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Yes, the analysis of Melbourne's property market is included in our pack
Melbourne's apartment market offers compelling value with median prices around $615,000-$621,000, significantly below Sydney's rates while maintaining strong growth potential. The city provides diverse options from budget-friendly outer suburbs starting at $350,000 to premium areas exceeding $800,000, making it accessible for both first-time buyers and investors seeking capital growth opportunities.
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Melbourne apartment prices currently average $615,000-$621,000, with one-bedroom units ranging $450,000-$600,000 and two-bedroom apartments typically costing $600,000-$750,000.
Budget-conscious buyers can find quality apartments from $350,000 in outer suburbs like Melton South, while premium areas like Beaumaris command $800,000-$1.1M+ for luxury units.
| Location Type | Price Range | Example Areas |
|---|---|---|
| CBD/Central | $550,000-$600,000 | Melbourne, Southbank |
| Inner Suburbs | $535,000-$600,000+ | Kensington, Flemington |
| Middle Suburbs | $400,000-$600,000 | West Footscray, Kingsbury |
| Outer Suburbs | $350,000-$400,000 | Melton South, Albion |
| Premium Areas | $800,000-$1.1M+ | Beaumaris, Mont Albert North |
| Budget-Friendly Inner | $380,000-$400,000 | Carlton, Travancore |
| Growth Areas | $400,000-$560,000 | Sunshine West, Craigieburn |
What's the current average price of an apartment in Melbourne?
As of September 2025, the median apartment price in Melbourne ranges from $615,000 to $621,000.
This figure places Melbourne's apartment market below Australia's national median apartment price of $690,000, making it significantly more affordable than Sydney while still offering strong investment potential. The Melbourne apartment market remains one of the most accessible among Australia's major capital cities for both first-time buyers and property investors.
Melbourne's apartment prices show considerable variation depending on location, with central CBD apartments typically priced around $550,000-$600,000. The city's apartment market benefits from strong infrastructure development and urban planning policies that continue to attract both domestic and international buyers.
Compared to national averages, Melbourne apartments offer exceptional value while maintaining access to world-class amenities, transportation networks, and employment opportunities that justify long-term investment confidence.
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How do apartment prices vary between one-bedroom, two-bedroom, and larger units?
Melbourne's apartment pricing follows a clear progression based on bedroom count, with significant jumps between each category.
One-bedroom apartments typically range from $450,000 to $600,000, with inner-city locations generally falling toward the lower end at $450,000-$550,000. These units appeal strongly to young professionals, investors seeking rental yield, and downsizers looking for low-maintenance living options.
Two-bedroom apartments command prices between $600,000 and $750,000 across most Melbourne areas, representing the market's sweet spot for both owner-occupiers and investors. This category offers the best balance of affordability and rental appeal, particularly for small families and professional couples.
Three-bedroom and larger apartments experience steep price increases, typically starting at $700,000 and often exceeding $1 million in prestigious neighborhoods. Larger, older three-bedroom apartments occasionally sell at premium prices due to their scarcity and desirability, particularly in established inner suburbs where new large-format apartments are rare.
The price gap between each bedroom category reflects Melbourne's housing demand patterns, where larger apartments in prime locations command significant premiums due to limited supply and strong buyer competition.
What's the typical cost difference between buying a new build versus an older apartment?
Older apartments in central and inner Melbourne neighborhoods typically sell for $30,000 to $40,000 more than comparable new builds.
This price premium for established apartments reflects several key market factors. Older buildings often feature larger floor plans, higher ceilings, and architectural character that new developments cannot replicate. Many established apartments also occupy prime locations that are no longer available for new development.
Established apartments in smaller complexes generally experience better capital growth rates compared to new high-density developments. Buyers value the proven track record of older buildings, established body corporate management, and the absence of potential construction defects that sometimes affect new builds.
However, new luxury developments may command premium pricing in specific market segments, particularly when they offer cutting-edge amenities, energy efficiency, or prestigious locations. The general market trend favors established "character" buildings for their long-term value retention and appreciation potential.
