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Yes, the analysis of Melbourne's property market is included in our pack
Melbourne remains one of Australia's most dynamic property markets with significant variation across suburbs in terms of pricing, growth potential, and investment returns.
The city's property landscape offers everything from affordable outer suburbs like Melton and Norlane with median house prices around $470,000-$530,000, to premium inner-city areas commanding well over the Melbourne average of $940,000 for houses.
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Melbourne's property market shows strong variation across suburbs, with outer areas like Melton and Norlane offering affordable entry points at $470,000-$530,000 while delivering solid rental yields of 4.0-4.7%.
Growth has been uneven over the past five years, with some affordable suburbs posting gains of 22-32% while certain inner areas experienced stagnation or small declines.
| Suburb Type | Average House Price | Rental Yield | 5-Year Growth | Distance from CBD | Vacancy Rate |
|---|---|---|---|---|---|
| Affordable Outer (Melton) | $470,000-$530,000 | 4.0-4.7% | 22% | 47km | 2.6% |
| Growth Outer (Norlane) | $470,000-$530,000 | 4.0-4.7% | 32% | 75km | 1.0% |
| Melbourne Average | $940,000 | 3.0-5.0% | Variable | - | 1-3% |
| Inner Suburbs | $940,000+ | 2.5-4.0% | Stagnant/Decline | Within 10km | 1-3% |
| Units (City-wide) | $350,000-$650,000 | 3.5-5.5% | Variable | Variable | 1-3% |
What's the average property price in different Melbourne suburbs right now?
As of September 2025, Melbourne's property prices vary dramatically across different suburbs and property types.
The overall Melbourne median house price sits at approximately $940,000, but this figure masks significant variation across the metropolitan area.
Affordable outer suburbs like Melton and Norlane offer entry points between $470,000 and $530,000 for houses, making them attractive to first-time buyers and investors seeking lower capital requirements. These areas represent some of the most accessible price points in Greater Melbourne.
Unit prices across Melbourne typically range from $350,000 to $650,000, depending on location, size, and amenities. Inner-city apartments command premium prices, while outer suburban units offer more affordable alternatives.
Premium inner suburbs and established middle-ring areas often exceed the Melbourne median significantly, with many properties selling well above $1 million.
How much have property values changed over the past five years?
Melbourne's property market has experienced uneven growth patterns over the past five years, with significant variation between suburbs.
Outer affordable areas have delivered some of the strongest capital growth, with suburbs like Melton recording approximately 22% price increases over the five-year period ending in 2025.
Norlane has been a standout performer, posting growth of around 32% over the same period, reflecting strong demand in this growth corridor.
However, some inner Melbourne suburbs have experienced stagnation or small price declines, particularly in certain apartment markets that saw oversupply issues in recent years.
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What's the median household income and typical mortgage repayment situation?
Melbourne households earn a median weekly income of approximately $780-$800 per individual, which aligns with national averages for major capital cities.
For a median-priced Melbourne house at $720,000 with a standard 20% deposit, average weekly mortgage payments are approximately $778.
This means mortgage repayments consume almost 100% of a single median income, highlighting the importance of dual-income households for property affordability in Melbourne.
Outer suburbs with lower property prices offer more manageable mortgage-to-income ratios, making them attractive to buyers seeking better affordability.
The mortgage stress test typically requires households to demonstrate they can service repayments at rates 2-3% higher than current levels, which affects borrowing capacity across all suburbs.
What are the rental yields and vacancy rates for investment properties?
Melbourne's rental market offers varying investment returns depending on location and property type.
| Area Type | Gross Rental Yield | Vacancy Rate |
|---|---|---|
| Affordable Outer Suburbs (Melton, Norlane) | 4.0-4.7% | 1.0-2.6% |
| Middle Ring Suburbs | 3.5-4.5% | 1.5-3.0% |
| Inner City Apartments | 3.0-4.0% | 2.0-4.0% |
| Premium Suburbs | 2.5-3.5% | 1.0-2.5% |
| Melbourne Average | 3.0-5.0% | 1.0-3.0% |
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How many properties sell annually and how quickly do they sell?
Melbourne's property sales activity varies significantly across different suburbs and market conditions.
Highly active suburbs can record hundreds of property transactions annually, with turnover rates influenced by factors like affordability, infrastructure development, and population growth.
Properties in hot growth areas typically sell within 30-45 days of listing, particularly in suburbs experiencing strong demand from both owner-occupiers and investors.
Outer suburban areas with good transport links and development potential often see faster sales cycles during peak buying seasons (spring and early autumn).
