Authored by the expert who managed and guided the team behind the Australia Property Pack
Yes, the analysis of Melbourne's property market is included in our pack
If you're thinking about buying a house in Melbourne, you probably have one big question: how much does it actually cost?
This guide gives you clear, up-to-date numbers on Melbourne house prices, from budget-friendly outer suburbs to premium inner-city neighborhoods.
We constantly update this blog post to reflect the latest market data, so the figures you see here are as fresh as possible.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Melbourne.
How much do houses cost in Melbourne as of 2026?
What's the median and average house price in Melbourne as of 2026?
As of early 2026, the median house price in Melbourne sits at around A$1.11 million (approximately US$720,000 or €665,000), while the average house price is estimated at roughly A$1.25 million (about US$810,000 or €750,000).
The typical price range that covers roughly 80% of house sales in Melbourne stretches from A$650,000 to A$2 million (US$420,000 to US$1.3 million, or €390,000 to €1.2 million).
The gap between Melbourne's median and average house price exists because a small number of very expensive properties in suburbs like Toorak and Brighton pull the average up, which tells you the market has a significant premium segment alongside more affordable stock.
At the median price of A$1.11 million in Melbourne, you can typically expect a 3-bedroom house on a standard lot in a middle-ring suburb with a 30 to 45 minute commute to the CBD, often an older home that may need some updating.
What's the cheapest livable house budget in Melbourne as of 2026?
As of early 2026, the minimum budget for a livable house in Melbourne is around A$450,000 to A$550,000 (approximately US$290,000 to US$360,000, or €270,000 to €330,000), with A$500,000 being a practical starting point.
At this entry-level price point in Melbourne, "livable" typically means a modest but functional home that doesn't require major structural work, though it may have dated interiors and basic finishes rather than modern renovations.
These cheapest livable houses in Melbourne are usually found in outer suburbs like Melton (where the median sits around A$520,000), Werribee, Craigieburn, and parts of the outer west and north where new housing estates meet older established areas.
Wondering what you can get? We cover all the buying opportunities at different budget levels in Melbourne here.
How much do 2 and 3-bedroom houses cost in Melbourne as of 2026?
As of early 2026, 2-bedroom houses in Melbourne typically sell for around A$700,000 to A$900,000 (US$455,000 to US$585,000, or €420,000 to €540,000), while 3-bedroom houses generally range from A$850,000 to A$1.2 million (US$550,000 to US$780,000, or €510,000 to €720,000).
The realistic price range for a 2-bedroom house in Melbourne stretches from about A$600,000 in affordable outer areas like Tarneit to over A$2 million in premium suburbs like Brighton, where even smaller homes command high prices due to location.
For a 3-bedroom house in Melbourne, you're looking at a realistic range from around A$600,000 in outer growth corridors to A$2.5 million or more in sought-after bayside and inner-east suburbs where family homes are in constant demand.
The typical price premium when moving from a 2-bedroom to a 3-bedroom house in Melbourne is around 15% to 25%, though this gap narrows in outer suburbs where both configurations are more affordable and widens significantly in premium areas.
How much do 4-bedroom houses cost in Melbourne as of 2026?
As of early 2026, a 4-bedroom house in Melbourne typically costs between A$1.1 million and A$1.8 million (US$715,000 to US$1.17 million, or €660,000 to €1.08 million), though this varies enormously depending on location and land size.
For a 5-bedroom house in Melbourne, the realistic price range runs from about A$1.5 million to A$2.8 million (US$975,000 to US$1.82 million, or €900,000 to €1.68 million), with outer family suburbs at the lower end and established inner areas commanding the higher prices.
A 6-bedroom house in Melbourne typically starts around A$2 million and can exceed A$4 million (US$1.3 million to US$2.6 million, or €1.2 million to €2.4 million), as these larger properties are often found in prestige suburbs or on substantial land parcels with development potential.
Please note that we give much more detailed data in our pack about the property market in Melbourne.
How much do new-build houses cost in Melbourne as of 2026?
As of early 2026, a new-build house in Melbourne typically costs around A$1.2 million to A$1.5 million (US$780,000 to US$975,000, or €720,000 to €900,000) in established areas, though prices can be lower in outer growth corridors where new estates are more common.
