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The Best Areas to Stay in Melbourne for Any Budget

Wondering which neighbourhood is best for you? Read on ...

Melbourne is a sprawling city with numerous suburbs that you could stay in, many with a unique character of their own. The centre of the city is naturally the most popular area to stay as it has most of the popular attractions within walking distance. But tastes differ. Beachside suburbs like St Kilda, or hipster areas like Fitzroy offer good quality budget accommodation in charming surrounds.

Inner suburbs are within 20 minutes of the CBD by public transport and often that distance can even be walked.

Within the centre of the city, you can make use of Melbourne's free tram zone. This includes the CBD, Docklands and parts of North Melbourne.

A few options are available in the outer suburbs, particularly motels. If you have a car with you, this can be a good choice because it will mean less money spent on parking. The trip into the city to see things will be a bit longer though, up to an hour if you're staying a long way out. Consider carefully what the public transport options are when you stay in the outer suburbs. It's not ideal to have to drive into the city for the day, since parking can be exorbitant.

Price Snapshot for Melbourne, Australia

$55 - $85

Budget range (bottom 25%)


Average price (in USD)


Top 25%


What are these prices?

We analysed all the minimum prices for accommodation in Melbourne. The prices are for the cheapest room / bed available for a one night's stay. Prices are shown in US Dollars. The chart gives an idea of what accommodation price distribution is like in Melbourne. You can use it to work out what is considered cheap for Melbourne and what is considered expensive.

Melbourne CBD

Melbourne CBD

While many of the options in the CBD are mid-range and luxury hotels, there are a few hostels and cheap(ish) hotels that are incredibly popular. If you want to explore the laneways and bars to the fullest, then being in the CBD is perfect, because you will be able to stumble back to your bed after a big night out. Victoria Market is still just a walk away, as are sporting grounds like the Vodafone Arena, MCG, Etihad Stadium and AAMI stadium. There is no shortage of things to do in the CBD. Enjoy walks along the Yarra, strolling through the Royal Botanical Gardens or getting a good look over it all at Eureka Tower. Consider also that if it's going to cost you a few dollars extra to stay in the CBD, you will save a few dollars by not having to catch a tram in. There's also a free tram that circles the CBD, allowing you to get around very cheaply.

Popular accommodation in Melbourne CBD

618 Lonsdale Street

City Tempo - Lonsdale St

568 Collins Street

Melbourne SkyHigh Apartments

123 Collins Street

Grand Hyatt Melbourne

More options in and around Melbourne CBD


Just south of the CBD on the other side of the Yarra, you will find Southbank. This is home to Melbourne's Arts Precinct which includes the wonderful National Gallery of Victoria (International) , the Australian Centre for Contemporary Art, the Arts Centre and various other important cultural institutions. It is also home to Crown Casino and all the entertainment that goes with that.

The waterfront walk is popular for visitors and locals alike and there are beautiful gardens to stroll through just across St Kilda Rd. There is ample accommodation in this part of town, in particular apartments in the many skyscrapers that have popped up in the last couple of decades. Melbourne's tallest skyscrapers are on this side of the river including Eureka Tower and Australia 108, the two tallest buildings in Australia.

Southbank is an ideal location for any visitor to Australia and in particular for those with an interest in the arts.

Popular accommodation in Southbank

67 Power Street, Southbank.

City Tempo - Power St

1 Freshwater Place

Sanctuary Apartments - Freshwater Place

8 Whiteman Street

Crown Metropol Melbourne

More options in and around Southbank
North Melbourne

North Melbourne

Within walking distance of the CBD, North Melbourne provides a good range of cheap hotels and hostels. This is within easy walking distance of the CBD. Multiple trams also head this way, so you should have no trouble getting into the center when you need to. The main attraction in North Melbourne is the Victoria Market, where you will be able to save even more money by buying cheap fresh food and souvenirs for family back home. It's a great place to visit for lunch, coffee or just to have a browse around.

