With its coastal yet community feel and array of affordable homes on offer, this up-and-coming Melbourne suburb has seen a new wave of buyers recognise the locale’s potential.

Located 17km south west from the Melbourne CBD and five minutes from Altona Beach, Altona Meadows was featured in the realestate.com.au Hot 100 list of suburbs expected to outperform in 2024, nominated by buyer agent Cate Bakos for its affordability.

“From a value proposition, I think that it's an advantage because it's relatively close to the city for its price point and you've got a very friendly neighbourhood around you,” Ms Bakos said.

A welcoming atmosphere, a leafy feel coupled with reasonably good amenity such as schools, arterial roads and shops were strong buyer drawcards for Altona Meadows, Ms Bakos said.

“It's got 1980s, 1990s style dwellings and there's a healthy blend of houses and units. It's not oversaturated with units,” she said.

With a median house price of just under $730,000, PropTrack senior economist Angus Moore said Altona Meadows was an affordable alternative to buying in the CBD.

“In terms of how its performed in the past year, prices for houses are down a little bit, about 1.5% and units are up – it's not a huge unit market – so there is some volatility in that but that’s broadly consistent with what we are seeing in Melbourne’s west, which has been a bit slower growing over the past three to four years,” he said.

Affordability is one Altona Meadows' big drawcards, with this three bedroom freestanding home on the market for $530,000 - $570,000. Picture: realestate.com.au

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Julian Montebello, principal at Hockingstuart Altona who has lived in Altona Meadows all his life said during his childhood the suburb was traditionally dominated by an older European demographic.

But in recent years that has gentrified to a very multicultural community, he said, with young families in the 30 to 50 year age group the predominant buyers.

“Primarily due to that affordability, the bracket that it fits in, you're seeing a lot of first time buyers spending in that $600,000 to $800,000 bracket,” he said.

“They pop up a lot and make good homes for people to start out and start a family.”

Altona Meadows is close to the city with a sleepy suburban feel. Picture: Getty

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Supply has been short, Mr Montebello said, with many buyers recognising a home in Altona Meadows was a good option with three bedroom, two bathroom homes with generous living areas typically priced anywhere from $700,000 to $800,000.

“It's actually popular because of the price, the lifestyle, the golf course, the basketball stadium, which is a really big draw card for locals.”

An abundance of well-regarded primary schools were also a strong lure for families looking to buy in the suburb, he said.

An abundance of parks and wetlands offer peaceful outlooks and plenty of space. Picture: realestate.com.au/sold

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Benjamin Wigg, partner at Sweeney Altona said in February alone, he and his team sold 13 homes in the suburb.

“So probably 10 out of the 13 went at the top end or above, with competition,” he said.

Describing Altona Meadows as a “sleepy” suburb, Mr Wigg said he believed property values were a bit behind their true value.

“If you look at any other suburb in proximity to the CBD, proximity to the beach, with its own shopping centre, public transport and no traffic, you're paying over a million dollars,” he said.

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Ms Bakos said investors have also set their sights on Altona Meadows.

“I am supporting investors with that price point if they're looking for a house on its own full block, as opposed to units," she said.

"The yields, based on Melbourne yields, are reasonably healthy because the price points are lower than your average house on land and the opportunity to upgrade internally is pretty good.

“A lot of them are solid builds that just need a kitchen and bathroom makeover, with paint and new carpet and they come up really well.”