Auburn’s Quiet Rise: Overlooked Hawthorn Suburb Poised for Rezoning Surge

Auburn, long overshadowed by its better-known neighbours in Hawthorn, is drawing sudden scrutiny as city council prepares to unveil a draft rezoning scheme that could pave the way for high-density development near Auburn train station.

The renewed focus comes as Hawthorn undergoes its most significant planning review in over a decade, with the council’s strategic framework update set for public release on 12 July. Real estate agencies in Glenferrie Road say activity in Auburn has picked up in the past two weeks, with buyers and development groups inquiring about unrenovated homes and vacant parcels within the precinct’s traditional low-rise streets.

The Next Investment Frontier?

Auburn’s potential transformation matters because rezoning could unlock opportunities for investors and first-home buyers alike at a time when other Hawthorn pockets have priced out many locals. Auburn Village, a scatter of heritage shopfronts on Auburn Road anchored by the Centonove wine bar and The Auburn Hotel, is already experiencing an uptick in foot traffic as house-hunters tour the area. Retailers at Liddiard Street have also reported inquiries about possible shop refurbishments, anticipating a wave of new residents if multi-level dwellings become permissible under new planning overlays.

Current Hawthorn zoning provisions restrict the majority of Auburn’s residential streets, including Fairmont Avenue and Burgess Street, to two-storey builds. The proposed changes would allow up to five storeys within 500 metres of Auburn station, in line with council’s draft strategic housing targets. The city’s 2026 Planning Update paper lists Auburn among two other localities targeting ‘densification with heritage protection’, and property research group Blockdata Analytics identified a 17% lift in off-market approaches for Auburn lots between March and June this year.

Numbers Stacking Up

Median house prices in Auburn sat at $1.54 million in June according to Hawthorn Property Insight’s monthly index, still $300,000 below the broader city median for detached dwellings. Meanwhile, one-bedroom apartments near Auburn Road fetched average rents of $495 per week, up 4% over twelve months, giving local investors a yield edge over the more expensive core of Hawthorn. The city’s Population Growth Projections 2026 report, published in March, forecasts that Auburn’s resident base could rise by 1,100 over the next decade if zoning changes permit vertical expansion, citing proximity to Swinburne University and retail hubs as key factors.

The rezoning itself is not a done deal. Council planning committee schedules public consultation from 15 to 28 July, including a town hall session at the Hawthorn Arts Centre. Local advocacy group Friends of Auburn Green has signalled it will seek heritage controls for properties along Victoria Road and Woodburn Avenue, raising concerns about the potential impact on historic terrace housing.

Prospective buyers, residents and investors are being urged to monitor the council’s planning portal from 12 July for the full draft documents. Real estate agencies suggest due diligence is vital: properties near the Auburn Hotel and railway are likely to see price lifts if the rezoning proceeds, but planners warn some streets could remain heritage protected regardless of broader changes.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.