Port Melbourne is the nearest bayside suburb to the central Melbourne city area. Historically, it is a working class suburb having grown from the first permanent settlement and the docks that were built shortly thereafter. The suburb's small Victorian workers cottages are now attracting big dollars from people wanting to live in this area.

Today, Port Melbourne is one of the most sought-after parts of Melbourne in which to live, both because of its closeness to the city and also because of its sheltered bay beaches. It is also situated in a "beach belt" that includes Albert Park, Middle park and St Kilda, some of Melbourne's most fashionable bayside suburbs. Like most inner bayside suburbs, the area is big on cafes and restaurants. Melbourne's main passenger shipping departure terminal, Station Pier, is Port Melbourne's most significant landmark and it is now enjoying a new lease of life as the hub of a new lifestyle precinct that boasts high-rise apartment blocks and up market restaurants. Close to Station Pier is Beacon Cove, a residential development targeting young professionals which features architect-designed homes and boulevards lined with palm trees.