By Malisa Howard, Principal Solicitor, Jaide Law
Melbourne may no longer be the fastest-growing capital city, but savvy buyers know that’s precisely where the opportunity lies. While cities like Brisbane and Perth have surged ahead in recent years, Melbourne’s current pricing plateau offers exceptional value – particularly for those who take a long-term view. For buyers with vision, Melbourne is a market rich with lifestyle appeal, infrastructure, culture, and upside potential. By exploring Melbourne property prices by suburb, buyers can uncover hidden value and make more informed decisions based on location, property type, and future growth potential.
One of the best ways to explore a market’s true potential is by understanding what its median price can actually buy. But be warned – medians only tell part of the story. In Melbourne, that headline figure of $947,611 for houses (and $617,395 for units) can mean very different things depending on location, property type, and condition.
In this article, I’ll unpack what Melbourne’s current medians look like in real bricks-and-mortar terms and why there’s more value beneath the surface than most realise.
While Melbourne’s median price growth has remained relatively flat over the past year – trailing cities like Brisbane and Perth – this stability presents a unique window for buyers to enter a world-class city market before momentum returns.
Cotality’s (formerly CoreLogic) July Home Value Index revealed that Melbourne’s median house value of $947,611 hasn’t changed for a year while unit medians have dropped 1.3 per cent in the same time to $617,395. In comparison, Brisbane’s median house and unit values of $1,010,566 and $718,196 are now the second highest in the country, after Sydney. The Sunshine State’s house values follow an annual 6.3 per cent increase while unit medians experienced an 10.9 per cent upward jump in the same period.
Meanwhile, dwelling values in Brisbane, Adelaide and Perth have notably thrived since 2015. Melbourne’s 14.3 per cent and 40.6 per cent dwelling value increase in the past five and 10 years respectively are certainly positive, but these figures’ pale in comparison to those of Brisbane et al. Of course, long-term investors know that momentum will likely swing back toward the Victorian capital at some stage.
Brisbane and Adelaide dwelling values have increased 75.1 per cent and 74.7 per cent since 2019 respectively, and 92.5 per cent and 94.4 per cent in the past decade. Meanwhile, the same times have seen values escalate by 81.1 per cent and 60.4 per cent in Perth. As such, Melbourne doesn’t currently hold the clear second-place market in Australia’s property hierarchy that it did in 2019… but it could in the future.
According to Ray White chief economist, Nerida Conisbee last week (June 30), this recent “housing reshuffle” is a dramatic change to our country’s established property market order. Analysis from data research group, Neoval found Melbourne is now the sixth – rather than the second – most expensive capital city in the country. The southern city’s average (but not median) property values dropped four places between May 2019 and May 2025.
The Gold Coast now holds Melbourne’s former, almost top-of-the-range spot, followed by the Sunshine Coast, the ACT and Brisbane with Sydney still holding the number one position for premier value. Ms Conisbee said that significant lifestyle-driven demand had resulted in explosive growth in Queensland's coastal markets, particularly the Gold Coast, where house prices now average $1.25 million – a 95.4 per cent increase since 2019.
Before examining exactly what bricks and mortar you can buy for Melbourne’s median, property buyers must understand that basing their purchase solely on median prices is a flawed strategy. While it’s a great idea to study median performances, home buying success depends on long-term property asset achievements, rather than the ups and downs of median price bands.
As you’ll shortly see, the same median price in the same capital city can give you multiple, and very different, properties in various locations. These properties’ ages and structures may also differ wildly, which in turn affects its investment growth potential. Don’t forget the impact of cash rates too which financial markets say are certain drop for the third time in July. We will likely see a further rate cut later in the year too, which will significantly increase property demand.
For this article, we’ve looked at Melbourne’s latest sales to identify examples of what the $947,611 house median and $617,395 unit and townhouse median will deliver buyers. While these properties are not necessarily ones that my Melbourne team would advise clients purchase, they do offer a real-time bricks and mortar illustration of Melbourne’s median.
Starting with houses, and an inner-city home at 251 Geelong Road, Kingsville on the CBD’s western edge sold for $950,000 last month. The 3-1-1, renovated property is on a 276 square metre site, 9.5 kilometres from Flinders Street Station in the heart of Melbourne’s CBD. While $950,000 is a high price for such a small house, the property’s value is based on its inner-ring location as well as its updated features.
251 Geelong Road, Kingsville (source: realestate.com.au)
Meanwhile, this middle-ring house at Avondale Heights is a great example of just how dissimilar properties with similar medians can be. Sold for $940,000 on July 1, the 3-1-5 property is set on 711 square metres and is 21 kilometres north-west of Flinders Street Station. It is highlighted as having “development potential” – a description which can sound positive but can be a challenge if the buyer isn’t a keen and experienced renovator. At the same time, part of the house has already been updated, and the bathroom is brand new.
241 Military Road, Avondale Heights (source: realestate.com.au)
In another great example of dissimilar median price homes, this outer-ring house 12 Carrington Drive, Pakenham, 60 kilometres south-east of the CBD, sold for $950,000 this month. Yet for this price, the buyers acquired a 4-2-2, modern property on 768 square metres with a back deck and a pool.
12 Carrington Drive, Pakenham (source: realestate.com.au)
Now, onto units and townhouses.
103/416 Lygon Street, Brunswick East is a 2-1-2 unit on this perpetually popular road, seven kilometres north of Flinders Street Station. It sold for $620,000 this month. Again, there’s no doubt this property is small but there’s also little doubt that its buyers would have bought it for its location, rather than its size. The Lygon Street position would also ensure the unit’s long-term appeal to renters and its strong capital growth potential.
103/416 Lygon Street, Brunswick East (source: realestate.com.au)
Located in the middle ring of Melbourne, this older unit at 9/68 Banksia Street, Heidelberg, is 16 kilometres north-east of Flinders Street Station, and sold for $620,000 on July 3. But while the unit has the 2-1-1 proportions of the Brunswick East property, it is spread across two storeys and has a front balcony, small patio and garden.
9/68 Banksia Street, Heidelberg (source: realestate.com.au)
Finally, this outer-ring unit at 11 Wicket Road, Clyde is 55 kilomtres from the heart of the CBD and sold for $608,000 on July 1. This 3-2-2, two-storey property was built in 2021 with its oodles of space and direct street access undoubtedly being among the major drawcards for the buyers.
676
11 Wicket Road, Clyde (source: realestate.com.au)
As you can see, there are plenty of properties with similar median prices in Melbourne – but real estate success is not based on a property’s median price band. Our Propertybuyer team have the skills, networks and experience to ensure you secure the ideal home for your needs, no matter what your budget is.
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