Originally an area dominated by orchards and small-scale farming, Forest Hill underwent rapid residential development in the post-WWII era, specifically the 1950s and 60s. The opening of Forest Hill Chase in 1964 as one of Australia's first major shopping centres cemented its status as a residential hub.
A leafy, established suburb characterized by well-maintained brick veneer homes on generous allotments, popular with multi-generational families.
- Excellent retail amenity with Forest Hill Chase providing everything from groceries to cinema.
- Large block sizes (typically 550sqm+) offer significant renovation or extension potential.
- Quiet, tree-lined streets with minimal through-traffic in residential pockets.
- Strong community feel with active local sporting clubs and community centres.
- Proximity to major employment hubs in Box Hill and Mulgrave via EastLink.
- Heavy traffic congestion on Springvale Road and Canterbury Road during peak hours.
- Significant distance to the nearest train station (Nunawading or Blackburn).
- Aging infrastructure in some 1960s-era homes requiring costly updates.
- Limited nightlife or 'trendy' cafe culture compared to inner-east suburbs.
- Increasing number of dual-occupancy developments impacting street parking.
How this suburb feels day-to-day.
Dominant dwelling stock.
Typical entry to ceiling.
Forest Hill represents the 'sweet spot' for families who are priced out of Blackburn but want better amenities than deeper eastern suburbs. It is a low-turnover area where residents tend to stay for decades.
$1.15m – $1.75m
$620k – $980k
12-month movement
Current asking rents
The price gap between unrenovated 1960s homes and modern 'knock-down-rebuilds' is widening, creating opportunities for value-add buyers.
Price comparison
Median price ÷ median income
Estimated rental yield
While more affordable than the inner-east, Forest Hill requires a significant deposit. It is increasingly difficult for first-home buyers without parental assistance.
Lower = tighter market
Avg time on market
Annual rental increase
Young families and professionals working in the eastern suburbs or Box Hill medical precinct.
Strong capital growth potential and low vacancy rates make it a safe 'land bank' play, though yields are modest.
- Ongoing gentrification as older residents downsize and younger families renovate.
- Proximity to the Box Hill 'second CBD' driving overflow demand.
- Scarcity of large residential blocks in the middle-ring east.
- Continued investment in Forest Hill Chase and local parklands.
- Rising land tax and interest rates impacting investor participation.
- Lack of major new infrastructure projects directly within the suburb.
- Competition from Vermont South which offers tram access.
Expect steady, low-volatility growth. Forest Hill will likely track slightly above the Melbourne metropolitan average due to its high land-to-asset ratio.
vs last 12 months
Relative comparison
Check local police statistics for the area immediately surrounding Forest Hill Chase, which can occasionally see higher rates of opportunistic theft.
The primary risks are related to property condition and traffic rather than environmental hazards.
Very low risk; most of the suburb is elevated. Check Whitehorse Council flood maps for properties near Mahoneys Reserve.
Negligible risk in this urbanized area.
Standard premiums apply; no known suburb-wide insurance loading.
Significant Landscape Overlay (SLO9), Vegetation Protection Overlay (VPO)
Consolidation of lots along Canterbury Road for medium-density townhouses.
Overlays protect the leafy character of the suburb, meaning removing large trees for development can be difficult and requires council permits.
Heavily reliant on bus routes (703, 735, 765) and private vehicles.
Excellent. Forest Hill Chase is a comprehensive retail and entertainment destination.
High quality. Bellbird Dell offers beautiful walking trails and native vegetation.
Strong. Forest Hill College has seen significant improvement in recent years.
Good. Numerous GP clinics locally, with Box Hill Hospital approximately 15 minutes away.
A mature, multicultural community with a high proportion of Australian-born and Chinese-heritage residents.
The high owner-occupancy rate indicates a stable community where residents take pride in property maintenance.
Focus is on incremental residential infill and upgrades to community facilities.
- Upgrades to the Forest Hill Chase retail mix.
- Refurbishment of local sporting pavilions at Mahoneys Reserve.
- Ongoing improvements to the Whitehorse cycling network.
- Increased traffic density on local connector roads.
- Loss of backyard canopy trees due to townhouse subdivisions.
Residents value the suburb for its safety, convenience, and 'old-fashioned' neighborhood feel where people know their neighbors.
It's the perfect place to raise kids. The parks are fantastic and everything you need is at 'The Chase'.
Love the house and the area, but the bus-to-train commute can be a bit of a drag in winter.
Never had a problem finding tenants. Families really want to be in this school zone.
- Prioritize properties within walking distance of Forest Hill Chase to maximize future resale value.
- Check if the property falls within the Vermont Secondary College zone (select southern pockets), as this adds significant value.
- Look for homes with north-facing backyards to maximize light in mid-century layouts.
- Factor in a renovation budget for 1960s homes that may still have original wiring or plumbing.
- Attend multiple auctions to gauge the true 'emotional premium' being paid for renovated homes.
- Is this property within the Vermont Secondary College catchment zone?
- Has the house been professionally cleared of asbestos during any previous renovations?
- Are there any active planning permits for multi-unit developments on this street?
- What is the age of the hot water service and main switchboard?
- How many groups have requested contracts or building reports so far?
- Are there any known issues with the drainage or sewerage lines (common in older parts of the suburb)?
- Highlight any energy-efficiency upgrades (solar, double glazing) as these are highly prized by modern buyers.
- Ensure gardens are neatly landscaped; the 'leafy' appeal is a major selling point in 3131.
- Professional staging is essential to help buyers visualize how to use older, sometimes quirky, floorplans.
- Target young families by emphasizing proximity to Parkmore Primary or Forest Hill College.
Position the property as a 'forever home' with solid bones and room to grow. Emphasize the lifestyle convenience of the nearby retail and parkland.
A low-risk capital growth play with high land value.
Low rental yields and potential for high maintenance costs on older dwellings.
- Target 3-bedroom houses on 600sqm+ blocks.
- Perform a thorough building inspection for asbestos and stump condition.
- Consider a cosmetic refresh (paint/floors) to maximize rental appraisal.
- Hold for a minimum 7-10 year cycle to capture capital growth.
- Apply quickly for properties near the shopping centre as they lease fastest.
- Check bus schedules to ensure your commute to the train is viable.
- Look for older units which often offer more space than new builds for the same price.
Quiet streets and great access to shops and gyms.
Limited public transport late at night; a car is almost essential.
- Regularly maintain gutters and trees to prevent drainage issues.
- Consider allowing pets to tap into the high family demand.
- Ensure heating and cooling systems are modern and efficient.
Ensure all properties meet the latest Victorian rental minimum standards, particularly regarding insulation and electrical safety.
- Stock levels remain tight, leading to competitive auction environments.
- Buyers are increasingly wary of 'flipped' properties with poor quality finishes.
- The 'school zone' effect is the single biggest driver of price premiums.
The '15-minute suburb'—where everything from school to cinema is within a short drive or walk.
Young families upgrading from apartments in Box Hill or Glen Waverley.
This report is based on historical data and market projections as of March 2026. It does not constitute financial advice. Property values can fluctuate, and buyers should conduct their own independent research and seek professional legal and financial counsel before purchasing.
