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
Melbourne is a highly regulated property market with strong legal protections, but it is also an intense auction-driven culture where foreigners routinely make expensive mistakes under time pressure.
We constantly update this blog post to reflect the latest rules, scams, and market conditions affecting foreign buyers in Melbourne.
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 risky is buying property in Melbourne as a foreigner in 2026?
Can foreigners legally own properties in Melbourne in 2026?
As of early 2026, foreigners can legally purchase property in Melbourne, but what they can buy is heavily restricted by Australia's foreign investment framework administered by FIRB and the ATO.
The main restriction right now is a temporary ban preventing foreign persons from purchasing established dwellings (existing homes), which means most foreigners are limited to buying new dwellings or vacant land for development during this period.
When direct ownership is restricted, some foreigners use Australian company structures or purchase through a spouse who holds permanent residency, though these arrangements require careful legal advice because FIRB looks at "foreign person" status broadly, including foreign-controlled entities.
Temporary residents may still apply for approval to buy one established home to live in, but this exception interacts with the current ban window, so you must check your exact visa status and the rules in effect at the time of your purchase.
The bottom line is that Melbourne property ownership is accessible to foreigners, but only through specific pathways that require government approval and compliance with the current restrictions.
What buyer rights do foreigners actually have in Melbourne in 2026?
As of early 2026, foreigners who purchase property legally in Melbourne have essentially the same ownership rights as Australian citizens, including full title registration, contract enforcement through courts, and access to dispute resolution tribunals.
If a seller breaches a contract in Melbourne, foreign buyers can enforce their rights through the Victorian Civil and Administrative Tribunal (VCAT) or the courts, seeking remedies like specific performance (forcing the sale to complete) or damages for losses incurred.
However, the most common right foreigners mistakenly assume they have is the right to buy any property they want without approval, when in reality FIRB approval is required for most purchases, and buying without it can lead to forced disposal and significant penalties.
Victoria also requires sellers to provide a Section 32 vendor statement before you sign, which discloses key information about the property, but this does not replace the need for your own independent verification of title, planning restrictions, and ownership.
How strong is contract enforcement in Melbourne right now?
Contract enforcement for real estate transactions in Melbourne is very strong by global standards, with Australia consistently ranking in the top tier of independent rule-of-law indices and having mature court systems that routinely handle property disputes.
Compared to many countries where foreigners commonly buy property, such as Thailand, Indonesia, or parts of Southern Europe, Melbourne offers significantly more reliable legal recourse if something goes wrong, with enforcement mechanisms that actually work in practice.
That said, the main weakness foreigners should understand is that strong enforcement helps you after a problem occurs, not before, and the real risk in Melbourne is getting caught in a scam or making a bad deal that is technically legal but financially painful.
By the way, we detail all the documents you need and what they mean in our property pack covering Melbourne.
Buying real estate in Melbourne can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Which scams target foreign buyers in Melbourne right now?
Are scams against foreigners common in Melbourne right now?
Scams targeting foreigners in Melbourne's property market are common enough that you should assume you will encounter at least one attempted manipulation if you actively search for property over several weeks.
The type of transaction most frequently targeted by scammers in Melbourne is the deposit and settlement payment process, where criminals intercept or impersonate conveyancers to redirect large bank transfers to fraudulent accounts.
The foreign buyer profile most commonly targeted is someone new to Australia, unfamiliar with local conveyancing procedures, and often under time pressure due to visa requirements or auction timelines in competitive suburbs like Hawthorn, Camberwell, or South Yarra.
The single biggest warning sign that a deal may be a scam in Melbourne is any unexpected request to change bank account details for deposit or settlement payments, especially when received by email close to a payment deadline.
What are the top three scams foreigners face in Melbourne right now?
The top three scams that foreigners most commonly face when buying property in Melbourne are payment redirection fraud (fake bank details sent by email), unlicensed "buyer's agents" or introducers who take fees then disappear, and underquoting on auction properties where the price guide has no relationship to the actual sale price.
The most common scam, payment redirection, typically unfolds when criminals hack or impersonate a real estate agent or conveyancer's email account, then send a message with "updated" bank details for your deposit or settlement funds, and once you transfer the money, it is gone within minutes.
To protect yourself from each of these three scams in Melbourne, you should verify all bank details by calling a phone number you source independently (not from the email), check that any agent or buyer's advocate is licensed on the Consumer Affairs Victoria public register before paying anything, and research recent comparable sales yourself rather than trusting the agent's price guide.
