Investment property · Melbourne
Investment Property Melbourne: 2026 Market Guide
Prices, rents, yields and 10-year growth across Greater Melbourne's 31 council areas, what is happening in the 2026 downturn, what it costs to buy and hold, and whether Melbourne fits an investor's numbers.
How we assess Melbourne for investors
- Melbourne tested against your brief, like every market
- Suburbs screened on supply, demand and rents
- Every property checked against 250+ data points
- Negotiation, due diligence and settlement handled
- neighbourhoods screened
- 15,000+
- data points per property
- 250+
- years in the industry
- 11+
By Mossy Taheri, licensed buyer’s agent · Updated · Data to 30 September 2026
Key takeaways
- Melbourne's median house value, $915,119, is now below Brisbane's, Perth's, Adelaide's and Canberra's, after house values fell 7.3% over the year to September 2026.
- Over the 10 years to September 2026, typical house values in Greater Melbourne grew 4.8% a year and unit values 1.3% a year (HtAG).
- Typical rents are about $622 a week for a house and $622 for a unit, after growing about 6.4% a year for houses over five years. Gross yields are 3.5% for houses and 5.2% for units (Cotality).
- Rental vacancy was 1.9% in September 2026 (SQM Research).
Melbourne property market at a glance
Melbourne is the country's second-largest market, but after years of weak growth it is now one of the cheaper capitals for houses. Higher state taxes on investors and heavy apartment supply have held values back, while rents have risen steadily. For investors, that means a lower entry price than most capitals, but holding costs that need to be counted carefully.
- Median house value · Cotality, Sep 2026
- $915,119
- Median unit value · Cotality, Sep 2026
- $624,740
- House values, past 12 months · Cotality, Sep 2026
- −7.3%
- Unit values, past 12 months · Cotality, Sep 2026
- −3.8%
- Gross rental yield, houses · Cotality, Sep 2026
- 3.5%
- Gross rental yield, units · Cotality, Sep 2026
- 5.2%
- Rental vacancy rate · SQM, Sep 2026
- 1.9%
- Houses, 10-year growth · HtAG
- 4.8% a year
- Typical house rent · HtAG
- $622 a week
Sources are listed with each figure; see the full list at the end of this guide. HtAG figures cover Greater Melbourne (31 council areas), to 30 September 2026.
Melbourne property prices and growth
The past year
Cotality's index shows Melbourne house values fell 7.3% and unit values 3.8% over the 12 months to September 2026, with dwelling values down 3.4% in the September quarter. Dwelling values are 7.2% below their November 2025 high and 7.5% below the record set in March 2022. Higher interest rates and weaker confidence have hit a market that never fully recovered from the 2022 downturn.
The long run
Over 10 years, HtAG's data shows typical house values across Greater Melbourne growing 4.8% a year and units just 1.2%, one of the weakest results of any capital. Growth has come from the outer suburbs: Wyndham, Cardinia and Hume houses grew more than 7% a year over the decade, while Boroondara and Stonnington, two of the most expensive councils, barely moved.
| Past 12 months | 3 years (a year) | 5 years (a year) | 10 years (a year) | |
|---|---|---|---|---|
| Houses | −7.3% | +2.6% | +3.0% | +4.8% |
| Units | −3.8% | −0.1% | −0.2% | +1.3% |
Past 12 months: Cotality, 12 months to September 2026. Three, five and 10 years: annual compound growth in typical values, HtAG Analytics, to 30 September 2026, averaged across 31 council areas weighted by sales. HtAG’s values are modelled and smoothed, so they react to turning points more slowly than Cotality’s monthly index.
At 4.8% a year, a house worth $500,000 in 2016 would be worth about $801,000 today. That’s an average: individual suburbs and properties did much better or worse, and past growth is no guide to the future. Model your own scenarios in the property growth calculator.
Rents, yields and vacancy in Melbourne
Rents have risen more consistently than values: about 6.4% a year for houses and 7.4% a year for units over five years, and 5.0% over the year to August 2026 on Cotality's measure. A typical house rents for about $622 a week, from around $462 in Melton to $1,149 in Stonnington. Gross yields of 3.5% for houses and 5.2% for units are higher than Sydney's, but Victoria's land tax changes from 2024 mean even a modest investment can attract an annual land tax bill, so compare yields after that cost.
| Typical rent a week | Rent growth, 5 years (a year) | Gross yield | |
|---|---|---|---|
| Houses | $622 | 6.4% | 3.5% |
| Units | $622 | 7.4% | 5.2% |
Rents: HtAG Analytics typical weekly rent, September 2026, averaged across council areas weighted by rental listings. Gross yield: Cotality, September 2026. Vacancy: SQM Research, September 2026.
Gross yield is a first filter, not the whole story. Test the cash flow of a specific property, after interest, rates, insurance, management and maintenance, in the property cash flow calculator.
