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Value Seekers Fuel Melbourne's Property Price Resurgence

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Melbourne's property market is experiencing a notable rebound in house prices, driven primarily by value-conscious buyers looking for more affordable options.

According to CoreLogic's latest house price report, Melbourne has emerged as the most affordable major capital city in Australia, with a median home price of $772,561 as of February 28, 2025.

This relative affordability follows a modest 8.2% increase in property values over the past five years, a stark contrast to the nationwide rise of 38.9%. Consequently, Melbourne’s house prices are more accessible when compared to other major capitals, marking the cheapest relative valuation since 2006, as per data mostly sourced from Domain's quarterly house price statistics.

Melbourne’s housing market attractiveness has intensified interest from interstate buyers, particularly those from Sydney seeking economical housing opportunities. Domain reports a significant migration of Sydneysiders relocating to Melbourne, drawn by the cost advantage. Currently, the median house price in Melbourne stands at $1,039,460 compared to Sydney's $1,645,444, with unit prices also notably lower at $577,405 versus $812,863 in Sydney.

Jacob Caine, President of the Real Estate Institute of Victoria, notes a growing trend of Sydney residents moving south, not just for economic reasons but also for Melbourne’s appealing amenities and lifestyle.

Emily Wallace, a buyers’ agent and founder of Wallace Advocates, emphasizes that Melbourne's affordability allows for purchasing quality properties within a convenient distance from the city center. She anticipates this trend will continue as more buyers recognize the potential for purchasing well-valued homes.

Reflecting this positive sentiment, CoreLogic's daily dwelling values index indicates that Melbourne has seen a strong resurgence in property prices. Over the past 28 days, dwelling values have increased by 0.6%, marking the highest growth rate since September 2023.

As affordability continues to draw attention, Melbourne's property market is increasingly becoming a magnet for value hunters eager to capitalise on its appealing economic and lifestyle propositions.

Published:Tuesday, 25th Mar 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

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NSW Government Calls for Caravan Suppliers to Aid Disaster Recovery Efforts

01 Mar 2026: Paige Estritori

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Loan-to-Value Ratio (LTV):
A ratio that compares the value of the loan to the market value of the property securing the loan.

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