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 do I verify the seller and ownership in Melbourne without getting fooled?
How do I confirm the seller is the real owner in Melbourne?
The standard verification process to confirm the seller is the real owner in Melbourne is to have your conveyancer order a current title search from the Victorian Land Registry, which shows the registered proprietor at the time of the search.
The official document foreigners should check is the Certificate of Title obtained through Land Use Victoria or the LANDATA service, and you should never rely on a PDF the seller or agent emails you because it could be outdated or altered.
The most common trick fake sellers use to appear legitimate in Melbourne is sending a convincing-looking PDF of a title or other official document, which is why you must always verify through official channels rather than trusting attachments, and while outright fake seller scams are relatively rare compared to payment redirection, they do occur.
Where do I check liens or mortgages on a property in Melbourne?
The official registry where you check liens or mortgages on a property in Melbourne is the Victorian Land Registry, and you can obtain this information through a title search ordered via the LANDATA service run by Service Victoria.
When checking for liens in Melbourne, you should request a current title search that shows all registered interests including mortgages, caveats, and easements, and if something looks concerning, you can order copies of the actual registered instruments through the LANDATA instrument search.
The type of encumbrance most commonly missed by foreign buyers in Melbourne is a caveat lodged by a third party claiming an interest in the property, which can delay or block settlement if not discovered and resolved before you commit to the purchase.
It's one of the aspects we cover in our our pack about the real estate market in Melbourne.
How do I spot forged documents in Melbourne right now?
The most common type of forged document used in Melbourne property scams is not a traditional fake stamp or signature, but rather a digitally altered or fabricated email pretending to be from a legitimate conveyancer or agent with fraudulent bank account details, and this sometimes happens in the current market.
Specific red flags that indicate a document may be forged or a communication may be fraudulent in Melbourne include any request to change bank details late in the transaction, attachments claiming to be "official" title documents that were not sourced through official channels, and pressure to bypass your conveyancer or "just use theirs."
The official verification method you should use in Melbourne is to order documents directly from government sources like the Victorian Land Registry or Planning Victoria, and to verify any bank details or instructions by phone using a number you found independently, not from the suspicious email.
Get the full checklist for your due diligence in Melbourne
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What "grey-area" practices should I watch for in Melbourne?
What hidden costs surprise foreigners when buying a property in Melbourne?
The three most common hidden costs that foreigners overlook when buying property in Melbourne are the Foreign Purchaser Additional Duty (an extra 8% on top of normal stamp duty, which on a 1 million AUD property equals 80,000 AUD or roughly 50,000 USD / 47,000 EUR), conveyancing and legal fees (typically 1,500 to 3,000 AUD), and building and pest inspection costs (typically 500 to 800 AUD).
The hidden cost most often deliberately concealed or downplayed by agents in Melbourne is the true extent of owners corporation (strata) fees and any upcoming special levies for apartments and townhouses, and this sometimes happens when agents want to make a property appear more affordable than it actually is to own.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Melbourne.
Are "cash under the table" requests common in Melbourne right now?
Cash under the table requests in mainstream residential property transactions in Melbourne are not the dominant pattern, though foreigners can encounter them in adjacent situations like paying "introducer" fees to unlicensed buyer's agents or making informal deposits outside standard processes.
The typical reason given for requesting off-channel or undeclared payments in Melbourne is to "hold" a property before others can make an offer, or to pay for services that the person wants to keep off the books for tax reasons.
If you agree to an undeclared cash payment in Melbourne, you face serious legal risks including potential involvement in tax evasion (which can result in penalties and criminal charges), loss of legal recourse if the transaction goes wrong, and possible complications with your FIRB approval if the true purchase price is misrepresented.
Are side agreements used to bypass rules in Melbourne right now?
Side agreements used to bypass official rules in Melbourne property transactions do occur, particularly around informal promises about planning approvals, renovation allowances, or furniture inclusions that are kept separate from the main contract.
The most common type of side agreement used to circumvent regulations in Melbourne involves verbal promises about what the owners corporation will allow (such as renovations or short-term rentals) or informal understandings about items included in the sale that are not documented in the contract.
If a side agreement is discovered by authorities in Melbourne, foreigners face consequences ranging from the agreement being unenforceable (leaving you with no recourse) to potential penalties for FIRB compliance issues if the true nature of the transaction was misrepresented.
