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typical melbourne house prices

What are typical Melbourne house prices?

February 16, 2018 7:00 am by Upside

If you’re considering buying a house 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 thinking of selling, 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 property market.

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. Average house prices in Melbourne While Melbourne house prices are still on the rise, the latest data from the ABS shows that growth has started to slow – an early sign the property market could be cooling. For standalone houses, growth was mostly driven by the upper ($1,375,000 to $2,000,000) and lower segments of the market ($520,000 to $695,000).

According to the latest Domain State of the Market report, the average house price in Melbourne stands at $880,902.

RELATED: 7 Hottest suburbs for capital growth in Melbourne

Here’s a breakdown of average house prices around the city.

Regions Median Quarterly Growth Yearly Growth
Inner East $1,600,000 0.9% 10.1%
Inner South $1,350,000 1.1% 12.5%
Inner Urban $1,512,520 -2.4% 10.8%
North $620,000 3.1% 18.4%
North East $727,000 1.0% 16.1%
Outer East $888,000 3.0% 18.4%
South East $600,100 2.6% 17.7%
West $600,000 3.4% 15.4%

Source: Domain Group

Average unit prices in Melbourne

In line with houses, recent ABS data shows that for units and attached dwellings, downturns in price were seen in the middle to upper market segments ($550,000 to $800,000)1.

The latest Domain State of the Market report puts the average apartment price in Melbourne at $506,3342.

Here’s a guide to typical unit prices by region.

Regions Median Quarterly Growth Yearly Growth
Inner East $645,000 1.3% 7.6%
Inner South $604,000 0.8% 7.9%
Inner Urban $551,500 -2.4% 0.3%
North $452,500 3.4% 13.1%
North East $508,000 10.4% 21.0%
Outer East $594,000 8.0% 16.5%
South East $425,000 11.8% 26.1%
West $421,700 2.9% 11.0%

Source: Domain Group

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

While many of the capital cities in Australia are seeing dips in property prices – including Sydney, the country’s biggest property market – the good news for owners is that Melbourne property prices are still on the up.

While growth has slowed slightly, Melbourne house prices increased by 13.9% last year compared with the previous year, making it the second strongest performing market behind Hobart. Similarly, Melbourne unit prices grew by 11.4% year on year.

Looking at affordability, Melbourne is the second priciest capital city, but properties are still considerably more affordable than Sydney, with houses being around 25% cheaper on average and units being around 30% cheaper on average.

RELATED: What do I need to know about the Melbourne property market?

Quarterly median house prices by city

HOUSE SEP 2017 JUN 2017 SEP 2016 QOQ% YOY%
Sydney $1,167,516 $1,190,677 $1,079,309 -1.9% 8.2%
Melbourne $880,902 $869,598 $773,399 1.3% 13.9%
Brisbane $551,840 $552,874 $531,767 -0.2% 3.8%
Adelaide $519,517 $520,846 $498,971 -0.3% 4.1%
Perth $554,095 $561,391 $567,314 -1.3% -2.3%
Canberra $723,980 $693,962 $655,468 4.3% 10.5%
Hobart $409,592 $392,170 $356,916 4.4% 14.8%
Darwin $593,329 $615,670 $610,510 -3.6% -2.8%
National $819,455 $823,381 $758,367 -0.5% 10.8%

Quarterly median unit prices by city

UNIT SEP 2017 JUN 2017 SEP 2016 QOQ% YOY%
Sydney $732,321 $738,227 $700,656 -0.8% 4.5%
Melbourne $506,334 $489,472 $454,644 3.4% 11.4%
Brisbane $376,685 $390,407 $402,712 -3.5% -6.5%
Adelaide $313,074 $308,223 $305,156 1.6% 2.6%
Perth $351,875 $377,132 $381,065 -6.7% -7.7%
Canberra $427,391 $419,451 $429,751 1.9% -0.5%
Hobart $323,174 $304,077 $257,214 6.3% 25.6%
Darwin $330,354 $354,584 $475,199 -6.8% -30.5%
National $570,148 $570,277 $547,263 0.0% 4.2%

Source: Domain Group

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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