Melbourne council areas compared
Over 10 years, the outer growth councils in the west, north and south-east lead on house growth, helped by lower entry prices. The inner and eastern councils with the highest values have the weakest numbers.
| Council area | House rent | Houses, 5 yrs (a yr) | Houses, 10 yrs (a yr) | Unit rent | Units, 5 yrs (a yr) | Units, 10 yrs (a yr) |
|---|---|---|---|---|---|---|
| Banyule | $667 | 0.1% | 2.2% | $558 | 0.4% | 1.1% |
| Bayside | $1,040 | -1.5% | 0.9% | $696 | -1.1% | 1.2% |
| Boroondara | $950 | -1.6% | 0.5% | $649 | -1.8% | 0.1% |
| Brimbank | $546 | 2.9% | 4.4% | $455 | 1.6% | 3.3% |
| Cardinia | $581 | 5.3% | 7.4% | $486 | 6.0% | 6.3% |
| Casey | $571 | 4.7% | 6.4% | $492 | 3.5% | 5.1% |
| Darebin | $768 | 1.7% | 3.3% | $565 | -0.1% | 2.3% |
| Frankston | $617 | 2.9% | 5.6% | $514 | 2.0% | 4.3% |
| Glen Eira | $908 | 0.1% | 1.8% | $622 | -1.2% | 0.6% |
| Greater Dandenong | $607 | 3.2% | 4.0% | $495 | 2.1% | 3.1% |
| Hobsons Bay | $710 | 0.9% | 2.9% | $536 | 1.2% | 2.6% |
| Hume | $524 | 4.8% | 7.1% | $467 | 2.6% | 4.0% |
| Kingston | $730 | 1.5% | 3.0% | $578 | 0.2% | 2.0% |
| Knox | $635 | 1.8% | 3.8% | $546 | 1.7% | 3.3% |
| Manningham | $722 | 0.4% | 2.2% | $604 | -0.3% | 0.4% |
| Maribyrnong | $679 | 0.3% | 2.3% | $540 | -0.9% | 0.9% |
| Maroondah | $652 | 0.4% | 3.1% | $534 | 1.2% | 2.7% |
| Melbourne | $990 | -0.9% | 1.0% | $707 | -1.6% | -0.4% |
| Melton | $462 | 5.5% | 6.4% | $385 | 5.0% | 6.2% |
| Merri-bek | $711 | 1.0% | 3.0% | $560 | 0.5% | 2.0% |
| Monash | $702 | 0.9% | 2.0% | $594 | 0.2% | 1.2% |
| Moonee Valley | $754 | 1.7% | 3.2% | $555 | -0.2% | 1.2% |
| Mornington Peninsula | $676 | -0.5% | 5.1% | $523 | 0.8% | 3.9% |
| Nillumbik | $679 | 1.7% | 4.3% | $540 | 1.7% | 3.1% |
| Port Phillip | $1,105 | -0.1% | 1.4% | $684 | -1.2% | 0.1% |
| Stonnington | $1,149 | -2.6% | -0.3% | $713 | -1.1% | 0.0% |
| Whitehorse | $697 | 0.4% | 1.9% | $578 | -0.2% | 0.5% |
| Whittlesea | $536 | 3.5% | 5.6% | $460 | 2.1% | 2.6% |
| Wyndham | $474 | 7.1% | 7.4% | $447 | 2.9% | 4.1% |
| Yarra | $1,034 | -0.4% | 1.4% | $749 | -0.4% | 1.4% |
| Yarra Ranges | $648 | 1.5% | 4.6% | $528 | 2.0% | 3.9% |
HtAG Analytics, typical weekly rents and annual compound growth in typical values, to 30 September 2026. Council figures hide big differences between suburbs, and a dash means there weren’t enough sales for a reliable figure.
What drives the Melbourne property market
Melbourne is a large and diverse economy, with strengths in education, health, finance, manufacturing and the creative industries. Its universities, including the University of Melbourne, Monash, RMIT and Deakin, draw students from across Australia and overseas, which supports rental demand in suburbs close to campuses and along the tram and train lines. The city is also a major port and freight hub, which supports logistics and warehousing jobs in the western and northern suburbs.
The housing market is really several markets. The CBD, Docklands and Southbank hold a large stock of apartments, much of it built in a short period, so building quality and supply in a given block matter a great deal. Established middle-ring suburbs offer older houses and period homes, often under heritage controls. The growth corridors in the west, north and south-east have large amounts of new land and house-and-land product, where future supply in the same estate is a key consideration.
Major employment and research clusters such as the Parkville biomedical precinct and the Monash area around Clayton create steady demand nearby. For investors, Melbourne rewards careful area and property selection more than broad market calls. Tenants here tend to value tram and train access, local shopping strips and proximity to schools, so these are weighed property by property.
What to check before you buy in Melbourne
Apartment supply
In high-density areas, the number of similar units nearby affects both rents and resale, so it is checked block by block.
Heritage overlays
Many established suburbs carry heritage controls that limit renovations and extensions.
New estate supply
In the growth corridors, land still to be released in the same estate competes with your property for tenants and buyers.
Flood overlays
Areas near the Maribyrnong River and other waterways can carry flood overlays that affect insurance and lending.
State holding costs
Victorian land tax and other state charges are factored into cashflow before a property is recommended.
