St. Kilda

Most nights of the week, the streets of this Victorian seaside suburb come alive with visitors, and its many restaurants, cafés, and bars buzz with energy. The holiday atmosphere continues on Sunday at open-air markets on the beach, while the tree-lined promenade and pier extending into Port Phillip Bay are perfect for strolling and people-watching. The quaintly named St. Kilda Sea Baths (now a modern swimming pool–spa complex) are housed in a turn-of-the-20th-century building. Although no one wanted to live there in the 1970s and '80s, St. Kilda is now a very smart address. Many visitors choose to stay here and hop on a tram to the city center.