Suburb Overview
Reservoir is a well-established middle-ring suburb of Melbourne, Australia, with a population of approximately 51,096, making it a significant urban area. Located approximately 12 km from the Melbourne CBD, Reservoir is a middle ring area in Victoria. The median household income is $80,132 per year.
Location
Key Indicators
Postcode
3073
Postcode for Reservoir, from a community postcode dataset cross-checked against Australia Post. A postcode may cover multiple suburbs.
Australia Post Postcode Finder →
Population
51,096
Usual resident population at the most recent census.
Median weekly rent
$360/wk
Median weekly rent recorded at the 2021 Census — market rents have risen since, so treat this as a dated baseline, not a current figure.
Median household income
$80,132
Annual median household income (before tax) across all households.
Distance to CBD
12 km
Straight-line distance from the suburb centroid to the nearest capital city CBD. Actual driving distance will be longer.
Sale prices & yield
Median house price
$920,000
Median house sale price — as at 2025 (preliminary), Valuer-General Victoria (CC BY 4.0).
Median unit price
$647,000
Median unit sale price — as at 2025 (preliminary), Valuer-General Victoria (CC BY 4.0).
Housing
Median monthly mortgage
$1,986/mo
Monthly median mortgage repayment for households currently paying off a mortgage.
Home type
58% houses
Proportion of separate houses versus units, townhouses, and other home types. Useful for investors assessing rental demand mix.
Why People Like Living in Reservoir
- Middle-ring location about 12 km from Melbourne — balance of commute and affordability.
- Plenty of schooling options nearby — around 13 schools within reach.
- Good green-space access with around 20 parks and reserves nearby.
- Well-serviced by public transport and major roads.
- Established streets, local shops, and schools within the neighbourhood.
Who Reservoir Suits
Pros and Cons
Pros
- Rent sits within an affordable share of local incomes, supporting tenant demand.
- Access to several schools nearby (around 13).
- Local parks and reserves (around 20) add to liveability.
- Solid transport links into employment hubs.
Cons
- Traffic can build during peak hours, especially on arterial roads.
- Prices may rise further as demand continues.
Investment Insight
With 51,096 residents, Reservoir is one of Victoria's more populous suburbs — roughly 6.9× the state median of 7,416 — giving it a deep buyer and tenant pool that typically supports higher transaction volumes and shorter average days on market. Household income of $80,132/year is 16% below the Victoria median of $95,160, typically translating into lower entry prices and a tenant base more sensitive to rent increases. At the 2021 Census, rent of $360/week covered 79% of the $1,986/month median mortgage recorded at the same Census, leaving a gap of roughly $426/month at the time. Rents and repayments have both risen since — re-run the numbers with current figures before drawing conclusions. 12 km from Melbourne places Reservoir in the middle commuter belt, close enough for daily trips by car or rail but at a materially lower price point than inner suburbs. Only 58% of dwellings are separate houses (vs 78% state median), so this is a unit-heavy market where body-corporate decisions and strata supply meaningfully shape investor returns.
Investment Tip
This suburb suits long-term investors looking for a balance of rental yield and capital growth. Schools and transport underpin family demand. At the 2021 Census, local rents consumed roughly 23% of household income — a dated but useful sanity check on tenant affordability.
Reservoir vs Victoria Median
How Reservoir stacks up against the median of all Victoria suburbs in our dataset. Positive values mean Reservoir sits above the state median; negative means below.
| Metric | Reservoir | VIC median | Δ vs state |
|---|---|---|---|
| Population | 51,096 | 7,416 | +589% |
| Median household income | $80,132/yr | $95,160/yr | -16% |
| Median rent (weekly, 2021 Census) | $360 | $380 | -5% |
| Median mortgage (monthly, 2021 Census) | $1,986 | $1,950 | +2% |
| Distance to CBD | 12 km | 32 km | -62% |
| Separate houses | 58% | 78% | -20pp |
Investor Checklist
Pre-inspection briefing for Reservoir — every item is derived from public datasets, with full citations in our data sources page.
- Market depth: 51,096 residents — 689% of the VIC suburb median (7,416).
- Purchasing power: median household income $80,132/year (-16% vs Victoria suburb median of $95,160).
- Cash-flow coverage (2021 Census): $360/week rent (≈ $1,560/month) covered ~79% of the $1,986/month median mortgage at the 2021 Census — verify against current rents and rates.
- CBD access: 12 km straight-line from Melbourne (state suburb median 32 km).
- Dwelling mix: 58% separate houses — mixed market (vs 78% state median).
- Rate stress-test: budget ~$199/month extra for a 1-percentage-point RBA rate rise on top of the $1,986/month median repayment.
- Tenant rent burden: 23% of the median household income is spent on rent — comfortably affordable.