The typical percentage premium that new-build houses carry compared to older resale houses in Melbourne is around 8% to 15%, driven by elevated construction costs and buyer demand for turn-key properties that don't require immediate renovation work.
How much do houses with land cost in Melbourne as of 2026?
As of early 2026, a house with significant land in Melbourne typically costs 10% to 25% more than a similar house on a standard lot, with prices varying widely based on location, and properties with subdivision potential commanding even higher premiums.
In Melbourne, a "house with land" typically refers to a block of around 600 to 800 square metres or larger, compared to standard lots of 400 to 500 square metres in newer estates and even smaller parcels in inner suburbs where land is scarce.
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Where are houses cheapest and most expensive in Melbourne as of 2026?
Which neighborhoods have the lowest house prices in Melbourne as of 2026?
As of early 2026, the Melbourne neighborhoods with the lowest house prices include Melton, Werribee, Craigieburn, Broadmeadows, and parts of Sunshine and Albion in the outer west and north.
In these cheapest Melbourne neighborhoods, typical house prices range from around A$500,000 to A$700,000 (US$325,000 to US$455,000, or €300,000 to €420,000), with Melton's median sitting at approximately A$520,000.
These neighborhoods have the lowest house prices in Melbourne primarily because of their distance from the CBD (often 35 to 50 kilometres), which means longer commutes, and because they are newer growth areas with less established infrastructure and amenities compared to inner suburbs.
Which neighborhoods have the highest house prices in Melbourne as of 2026?
As of early 2026, the top three Melbourne neighborhoods with the highest house prices are Toorak (median around A$5.5 million), Brighton (median around A$3.25 million), and a cluster including Kew, Malvern, and Canterbury (medians typically A$2.5 million to A$4 million).
In these most expensive Melbourne neighborhoods, typical house prices range from A$2.5 million to well over A$6 million (US$1.6 million to US$4 million, or €1.5 million to €3.6 million), with trophy homes often exceeding A$10 million.
These neighborhoods command the highest house prices in Melbourne because they combine heritage streetscapes with large established lots, proximity to elite private schools, and a concentration of high-end amenities that have made them prestigious addresses for over a century.
The typical buyer in these premium Melbourne neighborhoods is either an established local family upgrading from a nearby suburb, a successful business owner, or an international buyer seeking proximity to Melbourne's best schools and lifestyle precincts.
How much do houses cost near the city center in Melbourne as of 2026?
As of early 2026, a house near Melbourne's city center (including areas like Carlton, Fitzroy, Collingwood, Richmond, and South Yarra) typically costs between A$1.4 million and A$3 million (US$910,000 to US$1.95 million, or €840,000 to €1.8 million), as detached houses are scarce close to the CBD.
Houses near major transit hubs in Melbourne, particularly those within walking distance of train stations on premium lines, typically sell for around 5% to 12% more than similar houses further from public transport, reflecting strong buyer demand for easy CBD access.
Houses near top-rated government schools in Melbourne, including Melbourne High School (South Yarra), Mac.Robertson Girls' High School (Albert Park), Glen Waverley Secondary College, and Balwyn High School, typically cost 8% to 20% more than comparable houses outside these sought-after school zones.
Houses in expat-popular areas of Melbourne, including Brighton, Hampton, Camberwell, Hawthorn, Kew, and Glen Waverley, typically range from A$1.5 million to A$3.5 million (US$975,000 to US$2.27 million, or €900,000 to €2.1 million), as these suburbs offer good schools, lifestyle amenities, and strong resale liquidity.
We actually have an updated expat guide for Melbourne here.
How much do houses cost in the suburbs in Melbourne as of 2026?
As of early 2026, a house in Melbourne's middle-ring suburbs (20 to 45 minute commute) typically costs A$900,000 to A$1.6 million (US$585,000 to US$1.04 million, or €540,000 to €960,000), while outer-ring suburbs typically range from A$500,000 to A$900,000 (US$325,000 to US$585,000, or €300,000 to €540,000).
The typical price difference between suburban houses and city-center houses in Melbourne is around 30% to 50%, meaning you could pay A$1 million in a middle-ring suburb for a house that would cost A$1.5 million or more in an inner suburb with similar features.
