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Boronia vs Ferntree Gully: the same postcode belt, $320,015 apart

Boronia or Ferntree Gully — which gives an investor more for the money in Melbourne's outer east?

Steven JinSteven Jin — Chief Acquisitions Officer··8 PremiumRea settlements behind this page
The verdict

Short answer: Boronia for anyone buying land to build on, Ferntree Gully only if the school catchment is the point

This is the widest land-per-dollar gap in the series. Our 6 Boronia settlements (April 2023 – April 2025) came in at a median $815,290 on a median 1,004 sqm; our 2 Ferntree Gully settlements (June 2023 – August 2025) came in at a median $1,135,305 on 641 sqm. That is 363 sqm more land for $320,015 less. For anyone whose plan involves a second dwelling, that is not a close call — Boronia's median lot clears the 300 m² Victorian threshold with room for a 60 m² dwelling and a driveway, and 4 of our Boronia settlements were exactly that, at a median gross yield after works of 5.61%. Ferntree Gully's counter-argument is schooling: Heritage College Knox at #18 of 607 and Mountain Gate Primary School at #150 of 1,285, against #265 and #212 in Boronia. If the catchment is the asset, pay for it. If the land is the asset, do not.

Which one, for whom

The answer changes with your situation — here is each one, decided

You want to build a second dwelling

Boronia. Median land of 1,004 sqm against 641 sqm — 363 sqm of difference — at $320,015 less on the median purchase price. 4 of our 6 Boronia settlements were second-dwelling additions with a median gross yield after works of 5.61%; none of our 2 Ferntree Gully settlements were.

You are buying for a family to live in

Ferntree Gully. 9 indexed schools against 4, with Heritage College Knox at #18 of 607 on 2025 VCE results and Mountain Gate Primary School at #150 of 1,285 on 2025 NAPLAN.

Your ceiling is under $900,000

Boronia is inside it and Ferntree Gully, on our record, is not — median settled prices of $815,290 and $1,135,305. Our two Ferntree Gully settlements were both larger, established purchases; this is a real budget wall rather than a preference.

You want the highest gross yield with no works

Neither convincingly. Boronia's cosmetic-only median gross yield after works is 4.69% on 2 settlements and Ferntree Gully's is 5.63% on 2. Both samples are too small to separate, and both sit below Boronia's second-dwelling median of 5.61% on 4 settlements.

The principle

The rule this comparison is an instance of

Across 144 granny-flat additions in Cranbourne, Cranbourne North, Hampton Park, Narre Warren (January 2023 – September 2025), the median gross yield after works — weekly rent x 52 divided by purchase price plus works spend — landed between 5.82% and 5.86% in every one of those four suburbs, a 0.04 percentage-point spread, while inside each of those same suburbs the gap between a granny-flat addition and a cosmetic renovation was 0.51 to 1.03 points, across 48 cosmetic-only settlements. In our own record, what the block let us build moved the gross yield more than which suburb we bought in.

Boronia and Ferntree Gully are two kilometres apart in the same council, the City of Knox, on the same rail line. Almost nothing separates them as markets. What separates them in our record is that Boronia's median lot is 1,004 sqm and Ferntree Gully's is 641 sqm — and lot size is the variable that decides whether the second-dwelling pathway is open at all. The suburb name is doing no work here; the land is doing all of it.

Side by side

Boronia vs Ferntree Gully: what our own settlements record

PremiumRea settlement medians
BoroniaFerntree Gully
PremiumRea settlements on record62
Settlement windowApril 2023 – April 2025June 2023 – August 2025
Median purchase price$815,290$1,135,305
Median weekly rent after works$945$1,225
Median land size1,004 sqm641 sqm
Median works spend$83,900$0
Median total capital deployedpurchase price + works spend — this is the yield denominator$871,915$1,135,305
Median gross yield after worksweekly rent × 52 ÷ (purchase price + works spend); gross — excludes land tax, management, insurance, maintenance, vacancy and interest5.06%5.63%
Median purchase price to Nov 2025 valuationa dollar observation against one valuation round over 1–3 year holds, not a growth rate$125,000$216,920
Granny-flat additions (median gross yield after works)4 · 5.61%none on record
Rooming-house conversions (median gross yield after works)none on recordnone on record
Cosmetic renovation only (median gross yield after works)2 · 4.69%2 · 5.63%

Every figure in the settlement columns is recomputed at build time from PremiumRea's published transaction dataset — 345 anonymised settlements, January 2023 – September 2025, CC-BY-4.0, DOI 10.5281/zenodo.20095886. DENOMINATOR: the settlement gross yield is weekly rent × 52 ÷ (purchase price + works spend), verified against all 345 rows — so it is a return on total capital deployed, and dividing the median rent by the median price will not reproduce it. Research-profile columns are market estimates, not settlements, and their implied gross yield is recalculated as weekly rent × 52 ÷ purchase price rather than quoted.

