Melbourne's Property Market: A Bargain Hunter's Paradise

Melbourne's property landscape offers a distinctive picture compared to Australia's major cities, with a notably stable market over recent years.

PropTrack data shows the city's median dwelling values increased only 19.2% over the past five years, trailing significantly behind the combined capital cities' average rise of 45.5%.

As of July 2025, Melbourne's median dwelling value was recorded at $824,000, making it the most affordable amongst the five major capitals, trailing the collective median of $929,000 by 11.3%. A historical analysis reveals that Melbourne’s housing affordability relative to other cities is nearing its peak over the last two decades.

This price point dynamic is capturing attention. KPMG anticipates Melbourne will lead Australia's housing markets in 2026 owing to increasing interest from bargain-seeking buyers. Predictions indicate a 6.6% hike in Melbourne home prices next year, surpassing the average national increase of 4.5%.

KPMG’s chief economist, Brendan Rynne, remarked on robust expectations, particularly within the unit market due to its enticing affordability. This sentiment is shared by buyer advocate Arin Russell, who notes a surge of Western Australian investors eyeing Melbourne to leverage a potential upswing before a full market recovery surfaces.

Despite Melbourne's economic challenges and less favourable tax conditions for investors, the city's allure lies in its affordability and projected significant population growth. The Victorian state government forecasts that Melbourne's population will reach nine million by 2050, fueling potential property demand.

Published:Tuesday, 12th Aug 2025
Source: Paige Estritori

Share this news item:

Finance News

Pressures Mount as Australian Wage Growth Slows

28 Aug 2025: Paige Estritori

Australian real wages have hit a challenging plateau, currently trailing 6.1% below their mid-2022 'covid-bubble' heights. The Reserve Bank of Australia's (RBA) recent Statement of Monetary Policy provides little solace, projecting that real wages will stay 5.5% beneath their peak by the close of 2027. This comes amidst SEEK's latest advertised salaries index, which paints a picture of slowing wage growth. - read more

Unexpected Inflation Surge Puts RBA Rate Cut on Hold

28 Aug 2025: Paige Estritori

The latest inflation figures from the Australian Bureau of Statistics have disrupted expectations for a rate cut by the Reserve Bank of Australia (RBA) in September. July's monthly CPI inflation escalated to an annual rate of 2.8%, rising significantly from June's 1.9% and outstripping forecasts from multiple market analysts. This unexpected inflationary surge is mainly attributed to a dramatic 13.0% hike in electricity prices and robust travel costs. - read more

Home Loan Scheme Could Drive Up Prices, Warns Insurance Body

27 Aug 2025: Paige Estritori

A new federal scheme, designed to lower the demand for lenders’ mortgage insurance (LMI), may inadvertently escalate home prices and hinder lower-income earners' ability to purchase property, according to concerns raised by Australian insurers. The Home Guarantee Scheme, set to expand in October, offers first-time buyers the opportunity to bypass the usually required LMI if they have managed a deposit of just 5%. - read more

Labor Speeds Up Mortgage Guarantee Extension

26 Aug 2025: Paige Estritori

The Australian federal government has announced an earlier implementation of its expanded program guaranteeing low-deposit loans for first-time home buyers, set for October. This program aims to eliminate the need for lenders' mortgage insurance (LMI) by allowing first-home purchasers with just a 5% deposit to enter the market. Previously planned for next year, the revamped policy also removes income caps and raises property price limits. - read more

Australian Household Spending Set to Surge with Rate and Tax Relief

25 Aug 2025: Paige Estritori

A significant financial shift is on the horizon for Australian households. After years of stringent budgeting, new data suggests a revitalisation in household spending, thanks to recent interest rate cuts and tax relief measures introduced last July. - read more

Truck Loans Articles

The Ultimate Checklist for Managing Truck Loan Paperwork in Australia

Managing truck loan paperwork may seem like a mundane task, but it is essential for both individuals and businesses. Staying organised can save time, reduce stress, and ensure that nothing important is overlooked. - read more

Trucking finance: How leasing can help grow your business

Running a successful trucking business in Australia can be a challenge, but with the right financing options, you can grow your business and increase profits. One popular financing option for truckers in Australia is leasing. Leasing allows trucking businesses to acquire vehicles and equipment necessary for their operations without incurring the high costs of outright purchase. - read more

Common Pitfalls to Avoid When Applying for Commercial Truck Financing

Securing the right financing is a crucial step for any commercial trucking business. With the right loan, businesses can acquire the essential vehicles and equipment needed to expand their operations and improve efficiency. However, navigating the landscape of commercial truck financing can be challenging, especially for those unfamiliar with the process. - read more

A Comprehensive Guide to Heavy Vehicle Financing in Australia

When traversing the expansive landscapes of Australia, heavy vehicles are an integral part of the transportation framework, powering industries and connecting markets. The heavy vehicle industry in Australia is a critical component of the national economy, encompassing a wide range of vehicles from buses and coaches to large trucks and road trains essential for the movement of goods and services. - read more

How to Budget Effectively for Commercial Vehicle Loan Repayments

Managing repayments for a commercial vehicle loan is a critical aspect of running a successful business. Without a solid plan, unexpected costs and missed payments can create financial strain. - read more

Start Here

Get a free truck loan eligibility assessment and compare truck finance and leasing options without accessing your credit file!!

Knowledgebase

Return on Investment (ROI):
A measure used to evaluate the efficiency of an investment or compare the efficiency of several different investments.