6 of the best emerging neighbourhoods in Australia

hero media
Break out of your usual routine and see our neighbourhoods anew everywhere from industrial backstreets to foodie precincts.

Journey with our writers as they take you into Australia’s top 6 emerging neighbourhoods from our 100 Emerging Destinations and Experiences series.

1. A luxe edition to Sydney’s Sandstone Precinct

Travelling with: Megan Arkinstall

The doors have swung open to a new era for one of Sydney’s grand heritage-listed buildings. Part of the new ‘Sandstone Precinct’ just steps from Circular Quay, the Department of Education building has been reimagined as Capella Sydney after a painstaking seven-year project. The sensitive restoration honours the original 20th-century design by government architect George McRae, whose legacy also includes Town Hall and the Queen Victoria Building.

an elegant lobby interior at Capella Sydney Hotel
The lobby makes a grand entrance at Capella Sydney. (Image: Timothy Kaye)

If he were alive, the Scotsman would be well placed today swilling whisky in the hotel’s glamourous bar that bears his name. While Capella’s interiors are contemporary and eclectic, McRae’s vision of a central garden courtyard is realised in the light-filled glass-ceilinged lobby. It features a seven-metre green wall, pair of weeping fig trees, and a mesmerising kinetic floral light installation that opens and closes under streams of sunlight.

the exterior of Capella Sydney
The hotel is housed in the city’s original Department of Education building. (Image: Timothy Kaye)

Australian art adorns the walls, including those by First Nations artists Otis Carey and Judy Watson. Interpreting Sydney’s history with ancestral elements of Sydney’s Eora people, Watson’s work is framed by the original bronze directory boards of the Department of Agriculture (who occupied the southern end of the building before the educators moved in).

a bathroom with curtains opening up to city views at Capella Sydney Liberty Suite
Soak up city views from your Liberty Suite. (Image: Timothy Kaye)

Capella oozes luxury with its high-end design and palatial guest rooms, styled with premium furniture and high-tech amenities. Its refined restaurant Brasserie 1930 is an Australian take on a classic French Brasserie experience, created by renowned Bentley Group. And service is unparallel and personalised to detail.

the indoor pool area at Capella Sydney
Dip in Capella Sydney Wellness Pool. (Image: Timothy Kaye)

Capella’s culturalists, who walk the line between concierge and all-knowing friend, are tasked to curating guest experiences. Each evening they host cocktail hour, sharing the intriguing story of late Sydney street poet Arthur Stace over an aperitif.

the stunning lounge area of Capella Sydney Aperture
Dine beneath a canopy of weeping figs in Capella’s stunning lounge area, Aperture. (Image: Timothy Kaye)

Creating a strong sense of place through both tangible and experiential in line with luxury is what the hotel does so well, setting a new benchmark for luxury accommodation in Sydney.

dining interior of Capella Sydney McRae Bar
Chill out at Capella Sydney’s McRae Bar. (Image: Timothy Kaye)

2. Go beyond the bluestone in Melbourne

Travelling with: Jo Stewart

Some visitors to Melbourne might have hopped on a No. 19 tram from Flinders Street Station to Brunswick to explore Sydney Road – the longest shopping strip in the southern hemisphere. But fewer would have ventured further along the busy arterial road into Coburg. Now, the Pentridge Precinct entices visitors to stay on the tram for a few extra stops.

the old structure of Pentridge penitentiary
The former Pentridge penitentiary makes the case for a prison break. (Image: Brent Lukey)

For more than a century, no one in their right mind would want to go beyond the cold, imposing bluestone walls of Pentridge Prison. But since closing in 1997, the historic penitentiary has been transformed into a lively area that people visit for enjoyment, not internment.

a look inside the premier king bedroom at Adina Apartment Hotel in Pentridge, Melbourne
Hole up at the Adina Apartment Hotel Pentridge.

In addition to the cinema, gallery, supermarket, art studios and beer hall, there’s now accommodation in the form of the 106-room Adina Apartment Hotel Pentridge and The Interlude, a boutique 19-room retreat.

colourful living room interior at The Interlude
Settle in within the confines of The Interlude.

Olivine Wine Bar and North & COMMON restaurant ensure guests are catered to with good food and wine.

dim lighting at Olivine wine bar
Rock on at the Olivine.

Operated by the National Trust, Pentridge Prison Tours run day and night. Three tours share different stories from the infamous penitentiary that’s housed a who’s who of crims, including bushrangers such as Ned Kelly and Harry Power, gangsters such as Squizzy Taylor and larger-than-life local Mark ‘Chopper’ Read. If you can handle dark themes, the adults-only H Division Unlocked tour reveals the grim stories behind the brutal wing dubbed ‘Hell Division’.

