Melbourne's best neighborhoods to base yourself in

Like many cities, Melbourne is more a collection of villages than a single unified city. Developed throughout the city's varied history, each suburb has its own distinct character; from architecture to streetscapes.

The city center and Southbank have the highest concentration of major sights, while other crowd-pleasers are scattered around the city’s fringes. But rest assured, every neighborhood in inner Melbourne is brimming with accommodation, cool bars, stand-out cafes, international cuisine, lush parks, and small independent stores and galleries to get lost in.

No matter where you base yourself, you’ll quickly realize why Melbourne is voted one of the world’s most liveable cities, again and again.

1. The city center

Best for accommodation options

The city center (locals call it "the CBD," short for "central business district") has the highest concentration of accommodation options. From apartments and boutique designer hotels to indulgent luxury, it’s all here. There’s even a rooftop glamping option, for something completely different, where guests stay in 1970s Airstream campervans atop a city car park.

Staying in the city center puts you in the heart of the action and you’re spoiled for transport options to visit outlying neighborhoods. The CBD was once mostly busy with workers and shoppers, but over the last couple of decades, high-rise apartments have filled the center of town with residents, breathing life into the city streets day and night.

You could spend a week exploring the small bars, incredible restaurants, laneway street-art galleries, and ornate arcades before you’ve even thought about what’s beyond the city grid.

2. Southbank

Best for riverside strolls

Formerly an industrial zone, Southbank was rebuilt and rebranded as an exciting new precinct in the 1990s. This riverside promenade is peppered with big-name international restaurants and hotels, and buttressed by a big splashy casino that draws a crowd. However, with its Yarra River views and multiple exemplary arts institutions like the NGV: International, this is a perfectly positioned neighborhood to base yourself. It has plenty of accommodation to choose from and is a short walk to the city center.

Continue further west on foot (or by bicycle) to where the Docklands have birthed a mini-city of high-rise apartments, restaurants, plazas and public art. It’s a surprisingly good area to visit, yet to many locals, Southbank and the Docklands remain slightly touristy and a little "un-Melbourne" (if only they could see them with fresh eyes as visitors do!). Put South Wharf’s Boatbuilders Yard; the river bar Ponyfish Island; and a yum cha banquet at Spice Temple on your Southbank itinerary and you’ll be crowing about this neighborhood to everyone.

3. Fitzroy & Collingwood

Best for pubs, bars and cafes

Despite the lack of major sights, there are myriad reasons to base yourself in the neighborhoods of either Fitzroy or Collingwood to the city's north. They are both a short tram ride from the city center and the food-and-drink scene here is top notch. For shoppers, vinyl and midcentury furniture shops sit beside hip clothing boutiques and contemporary art galleries.

Smith and Gertrude Streets are the place for intimate bars, secret cocktail spots plus cafes, while the best local pubs are peppered among the backstreets – many with leafy beer gardens for sunny afternoons or a log fireplace for extra warmth in winter.

For a slice of nature, continue on to Abbotsford for a stroll around the eucalypt trees in the convent gardens and the charming children's farm next to the Yarra River.

One of Melbourne’s favourite rooftop bars, Naked for Satan gives you views over the neighborhood and is the perfect spot to orientate yourself over a sunset drink. Stomping Ground, in a former cigarette factory, is a popular brewery and beer hall with wood-fired pizza to keep you going. Refuel with a divine coffee at Everyday Coffee or Proud Mary. Hit a backstreet public house stalwart like the Napier Hotel for burgers and beers. Then cozy into a wine bar like The Moon for a glass or two from a global wine list. 

4. St Kilda

Best for nostalgic seaside holiday vibes

St Kilda is Melbourne's tattered bohemian heart, a place where a young Nick Cave (one of Australia's most revered musical exports) played gloriously chaotic gigs at the Crystal Ballroom, and one that's featured in songs, plays, novels, TV series and films. Originally a 19th-century seaside resort emulating England’s Hastings or Brighton, this neighborhood has played many roles: post-war Jewish enclave, red-light district and punk-rocker hub.

It's a complex jumble of boom-era Victorian mansions, raffish Spanish Moorish apartments, and seedy side streets. Take a ride on the vintage roller coaster at Luna Park and visit nostalgia-inducing theatres like the Art Deco-era Palais Theatre and the picture palace, The Astor. You'll find excellent dining options here and in the well-heeled neighboring suburbs of Elwood and Elsternwick.

5. Carlton

Best for families with young children

Carlton is home to Melbourne's Italian expat community and a strong international student population, thanks to the University of Melbourne. It’s a hop and a skip from the city bordered by the leafy Carlton Gardens where you’ll find the UNESCO-listed Royal Exhibition Building as well as the kid-friendly Melbourne Museum.

From here, it's a short walk west to Lygon Street, the heart of Carlton, where you can sample Melbourne's Italy-inspired cafe life and visit a Melbourne institution – Readings bookstore (there’s a special children’s bookstore next door). Surrounding streets have a pretty village feel, with wide avenues and grand Victorian terraced houses. On the west side of Carlton in Parkville is Melbourne Zoo with its collection of cute native Australian marsupials, and an excellent children’s playground in Royal Park.

6. Richmond

Best for lovers of sports

Richmond is the nexus for all things sporting in Melbourne. The neighborhood's southwestern skyline is dominated by the angular shapes of stadiums, none more hulking than the mighty Melbourne Cricket Ground (MCG). But it also boasts some great dining options, particularly the Vietnamese enclave around Victoria Street. Bridge Road and Swan Street offer a mix of shopping, storefront cafes and decent pubs (the Corner is a much-loved live music venue).

If you’re a sports fan, this is the neighborhood for you. The roar of the crowds at the MCG – which hosts up to 100,000 people – is a fixture in winter when AFL (Australian Football League otherwise known as "Aussie Rules") matches are held day and night over the weekend. The Melbourne Marathon is held in October and ends here so expect road closures and masses of fit (yes in both sense of the word) Australians everywhere. In summer, the cricket is held at the MCG including the international Boxing Day Test match, bringing fans from the competing side in droves (tickets for Day One of the 2025 Australia vs India Test sold out quickly).

Later in the month, merry-making crowds descend on Melbourne Park for Australia's Grand Slam tennis championship the Australian Open. During the tennis, Birrarung Marr hosts live music and a mini theme park for kids. Finally, the Australian Sports Museum at the MCG features exhibits focusing on Australia’s favorite sports and historic sporting moments as well as interactive activities for children.