DOI 10.5281/zenodo.20095886 · Dataset and methodology

Research profile

The market-level profile, for context

These are market estimates of typical investor stock, not settlements. The gross yield is recalculated from each profile's own rent and price rather than quoted, so it cannot contradict the two numbers beside it.

Research profile
BoroniaFerntree Gully
Typical investor purchase price$879,000$1,200,000
Typical weekly rent$883$1,200
Implied gross yieldrecalculated as weekly rent × 52 ÷ purchase price, never quoted5.22%5.20%
Typical land size957 sqm641 sqm
The analysis

The land gap is not a rounding difference

363 sqm between median lots is the difference between a block that comfortably accommodates a 60 m² second dwelling with compliant setbacks and one where it becomes an argument with the surveyor. Boronia's median of 1,004 sqm sits more than three times the 300 m² permit threshold; Ferntree Gully's 641 sqm clears the threshold too but leaves far less working room once the existing dwelling footprint, private open space and access are taken out.

This is also why the price comparison is not what it looks like. On our medians Boronia is $320,015 cheaper, and the buyer is getting the larger asset. That combination is unusual and it is the entire reason this page reaches a one-sided verdict where most of the series does not.

What each sample can and cannot support

Boronia: 6 settlements between April 2023 – April 2025, median price $815,290, median rent after works $945 a week, median gross yield after works 5.06%, median works spend $83,900, median difference between purchase price and the November 2025 valuation $125,000. Split by strategy: 4 second-dwelling additions at a median 5.61% and 2 cosmetic-only at 4.69%.

Ferntree Gully: 2 settlements between June 2023 – August 2025, median price $1,135,305, median rent $1,225, median gross yield after works 5.63%, median works spend $0, median valuation difference $216,920. Both were cosmetic-only. Two settlements describe two houses; they do not describe a suburb, and we would not draw a yield conclusion from them.

Where the research profile disagrees with our settlements

The Boronia research profile carries $879,000 and 957 sqm against our settled medians of $815,290 and 1,004 sqm. The Ferntree Gully profile carries $1,200,000 and 641 sqm against settled $1,135,305 and 641 sqm. We publish both columns rather than the flattering one, because the gap between them is informative: a research profile describes the suburb's typical investor stock, while our median describes what a buyer's agent with a specific brief actually chose out of it.

The implied gross yields on those profiles — 5.22% for Boronia and 5.20% for Ferntree Gully — are recalculated from each profile's own rent and price rather than quoted, so they cannot contradict the numbers beside them.

Location and planning

Location, council and the second-dwelling pathway

Location and planning
BoroniaFerntree Gully
Postcode31553156
Distance from CBD30 km30 km
CouncilCity of KnoxCity of Knox
Rail accessBoronia station, Belgrave lineFerntree Gully and Upper Ferntree Gully stations, Belgrave line
Second-dwelling pathwayVictorian Amendment VC253 appliesVictorian Amendment VC253 applies
Schools

Schools: Boronia vs Ferntree Gully

Primary ranks are 2025 NAPLAN, secondary ranks are 2025 VCE. Our indexed school set covers Victorian schools only, so a NSW column is shown as blank rather than partial.

School comparison
BoroniaFerntree Gully
Schools in our indexed set49
Strongest primary (NAPLAN rank)St Joseph's Primary School · #212/1,285Mountain Gate Primary School · #150/1,285
Strongest secondary (VCE rank)Boronia K-12 College · #265/607Heritage College Knox · #18/607
What we cannot tell you

Limits of this comparison

Ferntree Gully rests on 2 settlements and Boronia on 6. Neither supports a confident suburb-level yield claim, and the Ferntree Gully column should be read as two data points rather than a market. Gross yields are gross: they exclude land tax, management, insurance, maintenance, vacancy and interest. We do not publish days-on-market, vendor-discount or auction-clearance series for any suburb — those come from licensed providers whose terms do not permit redistribution, and we would rather carry a visible gap than an unlicensed number.

