Planning a trip to Melbourne? Finding the best area to stay in Melbourne will help you get the most out of your trip to the city, especially as Melbourne is famous for its dynamic and eclectic neighbourhoods. The best areas to stay in Melbourne include the Melbourne CBD, Carlton, Fitzroy, Richmond, Southbank and St Kilda, depending on the type of trip you’re planning. I’ve lived in Melbourne for nearly a decade, and love sharing the best of the city with my family, friends, and now, you!
Melbourne City (CBD)
Melbourne CBD is genuinely one of the best places to stay in Melbourne, especially for first time visitors. For international readers, CBD stands for Central Business District – AKA, the city centre or downtown. Melbourne has the most beautiful and lively CBD in Australia, which is an experience in itself. Explore the city’s famous laneways and street art, find hole in the wall coffee shops and enjoy the city’s beautiful and eclectic architecture. I recommend staying at QT Melbourne, which is an exuberant, stylish hotel brand with an excellent location in the heart of Melbourne CBD. We stayed here for a staycation anniversary one year and it was perfect!
Of course, you’ll also find many of the best restaurants in Melbourne in the city, like Gimlet, Grill Americano, Reine & La Rue to name just a few. Sights include Federation Square, Flinders Street Station, the NGV Australia and the State Library of Victoria.
I would avoid staying on King Street, which is somewhat of a red light district, and Lonsdale, purely because it’s so far north in the city. The best parts of Melbourne CBD are east of Swanston Street, and south of Little Bourke Street – effectively the southeast corner of the city.
Staying in the Melbourne CBD also means it’s a short walk across the river to Southbank, the Arts Centre and the NGV, or a short walk north of the city into Carlton and Fitzroy. You can also get the 96 tram from the CBD to St Kilda.
Carlton
Carlton is one of the best neighbourhoods to stay in Melbourne, with bustling Lygon Street, the pretty Carlton Gardens and the UNESO World Heritage Listed Royal Exhibition Building. Carlton is a great area to stay in Melbourne for visitors also because it’s wedged between the Melbourne CBD and Fitzroy, which are two other must-visit neighbourhoods in Melbourne. Located on Melbourne’s northside, it’s the perfect base for a few days of exploring Melbourne’s most famous neighbourhoods and precincts.
Read my Carlton Neighbourhood Guide
Fitzroy
Much like Carlton, Fitzroy is one of Melbourne’s most famous neighbourhoods and is well located near the CBD and some of the city’s most interesting neighbourhoods and precincts. Fitzroy is the best area to stay in Melbourne to experience what makes Melbourne so unique – with dozens of independent cafés, shops, galleries, live music venues, bars and restaurants. The best places to hang out in Fitzroy are along Smith St, Brunswick Street & Gertrude Street.
St Kilda
On Melbourne’s southside, St Kilda is the best neighbourhood in Melbourne for backpackers. Melbourne’s most famous beachside suburb, St Kilda is a historic neighbourhood with a long and colourful history. While St Kilda’s charms have faded a little bit in recent years, it’s still a very popular neighbourhood, especially in summer. Check out the iconic façade of Luna Park, catch a show at the historic Palais Theatre, hang out on the waterfront and on the beach, or explore Acland Street.
Southbank
You’ll find loads of accommodation options in Southbank, which is a precinct on the Yarra River directly across the river from the CBD. Crossing the Yarra is a short walk across one of several footbridges, so it’s perfect for a weekend exploring the Melbourne CBD, visiting the NGV or seeing shows at the Arts Centre in Southbank. While Southbank doesn’t have the local neighbourhood vibe of other neighbourhoods on this list, it’s super central and convenient, and the waterfront precinct is a lovely part of Melbourne for visitors.
Richmond
If you’re visiting for the Australian Open, the AFL Grand Final, the cricket or another major sporting event at the MCG or Rod Laver Arena, Richmond is the best area to stay in Melbourne. Richmond is a central Melbourne neighbourhood, located east of the city, with a high density of bars, pubs and nightlife. You’ll find the most activity along Church Street and Swan Street in Richmond, which can be lively until the early hours of the morning. Avoid staying on Victoria Street which has noticeable safety concerns.
South Melbourne
South Melbourne is one of the most historic neighbourhoods in Melbourne, and a great place to stay for visitors. The charming, historic streets are quintessentially Melbourne, and the cavernous South Melbourne Market is one of the best things to do in Melbourne (open Wednesday, Saturday & Sunday). South Melbourne has a charming neighbourhood atmosphere, and is well connected by tram (Route 96) to the city, Albert Park and St Kilda.
Find accommodation in South Melbourne
South Yarra
South Yarra is one of the best places to stay in Melbourne for a short city break. South Yarra is a centrally located suburb on Melbourne’s southside, directly south of the Yarra River. South Yarra is close to the Botanic Gardens and the Yarra River, is just two stops on the train from the Melbourne CBD.
Find accommodation in South Yarra
Getting around Melbourne
Melbourne is famous for its trams, which run throughout the city. Buy a Myki card from a 7-11 or a major train station and use it to catch trams, trains and buses all over the city. Trams are a great way to get around Melbourne, particularly in the CBD, where trams are free. You’ll need to tap on if you’re going past the CBD.
Hello! I’m an Australian travel blogger, living in Melbourne, Australia. I grew up in Brisbane, studied in Paris, lived & worked in New York City and now live in Melbourne, Australia.
I love sharing specific and useful recommendations, itineraries and guides for the most beautiful things to see, do, experience & eat wherever I go.
My favourite travel destinations are Australia, New York City & surrounds, France, Greece & Japan, but I’m always excited to explore somewhere new!
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