Investment Strategy
Moderate buy-and-hold potential: Reservoir's 51,096-person market and $80,132 median household income work for investors who are selective on street location and property quality rather than counting on a suburb-wide rerating.
Moderate rental coverage at the 2021 Census: rent of $360/week covered 79% of a $1,986/month mortgage, a $426/month gap bridged with equity, depreciation and tax benefits. Re-check with current rents and rates before committing.
Only 58% of dwellings are separate houses (vs 78% VIC median) — this is a unit and townhouse market, where cosmetic flips struggle against body-corporate restrictions, thinner after-reno uplift and competing new supply.
Risk Factors
- Interest-rate sensitivity: the $1,986/month median mortgage in Reservoir means a 1-percentage-point RBA rate rise could add roughly $199/month to repayments, reducing buyer borrowing capacity and cooling prices.
- Income vulnerability: household incomes in Reservoir are 16% below the Victoria median ($80,132 vs $95,160), which tends to compress rent growth and increases exposure to local unemployment shocks.
- Regulatory risk: changes to Australian tax settings (negative gearing, CGT discount, foreign-buyer surcharges, land-tax thresholds) could reshape after-tax returns in Reservoir regardless of local market conditions.
- Market cycle risk: property markets are cyclical, so stress-test your projections in Reservoir with a 10–15% price pullback scenario before committing capital — returns to date are not a guarantee of future performance.
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Start your first-home journey →2026 Outlook
Capital-growth expectations for Reservoir are modest for 2026 — incomes 16% below the VIC median of $95,160 suggest gains will lag headline metro markets. At the 2021 Census, rental coverage ran at ~79% of the typical mortgage ($1,560/month rent vs $1,986/month repayment), leaving a manageable top-up for most investors. Verify against current rents and rates. Overall investor sentiment for Reservoir is constructive heading into the second half of 2026, based on its income, rent and mortgage profile relative to the Victoria median.
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Frequently Asked Questions
Is Reservoir a good suburb for investment?
Whether Reservoir suits you depends on your strategy, but the fundamentals are concrete: a population of 51,096, a median household income of $80,132/year and median weekly rent of $360. Weigh those against your goal — cash flow, capital growth, or a value-add renovation — each of which we break down with suburb-specific ABS numbers elsewhere on this page.
What drives property demand in Reservoir?
The main demand drivers in Reservoir are proximity to Melbourne (12 km), a median household income of $80,132/year, a dwelling mix that is 58% separate houses. Together these shape both owner-occupier and tenant demand.
What is the population of Reservoir?
Reservoir has a usual resident population of approximately 51,096, compared with a Victoria suburb median of 7,416 — placing it in the upper half of the state's suburbs by size. Population is the clearest proxy for market depth: more residents mean more transactions and typically a shorter average days-on-market on resale.
How far is Reservoir from the Melbourne CBD?
Reservoir sits 12 km straight-line from the Melbourne CBD. This is comfortable commuter territory, with reasonable rail and road access to the city.
What is the median rent in Reservoir?
The most recent census recorded a median weekly rent of $360 in Reservoir, equating to approximately $18,720/year in gross rental income (state median $380/week). Market rents have typically drifted above the recorded figure — verify against current listings on realestate.com.au and Domain before making an offer.
What is the typical mortgage repayment in Reservoir?
The median monthly mortgage repayment in Reservoir is $1,986, or approximately $23,832/year (vs $1,950/month state median). Stress-test your own borrowing at rates 1–2 percentage points above today's to make sure you can still service the loan through an RBA tightening cycle.
Is Reservoir cash-flow positive for investors?
A median weekly rent of $360 works out to $1,560/month, covering 79% of the median mortgage repayment of $1,986/month. That leaves a $426/month shortfall (around $5,112/year before tax benefits), so a typical owner-occupier-priced property here is negatively geared. Actual cash flow depends on your deposit, loan terms, ownership costs and marginal tax rate — run the full numbers in our rental yield calculator.
What are the main risks of investing in Reservoir?
The main risks are interest-rate sensitivity on the $1,986 median mortgage, below-median household incomes ($80,132 vs $95,160 state median), the broader Victoria market cycle. Each of these is covered in the Risk Factors section above with suburb-specific numbers rather than generic warnings.
How we built this Reservoir profile
The population, postcode, median household income, and dwelling mix on this page are real figures from the ABS 2021 Census (income is the ABS median weekly household income annualised) and Australia Post. Distance to the CBD is calculated from the suburb's ABS centroid. The Census median rent and mortgage repayment are 2021 figures and are clearly labelled as such wherever they appear — they are five years old and have moved substantially since. We do not publish an investment score or school/park counts for this suburb. See our methodology and data sources for exactly what's measured and what's estimated.