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typical melbourne house prices

What is the median Melbourne house price?

November 25, 2019 7:00 am by Upside

If you’re considering buying property in Melbourne, you probably want to know what the property market looks like so that you can get the best deal in a top location. And, on the flip side, if you’re planning to sell, you’ll want to make sure you’re putting your home on the market at the right time.

We’ve created a quick guide to the average house prices in Melbourne to help you get your head wrapped around the current state of the Melbourne property market.

Average house prices in Melbourne

According to the latest Domain State of the Market report for the September 2019 quarter, the average house price in Melbourne is $855,428.

Melbourne’s inner-east commands the highest real estate prices in the city with an average price tag of $1,340,000. Melbourne’s western suburbs are home to the city’s most affordable houses, at $598,000 on average.

Average house prices in Melbourne by region

Region Median QoQ YoY
Outer East $760,000 6.3% 1.3%
Inner South $1,230,000 5.6% -0.8%
Inner East $1,340,000 5.5% -0.7%
West $598,000 3.1% 0.5%
Inner $1,205,000 2.6% 7.1%
North East $687,500 2.6% -1.9%
South East $635,000 1.6% -0.8%
Mornington Peninsula $685,000 1.5% 3.6%
North West $611,500 -1.1% -0.6%

Source: Domain House Price Report, September quarter 2019

Average unit prices in Melbourne

The Domain State of the Market report for the September 2019 quarter puts the average unit price in Melbourne at $520,940.

Melbourne’s inner-south region is the most expensive area to live for units, with a median price of $606,000. Like houses, units are also cheapest in Melbourne’s western suburbs, at $406,000 on average. Average unit prices in Melbourne by region

Average unit prices in Melbourne by region

Region Median QoQ YoY
Outer East $760,000 6.3% 1.3%
Inner South $1,230,000 5.6% -0.8%
Inner East $1,340,000 5.5% -0.7%
West $598,000 3.1% 0.5%
Inner $1,205,000 2.6% 7.1%
North East $687,500 2.6% -1.9%
South East $635,000 1.6% -0.8%
Mornington Peninsula $685,000 1.5% 3.6%
North West $611,500 -1.1% -0.6%

Source: Domain House Price Report, September quarter 2019

Average unit prices in Melbourne

The Domain State of the Market report for the September 2019 quarter puts the average unit price in Melbourne at $520,940.

Melbourne’s inner-south region is the most expensive area to live for units, with a median price of $606,000. Like houses, units are also cheapest in Melbourne’s western suburbs, at $406,000 on average.

Average unit prices in Melbourne by region

Region Median QoQ YoY
North East $524,999 14.1% 18.0%
Outer East $565,000 7.6% 7.1%
South East $460,000 5.8% 7.7%
Mornington Peninsula $460,000 3.9% 2.2%
North West $481,750 2.5% 7.1%
Inner $540,000 1.8% 1.9%
Inner South $606,000 0.7% 4.5%
West $406,000 -1% 0.3%
Inner East $604,250 -2% 3.6%

Source: Domain House Price Report, September quarter 2019

RELATED: 7 Hottest suburbs for capital growth in Melbourne

How do Melbourne property prices compare to the rest of Australia?

While some capital cities in Australia have seen recent dips in property prices, Melbourne and Sydney – the nation’s two biggest real estate markets – recorded growth of over 4% in the September 2019 quarter. Looking at affordability, Melbourne is the second most expensive capital city, but properties are still considerably more affordable than Sydney, with houses being around 20% cheaper on average and units being around 30% cheaper on average.

RELATED: What do I need to know about the Melbourne property market? Median house prices by city

Median house prices by city

City Median QoQ YoY
Sydney $1,079,491 4.8% -1.6%
Melbourne $855,428 4.1% 0%
Brisbane $562,847 -1% -1.8%
Adelaide $538,550 -0.6% 0.7%
Canberra $738,864 -0.7% 0.6%
Perth $527,107 -1% -2.4%
Hobart $482,960 1.3% 2.6%
Darwin $521,651 1% -4.4%
National $773,635 2.7% -1%

Source: Domain House Price Report, September quarter 2019

Median unit prices by city

City Median QoQ YoY
Sydney $694,840 2.6% -5%
Melbourne $520,940 3.7% 6.3%
Brisbane $375,179 -3.4% -5.6%
Adelaide $302,756 -5.2% 0.7%
Canberra $432,252 -4.4% -3.4%
Perth $344,672 2.8% -1.9%
Hobart $395,715 1.7% 10.4%
Darwin $294,951 -3.3% -7.1%
National $539,256 1.8% -2%

Source: Domain House Price Report, September quarter 2019

What factors impact average Melbourne house prices?

Typical house prices throughout the Greater Melbourne area can vary greatly depending on a number of factors, including:

Location – As they say, it’s all about location, location, location. Of course, any home that’s close to the Melbourne CBD and other hubs is going to attract a high price based on an extremely favourable location.

Economic growth – As the local economy grows and wages increase, so too does the demand for property and overall prices.

Infrastructure – Major developments, urbanisation, and trends toward gentrification contribute to a boost in property values.

Accessibility – Proximity to public transport and convenient roadways can have a significant impact on the value of a home.

Vacancy rates – Lower vacancy rates mean less money lost by landlords losing rental income and a higher resale value.

Population growth – An increase in population numbers can result in a housing shortage in some areas, causing greater demand for properties and increasing prices.

Capital gains tax – CGT can impact redistribution of capital and economic output, leading to dips in affordability.

Overseas investment – International interest in Melbourne properties drives up prices and impacts local buying capacity.

RELATED: 7 Hottest suburbs for capital growth in Melbourne

If you’re thinking about buying property in Melbourne, have a look at our latest property listings throughout the city.

Or, if you’re looking to sell, you can also get a free online property estimate, which includes your property’s estimated value, sales history, and comparable properties in your area.

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