Investors often prefer older apartments for their immediate rental appeal and established neighborhood dynamics, while new builds may require time to develop their market reputation and surrounding amenities.
How do prices compare across central Melbourne, inner suburbs, and outer suburbs?
Melbourne's apartment pricing structure reflects a clear geographic hierarchy with distinct price bands across different zones.
| Area Category | Median Price Range | Key Characteristics |
|---|---|---|
| CBD/Central Melbourne | $550,000-$600,000 | High-density towers, excellent transport, premium amenities |
| Inner Suburbs (0-5km) | $535,000-$600,000+ | Character buildings, walkable neighborhoods, strong rental demand |
| Middle Suburbs (5-15km) | $400,000-$600,000 | Family-friendly areas, good transport links, value opportunities |
| Outer Suburbs (15km+) | $350,000-$400,000 | Affordable entry points, developing infrastructure, growth potential |
| Premium Inner Areas | $800,000-$1.1M+ | Exclusive neighborhoods, luxury amenities, prestige locations |
Central Melbourne and Southbank maintain relatively moderate pricing despite their premium locations, reflecting the high supply of apartment stock in these areas. Inner suburbs often command premium prices due to their character, established amenities, and limited apartment supply in low-rise developments.
Which areas are considered the most expensive, the most budget-friendly, and the ones with strong upcoming growth?
Melbourne's apartment market offers distinct categories of suburbs based on pricing and growth potential.
Most Expensive Areas:
- Beaumaris - $895,000 median (premium bayside location)
- Mont Albert North - $888,000 median (exclusive eastern suburb)
- Ivanhoe East - $710,000 median (leafy inner north)
- Bayside suburbs generally (premium coastal lifestyle)
- Select inner east and north pockets (established prestige)
Budget-Friendly Options:
- Herne Hill, Albion, Melton South - $350,000-$375,000
- Corio - approximately $350,000-$375,000
- Travancore, Carlton, Flemington - under $400,000 (close to CBD)
- Sunshine West - affordable with improving amenities
- Craigieburn - outer growth corridor value
Strong Growth Potential Areas:
- West Footscray - established middle suburb with infrastructure development
- Kingsbury - affordable middle ring with transport improvements
- Sunshine West - major redevelopment projects underway
- Lalor - northern growth corridor expansion
- Many affordable inner and middle suburbs showing consistent appreciation
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What are some real examples of purchase prices for apartments in different neighborhoods?
Recent apartment sales across Melbourne demonstrate the significant price variation between different neighborhoods and their distinct market positioning.
Inner Suburb Examples: Carlton apartments have sold for approximately $390,000, while nearby Flemington recorded sales around $401,500. These inner suburbs offer exceptional value for proximity to the CBD while maintaining neighborhood character and amenities.
Middle Suburb Pricing: West Footscray apartments have transacted around $560,000, representing good value for established middle-ring locations with strong transport connections. Kingsbury has seen sales around $445,500, appealing to buyers seeking affordability with growth potential.
Outer Suburb Value: Melton South apartments have sold for approximately $360,000, demonstrating the significant savings available in outer growth corridors while still maintaining reasonable commute times to central Melbourne.
Premium Market Examples: Beaumaris apartments command around $895,000, reflecting the premium paid for bayside lifestyle and prestigious addresses that appeal to affluent buyers seeking luxury amenities.
These real-world examples illustrate how location, amenities, and transport accessibility directly influence apartment pricing across Melbourne's diverse neighborhood offerings.
What's the total cost of buying an apartment once you include fees, taxes, and stamp duty?
The total cost of purchasing a Melbourne apartment extends significantly beyond the purchase price due to various government charges and professional fees.
Stamp Duty Costs: For apartments up to $600,000, first-home buyers may receive discounts or full exemptions. Properties between $600,000-$750,000 qualify for reduced rates for eligible buyers. For a typical $615,000 apartment, stamp duty ranges from $27,000-$32,000 unless exemptions apply, calculated as $2,870 plus 6% of the value above $130,000.
