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Where to Stay in Melbourne During Your Visit (Updated 2023)

The towering skyline of Melbourne, Australia with trees and a bridge in the foreground near the river

Posted: 3/7/2023 | March 7th, 2023

Melbourne is probably my favorite city in Australia. While Sydney boasts the more iconic tourist attractions, Melbourne is more laid-back and a hub for arts and culture.

Home to over five million people, it has a diverse population and something of a European feel, home to plenty of festivals, art exhibitions, live music, stunning street art, chill bars and cafés, and delicious food. You could easily spend over a week here and only scratch the surface when it comes to things to see and do.

While public transportation goes everywhere, Melbourne is a bit sprawled out, so it’s important to choose the area where you stay carefully, otherwise you’ll spend most of your trip in transit.

To help you decide where to stay in Melbourne, in this post, I’ll highlight the best neighborhoods below so you can choose the area that suits your travel style and budget as the neighborhoods in this city all have their own feel.

But, before I get to the specifics, here are some common questions I get asked about neighborhoods in Melbourne:

What’s the best neighborhood for first-time visitors?
City Center, or “the CBD,” as locals are prone to call it, has something that will please most travelers. It’s crammed with great museums, monuments, cafés, restaurants, and bars. It’s the most central spot for doing lots of sightseeing.

What’s the best neighborhood for families?
St. Kilda is an old bohemian swath that happens to have the highest number of restaurants in town. But the neighborhood is also home to Luna Park, the world’s oldest theme park, plus it’s situated right on the sea. (Note this is also a great area for backpackers too!)

What’s the best neighborhood for shopping?
Shopaholics will be in heaven along boutique-lined Chapel Street in South Yarra.

What’s the best neighborhood for foodies?
Fitzroy is laden with incredible eateries — from classic and traditional bites to cutting-edge spots. I also think this is just a cool area to hang out in too.

What’s the best neighborhood for feeling like a local?
Richmond, located east of the center, has a diverse number of things to do that locals partake in, like eating, drinking, and shopping. Plus it’s home to “Little Saigon.”

What’s the best neighborhood overall?
It’s hard to pinpoint just one Melbourne neighborhood as “the best,” but City Center fits this category because of its location and because it has a little bit of everything for…

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