Melbourne property values
The value capital: a sub-$800k dwelling median, the strongest auction market in the country - and the heaviest investor tax settings. The full sheet.
Sheet MEL.01 · Updated August 2026 · Sources: Cotality, Domain, PropTrack, RBA - full list on the Sydney sheet
Other locations: Sydney · Brisbane · Perth
Melbourne never fully reclaimed its March 2022 peak - values were 4% below it before July's -1.2%. Yet its auction floor is the strongest in the country, with buyers returning wherever vendors reprice. (Cotality, Aug 2026)
A decade of Melbourne medians
A 2017 peak, the 2018-19 squeeze, a COVID record - and then four years of sideways. Melbourne houses are trading where they did in late 2021.
Median price, houses vs units - 2016 to June 2026
Cheap for a reason, cheap for a buyer
Melbourne enters this correction with the smallest buffer of any capital - five-year growth of just +1.2% - because Victoria's tax settings have had investors selling for two years.
The flip side: it is the only big east-coast capital with a sub-$1m Domain house median in sight and a sub-$800k dwelling median today, and 64% auction clearance says first home buyers on the 5% deposit scheme are meeting the market. Stock is plentiful; conviction is returning at the right price.
| Correction status | -1.2% in July, -3.4% for the quarter; still ~4-5% below the Mar 2022 peak (Cotality) |
|---|---|
| Annual change | -2.8% dwellings · houses -3.4% · units -1.5% (Cotality, Jul 2026) |
| Domain house median | $1,041,205 - -3.1% qtr, after a 4-year-high $1.11m in Dec 2025 (Jun qtr 2026) |
| Auctions | 64.2% clearance on 627 auctions - the strongest capital, first time above 60% since May (My Housing Market / Cotality, Aug 2026) |
| Days on market | 36 days - six days longer than the capital-city average (Cotality, Jun 2026) |
| Listings | Total listings +17.4% on a year ago; discounting ~-3.5% (Cotality, Jun 2026) |
| Rents | House and unit rents both at record $600/wk - growth stalling at affordability limits (Domain, Jun qtr 2026) |
| Yield / vacancy | Dwellings 3.9% - best of the big three · vacancy 1.2%, second-lowest June on record (Cotality / Domain) |
The national rate path
Every capital answers to the same cash rate: 2025's three cuts fuelled the boom's last leg, 2026's three hikes ended it. Held at 4.35% on 11 August; the big banks do not expect the first cut until around mid-2027.
RBA cash rate - May 2022 to August 2026
Victoria taxes investors hardest
Land tax surcharges (thresholds down to $50,000) plus the expanded Vacant Residential Land Tax from 2026 have over-leveraged landlords exiting - a two-year investor sell-off that keeps stock high.
The federal tax change stacked on top
Ending negative gearing on established homes hit investor-heavy Melbourne hardest, alongside 75 basis points of 2026 rate hikes.
The affordability magnet is real
Melbourne is the only major east-coast capital under $800k on the dwelling median - and the expanded 5% deposit guarantee is converting renters into bidders at its auctions.
Four years of sideways = small buffer
Five-year growth of +1.2% is the worst of any capital; the market never rebuilt the froth this correction is burning off elsewhere.
Population and a 1.2% vacancy floor
Strong overseas migration and near-record-low June vacancy underpin demand - the reason rents sit at records even as prices drift.
Published 12-month Melbourne forecasts
About $126,000,000 - "Coonac", Toorak
Australia's most expensive house sale - the Little/Hansen estate to healthcare billionaire Dennis Bastas, reported between $115m and $150m, settled 2026. Melbourne's first nine-figure deal.
$51,500,000 - Besen family mansion, Toorak
A landmark off-market Toorak deal finalised in 2026 - the trophy tier trades through the downturn here too.
Selling in Sydney?
Agent comparison on agent.casa covers Sydney today, with more cities to follow. Compare Sydney agents on real numbers, then request free appraisals.