Additional Purchase Costs: Conveyancing fees typically range from $1,200-$2,500, while lenders mortgage insurance applies when deposits fall below 20% of the purchase price. Loan establishment fees, building inspections, and moving costs add further expenses to the transaction.
Total Additional Costs: Buyers should budget $6,000-$15,000+ in additional costs depending on their specific situation, financing arrangements, and whether they qualify for first-home buyer concessions.
New Build Advantages: Off-the-plan and new build apartments often qualify for lower dutiable values and various government concessions, potentially reducing the overall transaction costs significantly compared to established properties.
Smart buyers factor these additional costs into their total budget to avoid financial surprises during the settlement process.
How do mortgage costs typically look for someone buying an average apartment in Melbourne?
Mortgage repayments for Melbourne apartments depend on purchase price, deposit size, and current interest rates as of September 2025.
Typical Scenario Example: For a $600,000 apartment with a 20% deposit ($120,000), the resulting loan amount of $480,000 generates monthly repayments of approximately $2,730-$2,800 at current fixed rates around 5.5% per annum over a 25-30 year loan term.
Deposit Requirements: Most buyers need 10-20% deposit, though first-home buyers may access lower deposit schemes through government programs or lender initiatives. Higher deposits reduce both loan amounts and eliminate lenders mortgage insurance costs.
Interest Rate Impact: Current mortgage rates significantly influence repayment amounts, with even small rate changes creating substantial monthly payment differences over typical loan terms. Buyers should factor potential rate movements into their long-term budgeting.
First-Home Buyer Support: Various government grants and schemes help eligible first-home buyers reduce deposit requirements and access favorable lending terms, making apartment ownership more accessible for entry-level buyers.
Prospective buyers should obtain pre-approval to understand their borrowing capacity and monthly commitment before beginning their apartment search.
What are the smartest apartment investment choices today if you plan to live in it, rent it out, or buy to resell later?
Melbourne's apartment investment strategies vary significantly depending on your intended use and investment timeline.
Owner-Occupier Strategy: Look for established older apartments in smaller complexes within inner and middle suburbs offering easy transport access, low vacancy rates, and proximity to quality schools. These properties provide lifestyle benefits while maintaining strong capital growth potential for future wealth building.
Long-Term Rental Investment: Target high-yielding affordable units in budget-friendly, well-connected suburbs like Albion, Herne Hill, and Melton South. These areas offer strong rental demand from young professionals and families seeking affordable housing with reasonable commute times.
Short-Term Rental Opportunities: Central locations including CBD, Carlton, and Southbank provide excellent short-term rental potential, though investors must carefully research local council regulations regarding Airbnb-style accommodations before committing to this strategy.
Capital Growth Focus: Older, well-maintained units in growth corridors or gentrifying suburbs offer the best potential for price appreciation, particularly when buyers can add value through strategic renovations or improvements that enhance rental appeal and resale value.
It's something we develop in our Australia property pack.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How have average apartment prices changed compared to one year ago and five years ago?
Melbourne's apartment market has shown resilience with modest growth over recent periods, though performance varies significantly by suburb and property type.
One-Year Performance: Melbourne apartment prices have remained essentially flat with a slight increase of 0.4% in the last quarter, but down 1.6% year-over-year to May 2025. House prices have shown stronger performance with increases of 2-2.5% over the same period, indicating apartments are lagging behind broader market growth.
Five-Year Trends: Individual suburbs have experienced highly varied performance ranging from -5% to +20% depending on local demand factors. Notable performers include Herne Hill with +18.6% growth and Albion with +12.1% increases, while some inner-urban markets have experienced modest declines.
Market Context: The apartment segment has underperformed compared to houses over recent years, creating potential value opportunities for buyers entering the market. Economic factors including interest rates, population growth, and housing supply have influenced these trends.