What to watch in Melbourne in 2026 and 2027
- Metro Tunnel. The Metro Tunnel opened in late 2025, with new stations at Arden, Parkville, State Library, Town Hall and Anzac, linking the Sunbury line in the north-west with the Cranbourne and Pakenham lines in the south-east.
- Suburban Rail Loop. Construction of Suburban Rail Loop East, from Cheltenham to Box Hill, is under way, and the state is planning more housing around its future stations.
- Apartment pipeline. Fewer apartments are being started than during the 2010s boom. Check the pipeline around any building before buying a unit.
- State taxes. Victoria's land tax increases since 2024 raise holding costs for investors, especially if you already own other property in the state.
- The 2027 tax changes. From 1 July 2027, net rental losses on established homes bought after 7:30pm AEST on 12 May 2026 can no longer reduce tax on your salary; new builds keep negative gearing. The 50% capital gains discount is also being replaced by indexation for gains after that date. Read what the negative gearing reform means.
Buying costs for investors in Victoria
Stamp duty is the biggest upfront cost after your deposit. At 2026-27 general rates, transfer duty on an investment property in Victoria is:
| Purchase price | Stamp duty |
|---|---|
| $600,000 | $31,070 |
| $800,000 | $43,070 |
| $1,000,000 | $55,000 |
Add legal and conveyancing fees, building and pest inspections, loan costs and lenders mortgage insurance if you borrow more than 80%. Land tax may apply each year depending on the land value you hold in Victoria. Estimate them in the VIC stamp duty calculator, the purchase cost calculator and the land tax calculator.
Is Melbourne a good place to invest in 2026?
Melbourne offers investors lower entry prices than most capitals, a large and diverse economy and steady rent growth, after years of underperformance. Values are falling again in 2026, so the case rests on a long-term view and on choosing houses and townhouses with land over apartments, which have barely grown in a decade. Higher Victorian land tax means the cash flow needs careful testing.
Melbourne may suit you if
- You want a house or townhouse in a large capital for less than most other capitals.
- You're comfortable buying into a falling market on a long-term view.
- You don't already own Victorian property that would push up your land tax.
Think carefully if
- You're considering an investor-style apartment in a high-rise building.
- You need strong growth in the next year or two.
- Land tax on property you already own in Victoria would make the cash flow negative.
We don’t start with a city. We start with your budget, borrowing power and goals, then test Melbourne against every market that fits, down to the suburb, street and property. See how we buy in Melbourne as a buyers agent, or book a free discovery call.
Sources
- Cotality Home Value Index, October 2026 release (values to 30 September 2026)
- Cotality Monthly Housing Chart Pack, September 2026 (rents to August 2026)
- SQM Research, residential vacancy rates, September 2026
- HtAG Analytics, council-area typical values and rents, to 30 September 2026
- VIC revenue office, 2026-27 transfer duty rates
Figures can be revised, and different data providers measure prices differently, so their numbers won’t always match. General information only: it doesn’t consider your circumstances, isn’t financial, tax or legal advice, and isn’t a forecast.
How it works
From first call to keys in hand
- 01
Strategy · Free
Discovery call
- 02
Strategy
Strategy session
- 03
Strategy
Strategic brief
- 04
Acquisition
Research and selection
- 05
Acquisition
Negotiation and due diligence
- 06
Acquisition
Settlement and handover
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What clients say about working with us
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Is Melbourne a good place to invest in property in 2026?
What is the median house price in Melbourne?
How much have property prices grown in Melbourne?
What rental yield can you get in Melbourne?
What is the rental vacancy rate in Melbourne?
Should you buy a house or a unit in Melbourne?
How much is stamp duty on an investment property in Melbourne?
Can I buy an investment property in Melbourne if I don't live there?
How much money do I need to start?
You need a minimum of $100,000 in cash or equity, and our minimum purchase price is $400,000.
Should I buy now or should I wait?
It depends on your finances, borrowing capacity and goals more than on timing the market. Waiting has a cost if well-chosen property keeps rising, and buying has risks if it stretches your finances. On the discovery call we look at your position and tell you honestly whether buying now makes sense for you.
What is the average price of the properties you buy?
We source properties from $400,000, our minimum purchase price. The final price depends on your personalised strategy and goals.
How long does the process take from the discovery call?
If you qualify to work with us, the next step will be a 45-minute Strategy Session with one of our advisors. From here, it takes 4 to 12 weeks from signing up to settlement, depending on your criteria, goals, and strategic brief.
Do you recommend accountants, brokers, property managers, lawyers, and tax agents?
Yes, we have recommendations for all of those partners. As part of our service, we find the right team for you, and your property depending on the location of the investment. We handle the admin so that this is seamless for you.
What happens if I don't like the property that you present?
Typically, this does not happen since we spend so much time at the start of the journey developing a plan and understanding your needs and how they will fit into your property portfolio. When we create a Strategic Brief, we are extremely clear about the results and do not deliver any properties that do not fit that brief. We typically look at 60 properties before we present the ONE to you. So you can be sure, we are sure.
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