In comparison to its hellish history, the Pentridge of today is pure heaven.

an underground prison at Pentridge
Unlock the secrets of the jail on a guided tour. (Image: Brent Lukey)

3. Seeing Noosaville anew

Travelling with: Christine Aldred

Industrial areas on the outskirts of towns are having a heyday and the spacious backstreets of Noosaville are no exception. Queensland’s Sunshine Coast has been dubbed the craft beer capital of Australia, so you’ll naturally find three breweries in Noosaville (one with a distillery attached).

a hand pouring coffee into a cup
Clandestino Coffee makes a mean brew.

Healthy eaters will relish the organic market, a foodie enclave featuring fruit and veg, a butcher, bakers and a local coffee roaster. Pâtisserie legend Adriano Zumbo has joined the scene with a pop-up to please sweet tooths while Blue Plum dishes out Japanese fare and gyozas. Shoppers are spoilt for choice with a mix of retail outlets boasting homewares, fashion, locally made pottery, galleries and vintage wares. You can even get yourself a made-to-measure wetsuit from Zee Wetsuits for hitting the surf.

a hand holding a ceramic pot at Pottery For The Planet
Purchase handmade ceramics at Pottery For The Planet.

4. Experience the artisanal on the Mornington Peninsula

Travelling with: Taylah Darnell

Dromana Habitat captures the best of Victoria’s abundant Mornington Peninsula region and shares it with the world from the backstreets of an industrial estate. Those attending a workshop with one of 14 traders who call this precinct home will be welcomed by the sound of tinkering from Everwear Denim, crafting up a pair of new jeans. There’s also the unmistakable earthy aroma of hops from Australia’s first gluten-free brewery, TWØBAYS Brewing Co.

The makers at Dromana are not themselves new – in fact, many have called the precinct home for years. But their decision to connect and collaborate has resulted in a union that has catapulted the idiosyncratic artisanal collective into the spotlight. Whether it be a Sorrento Moon Cuvée Spritz masterclass with Rahona Valley Wines or a conversation with artisan cheesemaker Shaun Landman of BoatShed Cheese , you’ll leave Dromana feeling sanguine and sated.

a cheese guy at Boatshed Cheese
Meet the artisan cheesemaker behind Boatshed Cheese. (Image: Chris Mcconville)

5. Adelaide’s emerging Inner West

Travelling with: Alexis Buxton-Collins

The fragrant Afghan soul food at Parwana has long drawn Adelaideans to Torrensville and it’s still full every night of the week, even after doubling the floor space. But a spate of recent openings in the neighbourhood has provided plenty of other reasons to head west. Watch the in-house roaster in action while you get your caffeine fix at ultra-hip Elementary Coffee, then wander down to Lenny’s Records where the genial owner specialises in left-of-centre rock, folk and psychedelic music.

a soul food at Parwana Afghan Kitchen
Savour flavourful goodness at Parwana Afghan Kitchen. (Image: Josie Withers)

Head further west to Brookie P (aka Brooklyn Park), where the latest ventures from female-fronted hospitality group Sonic Yoni are about to open in the former council chambers; Yellow Matter is an inclusive brewery prioritising accessibility and So Long, Marianne is a menu-less wine bar with degustations that change daily to minimise waste.

the inside venue of Parwana Afghan Kitchen
A mix of blues occupies the interior of Parwana Afghan Kitchen. (Image: Josie Withers)

6. The tail-end of the Tiger Lane precincts

Travelling with: Carla Grossetti

Executive chef Shaun Presland (ex-Saké) has adopted and adapted food and flavours from hawker centres around Asia to inform the culinary direction of the new Tiger Lane dining precinct at the Canberra Centre.

a Japanese feast at INARI
Satisfy your palate with a Japanese feast. (Image: Harry Chalker)

Expect the food and beverage options at the 12 eateries to nod to the neon-lit laneways in downtown Tokyo, the bustling riverside markets along the Mekong River and the diversity of the regional dishes of China for the final phased opening of the precinct mid-May.

bright dining interior at INARI
Snag a spot for a wine night. (Image: Ben Calvert)

Restaurants Taki and Inari opened in 2022 and trace Presland’s culinary journey back to the time the sushi master lived and worked in the Yamagata Prefecture in Japan.

waiters serving guests at INARI
Dine at INARI. (Image: Ben Calvert)
Keep reading our 100 Emerging Destinations and Experiences series for more.
hero media

The top 12 hottest places to stay in regional Victoria right now

We round up the luxe, the lovely and the latest places to stay in regional Victoria.

1. Hotel Ernest, Bendigo

Hotel Ernest, Bendigo
The elegantly styled Hotel Ernest oozes heritage charm.

Settle into this artful lodging in the city centre for a boutique stay with heritage roots dating back to 1864. Each of the 10 suites in this former bank is elegantly styled and furnished with covetable works by Australian artists. Ernest is also home to the much-lauded Euro-style Restaurant Terrae, so be sure to book into the two-level diner during your visit.

2. Norsu Cabin, Macedon

a look inside Norsu Cabin, Macedon
Settle into this Scandi-inspired abode. (Image: Nick Skinner)

Country cabin dreams come to life under the sweet timber A-frame of Norsu . Sleeping eight guests, this Scandi-inspired abode is so meticulously styled it’s received knowing nods from The Design Files and is everything a modern log cabin should be, including cosy fireplace, fire pit, modern appliances and French linens. Perfect for logging out of daily life for a moment.