Popular accommodation in North Melbourne

33 Blackwood Street

Turnkey Accommodation-North Melbourne

139 Chetwynd Street

RNR Serviced Apartments North Melbourne

33 Blackwood Street

IFSuites (IFSTAYS) North Apartment

More options in and around North Melbourne
St Kilda

St Kilda

A traditional beachside tourist resort area, St Kilda has become a first choice for backpackers visiting the city. It's about 20 minutes out of the CBD by tram and unfortunately no train lines go here. The great attraction of staying in St Kilda is that there is a beach on your doorstep and a great walking trail along the foreshore. There are also a large number of restaurants, bars and pubs along the two main strips of Acland Street and Fitzroy Street. Luna Park, the city's iconic amusement park is also located in St Kilda.

Popular accommodation in St Kilda

1 Eildon Road

Quest St Kilda Bayside

25-47 Barkly Street

Crest On Barkly Serviced Apartments

163 Fitzroy St

COMPLETE HOST Fitzroy St Apartments

More options in and around St Kilda


Fitzroy and neighbouring Collingwood are great places to be if you enjoy somewhat more bohemian surrounds. It's still within walking distance of the city and a few tram lines run through it making access easy. Nearby you will find the Melbourne Museum and Royal Exhibition Building. A short walk away is also Carlton, where you can find an abundance of Italian restaurants and cafés.

Popular accommodation in Fitzroy

44 Brunswick Street

Melbourne Metropole Central

124 Napier Street Apt. 14

Converted Blue Stone Church

Stylish Apartment in Unique Church Development

More options in and around Fitzroy


The Docklands is a recently developed area of Melbourne that has a lot of apartment accommodation on offer in particular. Unless you happen to be visiting to see a sports match at Marvel Stadium, it is a bit removed from the city's main attractions and activities. The Docklands are however within Melbourne's free tram zone so it won't cost you anything other than a little time to get into the CBD.

Being on the water is appealing, but it does have its downside - Docklands has a reputation for being very windy.

Attractions in the Docklands include the Melbourne Star observation wheel, ArtVo and the O'Brien Ice House where you can get a little ice skating in.

Popular accommodation in Docklands

883 Collins Street

Wyndel Apartments - Riverside On Collins

883-889 Collins Street

Best Views on Collins

60 Siddeley Street

Signature Waterfront Apartments

More options in and around Docklands

South Yarra

If you are in town for a bit of retail therapy than you can't really go past South Yarra. Chapel Street is packed with designer boutiques to keep you browsing for hours. And when you work up a thirst, there is an ample supply of great cafés, bars and restaurants to keep you nourished.

It is only a short tram ride to Melbourne's centre or St Kilda beach.

Attractions in South Yarra

Popular accommodation in South Yarra

27-35 Malcolm Street

Amazing Accommodations: Vogue

637 - 641 Chapel Street, South Yarra

Art Series - The Olsen

32, Bray St South Yarra

Amazing Accommodations : South Yarra

More options in and around South Yarra


You will find Richmond to the east of Melbourne. It has great access to the city and is a popular place to stay particularly if you are planning on attending one of the many sporting events that is hosted at the Melbourne Cricket Ground or tennis precinct. There is a great selection of restaurants and cafés around the area that is sure to make your stay in this part of the city very enjoyable. Most of the accommodation in this area is apartments and vacation rentals.

Popular accommodation in Richmond

185 Lennox Street

Adara Richmond

204 / 366 Church Street

Apartments in Richmond Church St near MCG

353 Church Street

Richmond Hill Hotel

More options in and around Richmond


Carlton lies just to the north of the CBD and is another great inner suburb to base yourself in. Depending on your exact location in Carlton you could walk into the city from here. There are also plenty of world class attractions in Carlton itself. The Royal Exhibition Building is a UNESCO World Heritage listed site, being one of the world's last major 19th-century exhibition buildings. Right next door is Melbourne Museum which provides a fantastic permanent exhibit of typical museum fare and some excellent rotating exhibits as well. It is very popular with kids especially.

