I live in Cardigan Street in St Kilda East. As you go further away from the beach the less drug culture is around. Alma Road is a long road. We have a 2 year old daughter and are bringing her up in our 2 bedroom flat, and it's a perfect suburb for kids. Lots of child care centres, heaps of parks and the best thing, close enough to the city that it takes less than 20 minutes to get to work = more time with the kids
Where you are is safe and a good area for kids. Still essentially a family area, lots of amenities and kids welcomed in shops, cafes, bars etc. We moved in when my son was five and he loved the area, swimming, parks, schools and plenty of public transport.