand is usually packed with sunbathers and surfers.
On St. Kilda Esplanade you’ll get impressive views out to sea and cross paths with many cyclists, rollerbladers, and joggers. Acland Street is a hub for fine dining, coffee shops, and European bakeries.
Luna Park is a beloved century-old theme park with a lively festival-like atmosphere. You’ll also find plenty of live music venues dotted throughout St. Kilda, which generate exciting nightlife.
There’s no shortage of things to do and see in the area, and you can reach the city center by tram in just 30 minutes. If you want a beach break with convenient access to the city, St. Kilda is a good shout. It’s relatively cheap to stay in St. Kilda, and there’s lots of choice of accommodation available, including Quest St. Kilda Bayside and the Hamptons Apartments.
Footscray for Tight Budgets
Highlights: Footscray Market, Little Saigon Market, Footscray Park, Heavenly Queen Temple
Footscray is an incredibly diverse part of Melbourne and serves as a hub for East African, Chinese, and Vietnamese migrants. Its multicultural nature means it’s one of the best places in the city to find delicious international cuisine, with Ethiopian, Vietnamese, and Indian food being particularly good here.
The Community Arts Centre in Footscray drives a distinctive art scene in this area. Locals regularly put on performances and exhibitions that attract people from all over the city. Footscray Park is another popular attraction. It’s one of Australia’s biggest Edwardian parks and is a wonderful open space to walk, relax, and people-watch.
You can reach the city center by tram in 30 minutes. Footscray is a significantly cheaper area to stay and live in compared to the center of Melbourne. It’s the ideal base if you’re on a tight budget with options like the Footscray Motor Inn and Liberty One.
South Yarra for Upscale Stays
Highlights: Prahran Market, Como House
South Yarra is an upmarket suburb with sprawling parks and gardens. The wealthy population of Melbourne used South Yarra as a retreat from the busy city center during the 1840s, and it remains an upscale area popular with young professionals. Como House, a glamorous 19th-century stately home, offers insight into the opulent South Yarra of days gone by.
One of the best attractions in South Yarra is Prahran Market, which is considered the best food market in Melbourne. You’ll find a wide variety of produce in the delis here, including specialty cheeses and meats. Those with kids should visit the market on Tuesdays to catch the visiting animal farm. For cocktail lounges, bistros, and bars, head to the popular Chapel Street.
If you’re looking to stay in a boutique hotel, South Yarra is a great place to find one. You can also find a good range of self-catered accommodation here since the area is highly residential.
South Melbourne for Local Life
Highlights: Royal Botanic Gardens, Albert Park
Just a few tramstops away from Southbank and the CBD, South Melbourne is an upmarket residential area that offers easy access to the lush Royal Botanic Gardens. The suburb also offers convenient access to St. Kilda for beachside fun.
Albert Park is a huge stretch of open space that houses a variety of attractions, including a swimming pool, a golf course, and a sports center. In March, the park evolves into a racing track for the Australian Formula 1 Grand Prix.
You’ll find hotels on the outskirts of South Melbourne, but since this is primarily a residential area, you might have better luck finding self-catered accommodation. If you want to experience Melbourne like a local, this suburb is a great place to stay.
Richmond for a Quiet Pace
Highlights: Barkly Gardens, Citizens Park, Main Yarra Trail Park
Richmond went through a period of gentrification during the 90s, and it is now one of the city’s most sought-after postcodes. It offers a quieter pace of life than the most central areas of the city, but its transport links allow easy access to popular attractions.
There’s a great food scene in Richmond, no doubt, thanks to the diverse population that lives here. You’ll find great Greek, Italian, Vietnamese, and Korean eateries in the area.
Richmond has a good mix of accommodations to suit a range of travelers and budgets, from mid-range hotels to hostels. It’s a great area to return to after a busy day of sightseeing, as there are plenty of great restaurants, bars, and live music venues within walking distance. Check out the Lanbruk Richmond Hill for fully furnished apartments or the Warney for a spectacular skyline view.
Choose Your Home Away From Home in Melbourne
Melbourne is a huge city with lots of variety, so it’s easy to find an area that meets your every need. Now you know more about the lay of the land in Melbourne, and you can choose a neighborhood to stay in that suits your pace, budget, and interests.