Recovery Indicators: Recent data suggests the apartment market may be positioned for stronger growth as affordability pressures push more buyers toward unit purchases rather than houses, potentially driving increased demand and price appreciation.
These trends indicate apartments may offer good entry-level opportunities for buyers who time their purchase well within the current market cycle.
What are the forecasts for apartment prices in Melbourne over the next one year, five years, and ten years?
Melbourne's apartment market forecasts indicate strong growth potential across all timeframes, with particularly optimistic projections for the medium term.
2026 Forecast (1 Year): Industry experts predict apartment price increases of 7.1% over the next year, representing approximately $43,000 growth on current median prices. This forecast reflects improving market conditions and increasing buyer confidence in Melbourne's apartment sector.
2030 Projection (5 Years): Long-term forecasts suggest Melbourne's median apartment price could reach approximately $1.1 million by 2030, assuming historical annual growth rates of around 7.7% continue. However, these projections remain subject to economic conditions, interest rate movements, and government policy changes.
2035 Outlook (10 Years): Extended projections indicate continued strong growth potential based on Melbourne's fundamental drivers including population growth, infrastructure development, and relative affordability compared to Sydney. Long-term trends support confidence in sustained appreciation, though specific rates will depend on future economic cycles.
Growth Drivers: Key factors supporting these forecasts include Melbourne's continuing population growth, major infrastructure projects, relative affordability compared to other capitals, and shifting buyer preferences toward apartment living in well-connected locations.
Investors should consider these forecasts as indicative rather than guaranteed, while using them to inform long-term investment strategies and timing decisions.
How do Melbourne's apartment prices compare to other big cities like Sydney, Brisbane, or similar international cities?
Melbourne's apartment market occupies a strategic middle position among Australia's major cities, offering significant value advantages while maintaining strong growth prospects.
| City | Median Apartment Price | Relative Position |
|---|---|---|
| Sydney | $700,000-$800,000+ | Most expensive, limited affordability |
| Melbourne | $615,000-$621,000 | Good value with strong amenities |
| Brisbane | $530,000-$600,000 | Most affordable major capital |
| Perth | $450,000-$550,000 | Resource-dependent market cycles |
| Adelaide | $380,000-$480,000 | Emerging value opportunities |
Sydney Comparison: Melbourne apartments cost approximately $85,000-$180,000 less than comparable Sydney properties, while offering similar lifestyle amenities, cultural attractions, and employment opportunities. This price differential makes Melbourne attractive for buyers priced out of Sydney's market.
Brisbane Position: While Brisbane offers slightly lower entry prices, Melbourne provides superior infrastructure, cultural amenities, and international connectivity that justify the modest price premium for many buyers seeking long-term value.
International Context: Melbourne apartments remain highly affordable compared to major international cities when adjusted for local incomes, lifestyle quality, and investment fundamentals. The city offers excellent value for international buyers seeking stable, English-speaking markets with strong legal protections.
Value Proposition: Melbourne represents the sweet spot for apartment buyers seeking major city amenities without Sydney's premium pricing, while offering better infrastructure and opportunities than smaller capitals.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Melbourne's apartment market presents compelling opportunities for both investors and owner-occupiers, with median prices around $615,000-$621,000 offering excellent value compared to Sydney while maintaining strong growth potential.
The diverse range of options from budget-friendly outer suburbs at $350,000 to premium areas exceeding $800,000 ensures accessibility across different buyer segments, supported by forecasts indicating 7.1% growth in 2026 and continued long-term appreciation.
Sources
- Metropole - Melbourne Housing Market Update
- OpenAgent - Melbourne Property Market
- Statista - Melbourne Median Unit Price
- Your Mortgage - Median House Prices Australia
- Motion Property - Affordable Melbourne Suburbs
- RealEstate.com.au - Affordable Inner City Suburbs
- OpenAgent - Cheapest Melbourne Suburbs
- Property Buyer - Melbourne Property Prices by Suburb