The most popular suburbs for house buyers in Melbourne include Tarneit and Truganina in the outer west for affordability, Glen Waverley and Box Hill in the east for schools and amenities, and Essendon and Preston in the north for lifestyle and proximity to the city.
What areas in Melbourne are improving and still affordable as of 2026?
As of early 2026, the top improving yet still affordable areas for house buyers in Melbourne include Tarneit, Truganina, and Werribee in the outer west, Craigieburn and Roxburgh Park in the outer north, and selected pockets of Sunshine and Albion where infrastructure is improving.
Current typical house prices in these improving Melbourne areas range from around A$520,000 to A$700,000 (US$340,000 to US$455,000, or €310,000 to €420,000), still well below the Melbourne-wide median of A$1.11 million.
The main sign of improvement driving buyer interest in these areas is tightening days on market combined with stronger price growth in the lower quartile, which indicates first-home buyers and investors are competing more actively as infrastructure like train line extensions and new shopping centers come online.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Melbourne.
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.
What extra costs should I budget for a house in Melbourne right now?
What are typical buyer closing costs for houses in Melbourne right now?
For house buyers in Melbourne, typical total closing costs run around 3% to 6% of the purchase price for Australian citizens and permanent residents, but 11% to 15% for foreign buyers because of the additional 8% Foreign Purchaser Additional Duty.
The main closing cost categories in Melbourne include stamp duty (the largest portion, calculated on the purchase price), legal and conveyancing fees of around A$1,500 to A$3,500 (US$975 to US$2,275, or €900 to €2,100), and searches, registrations, and adjustments of around A$300 to A$1,000.
The single largest closing cost category for house buyers in Melbourne is stamp duty (land transfer duty), which is calculated on a sliding scale and can easily reach A$50,000 or more on a A$1 million purchase, making it essential to budget for this expense early in your planning.
We cover all these costs and what are the strategies to minimize them in our property pack about Melbourne.
How much are property taxes on houses in Melbourne right now?
For houses in Melbourne, annual property tax in the form of council rates typically runs from A$1,500 to A$4,000 per year (US$975 to US$2,600, or €900 to €2,400), though it can be higher in premium councils and for high-value homes.
Council rates in Melbourne are calculated based on your property's capital improved value, multiplied by a rate set annually by your local council, which means rates vary significantly depending on which municipality your house is in and how much your property is worth.
If you want to go into more details, we also have a page with all the property taxes and fees in Melbourne.
How much is home insurance for a house in Melbourne right now?
Home insurance for a house in Melbourne typically costs around A$1,500 to A$3,000 per year (US$975 to US$1,950, or €900 to €1,800), though premiums can be higher for homes with high rebuild costs, coastal exposure, or in flood or bushfire risk postcodes.
The main factors that affect home insurance premiums for houses in Melbourne include the estimated rebuild cost of your home, your postcode's risk profile for flooding or storms, the age and construction type of the property, your claims history, and the excess you choose.
What are typical utility costs for a house in Melbourne right now?
Total monthly utility costs for a house in Melbourne typically run around A$350 to A$500 per month (US$230 to US$325, or €210 to €300), covering electricity, water, gas, and internet, though this varies based on household size and usage habits.
The breakdown of main utility costs for houses in Melbourne includes electricity at around A$130 to A$180 per month, water and sewerage at A$75 to A$110 per month, gas (if connected) at A$60 to A$125 per month, and internet at around A$70 to A$100 per month.
What are common hidden costs when buying a house in Melbourne right now?
Common hidden costs that Melbourne house buyers often overlook can total A$5,000 to A$15,000 (US$3,250 to US$9,750, or €3,000 to €9,000) in the first year, covering immediate maintenance, necessary upgrades, and unexpected repairs that weren't obvious during inspections.
Typical inspection fees for buyers purchasing a house in Melbourne include building and pest inspections at around A$500 to A$900 (US$325 to US$585, or €300 to €540), with optional add-ons like plumbing, electrical, or drainage inspections adding another A$200 to A$600 each.