3. Islay House, Woodend

the bedroom at Islay House, Woodend 
Bed down at the gorgeously restored heritage Islay House. (Image: Tiffany Warner)

Lean all the way into a country luxe state-of-mind with a stay at the gorgeously restored heritage Islay House . This bed and breakfast sleeps up to nine guests and is just a short walk from town, but you’ll want to spend most of your time curled up fireside in the elegantly styled rooms as you admire the collection of antiques.

4. Nerissa Rye, Mornington Peninsula

Nerissa Rye, Mornington Peninsula
Indulge in barefoot luxe at Nerissa Rye. (Image: Eve Wilson)

This Rye beach pad is just a 10-minute walk from 16th Beach, and while a morning walk is lovely, returning to the barefoot luxe vibes of this four-bedroom escape is just as enlivening. Bright, open and welcoming, this is the place to settle in for endless cups of tea and a good book between beach jaunts.

5. Hotel Vera, Ballarat

a close-up of the bed at Hotel Vera, Ballarat
Modern meets bygone elegance.

This Ballarat beauty set in a 1900s mansion is all bygone elegance edged with modern style. Just seven boutique suites, each with its own distinct personality, makes it a singularly luxe stay. Sister to Bendigo’s Hotel Ernest, Vera is similarly bequeathed with a stand-out fine diner, Babae, which plates up the best of the region’s produce.

6. Hotel Sorrento, Port Philip Bay

Hotel Sorrento at Port Philip Bay
The Amalfi-style beachside Hotel Sorrento at Port Philip Bay.

The historic and iconic clifftop Hotel Sorrento at Port Philip Bay is mid-refurb and will reopen 1 December 2025, just in time for Amalfi-style beachside stays.

7. The Idle Lake House, Lakes Entrance

the Idle Lake House, Lakes Entrance
Soak up lakeside serenity. (Image: Kate Enno Photography)

Enjoy a ripple of serenity when you step aboard this water-top abode on the Gippsland Lakes. Once a Chinese restaurant, this spacious and stylish two-bedroom stay offers unbroken gazing of the shimmering surface in a beautifully private bay. Lounge on the deck and enjoy the onboard bathhouse; come evening, sit by the sleek suspended fireplace.

8. The Monty, Anglesea

the bedroom at The Monty, Anglesea
Bed down at the vintage motel, The Monty.

Palm Springs makes an entrance on the Great Ocean Road with the opening of The Monty in October 2025. Its vintage motel meets modern muse at this playful boutique stay complete with pool and a vibrant Mexican cantina. You’re just a stroll from the beach here, which tells us it’s ripe for summer vacays this season.

9. Trentham Waters Resort, Mildura

vibrant bedroom wall and pillows at Trentham Waters Resort, Mildura
The bright and retro-style bedroom at Trentham Waters Resort.

Another new property lands in regional Victoria in time for an endless summer with Trentham Waters Resort expected to open by February 2026. Breezy, subtly retro and brightened by the big Mallee sky, this river’s-edge escape is perfect for settling in for a spell with one-, two- and three-bedroom villas. There’s a lagoon-style pool, riverside hot tubs and onsite dining for all your relaxation requirements.

10. Crowne Plaza, Geelong

the Trattoria Bar in Crowne Plaza, Geelong
Sink a cold one at the Trattoria Bar.

Geelong is getting its own Crowne Plaza in 2026. Its arrival on the waterfront will make it the city’s largest (and newest) hotel with 200 contemporary rooms and suites, a Skybar, all-day dining, indoor pool and gym, and event spaces. Keep it on your radar.

11. Re’em, Yarra Valley

a private tub with lush views at Re’em, Yarra Valley
Sip and soak in tranquillity.

With verdant Yarra Valley views that take in the linear beauty of tended grapevines, the 16 suites and rooms at Re’em are set amid the Helen & Joey Estate and invite sipping and sitting in tranquillity. The onsite restaurant deftly balances Chinese and Australian flavours and if you’re staying over the weekend, be tempted out of your stylish room for yum cha that features delicate handmade dumplings and vineyard vistas.

12. Arapiles Clubhouse and Crash Pad, Grampians

the yard front door of Arapiles Clubhouse and Crash Pad, Grampians
Spend an overnight stay in the Natimuk stone house. (Image: Bianca Jackson)

These 1880-era mountain-adjacent digs have been tenderly restored to provide rock climbers and Grampians country wanderers a chic place to rest. You’ll find four bedrooms in the Natimuk stone house, as well as a heated pool out the back and plenty of luxe embellishments. There’s also a two-person ‘Crash Pad’ in the confines of the Clubhouse with its own separate entrance.

the lounge at Arapiles Clubhouse and Crash Pad, Grampians
The Crash Pad offers a resting place for rock climbers and Grampians country wanderers. (Image: Bianca Jackson)