Questions people actually ask

Boronia vs Ferntree Gully — frequently asked questions

Is Boronia or Ferntree Gully better for an investment property?

Boronia, for anyone planning to build. Our 6 Boronia settlements (April 2023 – April 2025) had a median price of $815,290 on 1,004 sqm of land, against $1,135,305 on 641 sqm for 2 settlements in Ferntree Gully — 363 sqm more land for $320,015 less. Ferntree Gully's advantage is the school catchment, which matters to an owner-occupier rather than a landlord.

Why is Ferntree Gully more expensive than Boronia?

Not for land — our Ferntree Gully median lot is 363 sqm smaller. The premium tracks the catchment and the established housing stock: Heritage College Knox at #18 of 607 and Mountain Gate Primary School at #150 of 1,285, against #265 and #212 in Boronia.

Can I build a granny flat in Boronia?

Our median Boronia lot is 1,004 sqm, well over the 300 m² threshold, and 4 of our 6 settlements there were second-dwelling additions with a median gross yield after works of 5.61% and a median build spend of $96,400. Amendment VC253 removes the planning permit for a self-contained dwelling of 60 m² or less in the Residential Growth, General Residential and Neighbourhood Residential zones; a building permit is always required and an overlay can reinstate the planning permit.

What rental yield do Boronia investment properties achieve?

Across our 6 Boronia settlements (April 2023 – April 2025) the median gross yield after works was 5.06%, splitting into 5.61% on 4 second-dwelling additions and 4.69% on 2 cosmetic-only purchases. Gross yield excludes land tax, management, insurance, maintenance, vacancy and interest.

How many properties has PremiumRea bought in Ferntree Gully?

2, settled June 2023 – August 2025, at a median price of $1,135,305 on 641 sqm, both cosmetic-only. That is a real but very thin record and we would not generalise a suburb yield from it.

Which suburb has better schools, Boronia or Ferntree Gully?

Ferntree Gully on 2025 results — 9 indexed schools against 4, with Heritage College Knox at #18 of 607 and Mountain Gate Primary School at #150 of 1,285. Boronia's strongest are Boronia K-12 College at #265 and St Joseph's Primary School at #212.

Are Boronia and Ferntree Gully in the same council?

Yes — both are in the City of Knox, which means the same local planning scheme provisions, the same council-level second-dwelling guidance and the same rates regime. That is part of why the land difference does so much of the work in this comparison.

Is the outer east of Melbourne good for granny flat investment?

It is open to the strategy: our Boronia median lot of 1,004 sqm is among the largest in our record. Across 144 granny-flat additions in Cranbourne, Cranbourne North, Hampton Park, Narre Warren (January 2023 – September 2025) the median gross yield after works ran 5.82% to 5.86%, and our 4 Boronia additions returned a median 5.61%. What decides it is the individual lot's zone, overlays and existing footprint.

How far are Boronia and Ferntree Gully from the Melbourne CBD?

Both about 30 km. Boronia has Boronia station, Belgrave line; Ferntree Gully has Ferntree Gully and Upper Ferntree Gully stations, Belgrave line. On travel time they are interchangeable, which is another reason the comparison should turn on the lot rather than the location.

What did PremiumRea spend on renovations in Boronia?

A median of $83,900 across 6 settlements (April 2023 – April 2025), and a median of $96,400 on the 4 that were second-dwelling additions. The median difference between purchase price and the November 2025 valuation was $125,000.

Should I buy the bigger block or the better school zone?

It depends on who occupies it, and the honest version of that answer has a rule attached. If you will hold it as a rental, the block wins — in our record the works a lot permitted moved the median gross yield by 0.51 to 1.03 percentage points inside a single suburb. If a family in your household will attend the school, the catchment is consumption, not investment, and should be priced as such.

Is Boronia a good suburb for a first investment property?

It has the two features that make a first purchase easiest to underwrite: a median lot of 1,004 sqm that keeps the second-dwelling option open, and a median entry of $815,290 across our 6 settlements (April 2023 – April 2025). What it does not have is depth of evidence — 6 settlements is a fraction of what we hold in the south-east corridor.

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