Other common hidden costs beyond inspections when buying a house in Melbourne include immediate maintenance for issues like roof repairs or rising damp (common in older inner suburbs), heating and cooling upgrades given Melbourne's variable climate, and termite or pest treatment if problems are found post-purchase.
The hidden cost that tends to surprise first-time house buyers the most in Melbourne is the expense of heating and cooling upgrades, because many older homes have poor insulation and outdated systems, and Melbourne's winters make inadequate heating genuinely uncomfortable and expensive to run.
You will find here the list of classic mistakes people make when buying a property in Melbourne.
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What do locals and expats say about the market in Melbourne as of 2026?
Do people think houses are overpriced in Melbourne as of 2026?
As of early 2026, sentiment among Melbourne locals and expats is mixed, with many feeling that house prices are high relative to incomes but also recognizing that the market is actively transacting rather than stalling, which suggests prices aren't completely disconnected from what buyers are willing to pay.
Houses in Melbourne typically stay on the market for around 33 days before selling, which indicates a reasonably active market where well-priced properties find buyers relatively quickly, though overpriced listings can sit for much longer.
The main reason locals and expats cite for feeling Melbourne house prices are high is the gap between median house prices (over A$1.1 million) and median household incomes, which makes saving for a deposit and servicing a mortgage genuinely difficult for many first-time buyers without family help.
Compared to one or two years ago, current sentiment on Melbourne house prices is notably more accepting of the "new normal," as the recovery from the 2022-2023 rate-rise dip has restored confidence and buyers have adjusted their expectations to the higher price environment.
You'll find our latest property market analysis about Melbourne here.
Are prices still rising or cooling in Melbourne as of 2026?
As of early 2026, house prices in Melbourne are rising, with the market described as being in a "decisive recovery" phase after the interest rate-driven softness of 2022-2023, though the pace of growth varies significantly by suburb and price segment.
The year-over-year house price change in Melbourne is approximately 7.4% for 2025, with the December quarter alone showing 2.9% growth, bringing the median house price to A$1.11 million according to Domain's latest data.
Looking ahead, experts and locals expect Melbourne house prices to continue rising moderately over the next 6 to 12 months, supported by strong population growth and limited new housing supply, though any further interest rate changes could affect the pace of growth.
Finally, please note that we have covered property price trends and forecasts for Melbourne here.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Australia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Melbourne, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| ABC News / Domain | Major public broadcaster citing Domain's published quarterly research data. | We used it to anchor Melbourne's median house price at A$1.11 million for December 2025. This served as our primary headline figure for early 2026 pricing. |
| NAB Property Market Updates | Major Australian bank publishing repeatable snapshots with clear data sources. | We used it to cross-check Melbourne house values and pull days-on-market data. It served as a second independent reality check alongside Domain. |
| Cotality / CoreLogic | Widely used, methodologically transparent housing data provider in Australia. | We used it to triangulate overall price levels and trend direction for Melbourne. It helped us track the "market pulse" between quarterly reports. |
| Valuer-General Victoria | Official Victorian government source based on lodged sales information. | We used it to validate suburb-level medians and guide how we interpret local patterns. It serves as a backstop when private-sector data looks incomplete. |
| realestate.com.au (REA Group) | Major established property portal with consistent suburb snapshot templates. | We used suburb profiles for Toorak, Brighton, Melton, and Tarneit as price anchors. These grounded our bedroom-specific and neighborhood price ranges. |
| State Revenue Office Victoria | Official government calculator and rules for Victorian property taxes. | We used it to frame buyer closing costs including stamp duty and foreign buyer surcharges. It helped us build practical budget ranges for different buyer types. |
| Essential Services Commission | Victorian energy and water regulator with official benchmark pricing. | We used it to anchor defensible electricity and water budget estimates for 2025-26. This kept our utility cost figures realistic rather than guesswork. |
| City of Melbourne | Official local government explanation of council rates calculation. | We used it to explain how council rates work as the main property tax for owner-occupiers. It helped clarify why rates vary by suburb and property value. |
| Housing Industry Association | Peak body for Australia's residential building industry with market data. | We used it to support our new-build pricing section and premium estimates. It helped us understand construction market conditions affecting new home prices. |
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