After a bit of culture, wander down to Lygon Street. This is Melbourne's Little Italy. You will find no shortage of great Italian food, cool cafés and swanky bars. If you like art house movies, the Nova cinema will deliver for you. Or head to one of Melbourne's most popular bookstores - Readings - to pick up a good book for your downtime.

Accommodation is not in huge supply in Carlton, but there are certainly a few hotels in the area as well as some apartments and short term private rentals.

Attractions in Carlton

Popular accommodation in Carlton

145 Queensberry Street

Arise The Eminence

66 Lygon Street

Zagame's House

Cnr. Grattan & Drummond Streets


More options in and around Carlton

67 Power Street, Southbank.

City Tempo - Power St

145 Queensberry Street

Arise The Eminence

883 Collins Street

Wyndel Apartments - Riverside On Collins

883-889 Collins Street

Best Views on Collins

1 Freshwater Place

Sanctuary Apartments - Freshwater Place

618 Lonsdale Street

City Tempo - Lonsdale St

8 Whiteman Street

Crown Metropol Melbourne

60 Siddeley Street

Signature Waterfront Apartments

883-889 Collins Street

Winston Apartments Docklands

568 Collins Street

Melbourne SkyHigh Apartments

889 Collins Street

Orange Stay Apartments

187 City Road

City Tempo – Southbank Collection

123 Collins Street

Grand Hyatt Melbourne

Budget Option

85 Market St, Southbank

Serviced Apartments Melbourne - Teri

33 Grattan street

AKOM Prahran

915 Collins Street

Melbourne Private Apartments - Collins Wharf Waterfront, Docklands

241 City Road

City Tempo - MP Deluxe

6-8 Buckley Walk, Docklands

Orange Stay Townhouses

Frequently Asked Questions

What is the best area in Melbourne for nightlife?

Melbourne's CBD is packed with restaurants, bars, clubs and pubs that stay open late. If you are after a good time out this is the best choice.

Is Melbourne a safe city?

Melbourne is a very safe city. As for any large city, you will need to use some common sense especially when out late at night.

Where is good to stay for the Australian Open?

The Australian Open takes place every summer in Melbourne and draws thousands of visitors. Melbourne Park where the tournament is held is within walking distance of the CBD, Southbank, Richmond and South Yarra. Any of these neighbourhoods are a good choice to stay in for the Australian Open. Book early though as the city does book up at this time of the year.

Which area is best to stay in for the Australian Grand Prix?

The Australian Grand Prix is generally held in March and takes place in Albert Park. Areas south of the Yarra are good choices if you are going to the Grand Prix. St Kilda, Albert Park, South Melbourne, Southbank and South Yarra would all be good choices. The CBD is also not far by public transport and also allows you access to many of Melbourne's other great attractions. Book early to ensure you get the best prices.

How far in advance do I need to book?

There is generally plenty of accommodation in Melbourne. Booking in advance is especially advisable when there are major events on such as the Australian Grand Prix or Australian Open.

What are the best areas for families?

Most of Melbourne's areas provide good options for families. Southbank is a very convenient option, both close to the city and with great access to large parklands. You could also choose to stay in one of the inner suburbs like Carlton which is close to Melbourne Museum and also has beautiful parks to wander around. If you are keen on a beach, then St Kilda is also a good option.

What is the best area to stay for first time visitors?

The CBD or Southbank are both excellent choices for first time visitors as they provide the best access to the most attractions.

What is the best area to stay for backpackers?

St Kilda is very popular for backpackers. There are a few good hostels to choose from in this seaside suburb. There are also good options in North Melbourne and a few hostels to choose in the CBD as well.

Where can I stay near the beach in Melbourne?

St Kilda is the best choice if you would like to stay near the beach. Bear in mind though that this does mean you will need to take a short tram ride to get into to the city.

What is the area to stay for shopping?

The CBD has plenty of shopping available to keep you browsing for your entire trip. A little further afield you can also stay near Chapel Street in South Yarra.