Where to Stay in Melbourne: 7 Areas
Melbourne’s neighborhoods each suit a different kind of trip, and where you base yourself changes how much you rely on trams versus walking. Here are the seven worth choosing between.
CBD
Inside the Free Tram Zone, so short hops cost nothing, and everything from the laneways to Queen Victoria Market is walkable. This is the easiest base for a first visit. The historic Hotel Windsor and QT Melbourne, on Russell Street, are both well-established options here.
Southbank
Across the Yarra from the CBD, close to the arts precinct and Crown, with river views as the main draw and Eureka Skydeck a short walk away.
Docklands
A newer, quieter waterfront precinct next to Southbank, built around Marvel Stadium, and inside the Free Tram Zone the same as the CBD, so it costs nothing to hop into the center.
St Kilda
Melbourne’s beachside suburb, with a more relaxed pace, Luna Park, Acland Street’s cake shops and the dusk penguins on the doorstep, at the cost of a slightly longer tram ride into the CBD.
Fitzroy and Collingwood
The hip, local option, built around Brunswick Street’s street art, vintage shops and coffee rather than major sights, and a short tram ride from the center. It also sits closest to the quieter Merri Creek trail if a morning walk matters more to you than nightlife.
South Yarra and Prahran
Chapel Street’s boutique shopping and dining strip, a short tram or train ride from the CBD and close to NGV International.
Carlton
Lygon Street’s “Little Italy,” within walking distance of the CBD and close to the Royal Exhibition Building and Carlton Gardens, Australia’s first UNESCO World Heritage listing, inscribed in 2004, plus Melbourne Museum right on the same grounds.
Wherever you land, get a Myki card on arrival. The Free Tram Zone covers the CBD and Docklands, but trams and buses everywhere else are Myki-only, and Metro trains only started taking contactless bank cards in June 2026. Getting from Melbourne Airport to any of these areas means the SkyBus (about AUD $25.90 one-way to Southern Cross Station) or a taxi, since there’s still no train link, with that gap not expected to close until roughly 2033. Check current nightly rates before booking, since AUD prices move around events like the AFL Grand Final and the Australian Open. For the day-by-day plan that ties these areas together, see our places overview or the full Melbourne guide .