Market conditions in September 2025 show that well-priced properties in desirable locations continue to attract multiple offers, while overpriced or poorly positioned properties may take 60-90 days or longer to sell.
What's the average size and type of housing stock available?
Melbourne's housing stock reflects the city's diverse suburban character and historical development patterns.
Detached houses dominate outer and middle-ring suburbs, typically featuring 3-4 bedrooms on blocks ranging from 400-700 square meters.
Inner suburbs lean heavily toward apartments and units, with most being 2-bedroom configurations designed for urban living.
Affordable outer suburbs like Melton and Norlane predominantly offer family-sized houses with larger blocks, appealing to buyers seeking space and value.
The city's housing mix includes a growing number of townhouses and medium-density developments, particularly in middle-ring suburbs undergoing urban renewal.
What's the population growth rate and future projections?
Melbourne continues to be one of Australia's fastest-growing capital cities, driven by both international and interstate migration.
Many growth suburbs are recording annual population increases of 1-3%, with continued strong net migration supporting housing demand.
City-wide population projections suggest Melbourne could maintain growth rates of 1-1.5% per year over the next decade, adding substantial housing demand.
Outer growth corridors are experiencing the strongest population increases, supported by new infrastructure projects and employment opportunities.
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How far are different areas from the CBD and what are commuting times?
Distance from Melbourne's CBD significantly impacts property prices, lifestyle, and investment potential across different suburbs.
| Suburb Type | Distance from CBD | Public Transport Time | Car Commute Time |
|---|---|---|---|
| Inner Suburbs | Within 10km | 15-35 minutes | 15-30 minutes |
| Middle Ring | 10-25km | 25-45 minutes | 25-45 minutes |
| Outer Suburbs (Melton) | 47km | 60-75 minutes | 45-60 minutes |
| Outer Suburbs (Norlane) | 75km | 65-80 minutes | 50-70 minutes |
| Growth Corridors | 25-50km | 45-75 minutes | 35-55 minutes |
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What's the unemployment rate compared to Melbourne's average?
Melbourne's employment market reflects both national trends and local economic conditions across different suburbs.
Recent data shows Melbourne's unemployment rate sits at or just under the national average of 4-5%, indicating a relatively healthy job market.
Outer affordable suburbs often experience slightly higher unemployment rates, sometimes 1-2 percentage points above the city average, due to distance from major employment centers.
Inner and middle-ring suburbs typically maintain unemployment rates at or below the Melbourne average, benefiting from proximity to CBD employment and diverse local job markets.
Growth suburbs with new infrastructure and business development often see improving employment prospects over time as economic activity increases.
What are the school ratings and student-to-teacher ratios nearby?
Melbourne's education landscape provides generally good schooling options across most suburbs, though quality varies.
Many Melbourne suburbs are serviced by schools rated average to above average, typically scoring 6-8 out of 10 on standardized rating systems.
Student-to-teacher ratios commonly range from 13-16:1 across Melbourne schools, which aligns with national standards for quality education delivery.
Established suburbs often have access to both excellent public schools and prestigious private institutions, while newer outer areas may have fewer school choices initially.
School proximity and quality significantly impact property values, with homes in catchments for highly-rated schools commanding price premiums of 10-20%.
What's the crime rate compared to other suburbs?
Melbourne's crime rates vary considerably across different suburbs, influencing both liveability and property investment decisions.
Melbourne's city-wide crime rate averages approximately 12-18 incidents per 1,000 residents annually, which is considered moderate for a major Australian city.
Affordable outer suburbs may experience higher crime rates, ranging from 20-40 incidents per 1,000 residents per year, often related to property crime and anti-social behavior.
Leafy inner suburbs and established middle-ring areas typically record lower crime rates, often below the city average, contributing to their appeal and premium pricing.
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What's the average cost of living including essentials?
Melbourne's cost of living varies across suburbs, with location significantly impacting daily expenses.
Weekly basics including groceries, transport, and utilities average $350-$450 per person across Melbourne, though this varies by lifestyle and consumption patterns.
Outer suburbs offer marginally cheaper living costs, particularly for parking, local services, and some grocery options compared to inner-city areas.
Transport costs can be substantially higher for outer suburban residents due to longer commuting distances and greater reliance on private vehicles.
Inner suburbs may have higher grocery and dining costs but often provide savings through reduced transport needs and access to competitive service providers.
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 property market in September 2025 offers distinct opportunities across different suburb types, from affordable outer areas delivering strong rental yields to established suburbs providing lifestyle benefits.
Successful property investment in Melbourne requires careful consideration of factors including price points, growth potential, rental returns, and personal lifestyle preferences to match individual investment goals and risk tolerance.