We made this infographic to show you how property prices in Australia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
Can I trust real estate agents in Melbourne in 2026?
Are real estate agents regulated in Melbourne in 2026?
As of early 2026, real estate agents in Melbourne are heavily regulated by Consumer Affairs Victoria, which sets professional conduct standards, investigates complaints, and maintains a public register of licensed agents.
A legitimate real estate agent in Melbourne should hold a current estate agent's licence issued by Consumer Affairs Victoria, and there are different licence categories depending on whether someone is a full agent or an agent's representative working under supervision.
Foreigners can verify whether an agent is properly licensed in Melbourne by searching the Consumer Affairs Victoria public register, which is free to use and shows the agent's licence status, any conditions, and disciplinary history.
Please note that we have a list of contacts for you in our property pack about Melbourne.
What agent fee percentage is normal in Melbourne in 2026?
As of early 2026, the normal selling agent commission in Melbourne typically falls around 2% of the sale price, though this varies by suburb, property value, and the services included in the package.
The typical range of agent fee percentages that covers most residential transactions in Melbourne is between 1.5% and 2.5%, with higher-value properties in suburbs like Toorak or Brighton sometimes negotiating lower percentage rates due to the larger absolute commission.
In Melbourne, the seller typically pays the agent's commission, not the buyer, though buyers who hire a separate buyer's advocate will pay that advocate directly, usually a flat fee or a percentage of the purchase price.
Get the full checklist for your due diligence in Melbourne
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What due diligence actually prevents disasters in Melbourne?
What structural inspection is standard in Melbourne right now?
The standard structural inspection process for property purchases in Melbourne is a pre-purchase building inspection, which many inspectors conduct in accordance with Australian Standard AS 4349.1 for residential pre-purchase inspections.
A qualified inspector in Melbourne should check specific structural elements including the foundation and footings, roof structure and covering, walls (internal and external), floors, ceilings, windows and doors, drainage, and any visible signs of movement, cracking, or moisture damage.
The type of professional qualified to perform structural inspections in Melbourne is a registered building practitioner, and you can verify their credentials using the Victorian Building Authority practitioner search to ensure they are properly licensed.
The most common structural issues that inspections reveal in Melbourne properties are moisture and water ingress (especially in older terraces and poorly renovated homes), cracking due to reactive clay soils common in many Melbourne suburbs, and unpermitted DIY renovations that may not meet building standards.
How do I confirm exact boundaries in Melbourne?
The standard process for confirming exact property boundaries in Melbourne is to have your conveyancer review the title and plan documents through the Victorian Land Registry, and for any concerns, to engage a licensed surveyor to physically mark the boundaries on site.
The official document that shows the legal boundaries of a property in Melbourne is the Plan of Subdivision or Title Plan registered with Land Use Victoria, which your conveyancer can obtain as part of the title search process.
The most common boundary dispute that affects foreign buyers in Melbourne involves shared driveways, fences that do not align with legal boundaries, or encroachments where structures (like garages or extensions) cross into neighboring land, which often only becomes apparent after purchase.
If you need physical verification of boundaries in Melbourne, you should hire a licensed land surveyor who can peg the boundaries on the ground and provide a survey report that you can rely on for any future disputes or building works.
What defects are commonly hidden in Melbourne right now?
The top three defects that sellers commonly conceal from buyers in Melbourne are moisture and water ingress problems (especially in bathrooms and around balconies), unpermitted renovations that do not comply with building codes, and pending owners corporation special levies in apartment buildings, and these issues are common enough that you should actively look for them.
The inspection technique that helps uncover hidden defects in Melbourne is a combination of a thorough building inspection by a registered practitioner (using moisture meters and thermal imaging where appropriate), reviewing owners corporation records for apartments, and running a Planning Property Report to check for overlays like heritage or flooding that could limit what you can do with the property.
We have made this infographic to give you a quick and clear snapshot of the property market in Australia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
What insider lessons do foreigners share after buying in Melbourne?
What do foreigners say they did wrong in Melbourne right now?
The most common mistake foreigners say they made when buying property in Melbourne is trusting the agent's price guide at auction without doing their own research on comparable sales, leading them to either overpay significantly or waste time on properties they could never afford.
The top three regrets foreigners most frequently mention after buying in Melbourne are not getting a thorough building inspection (especially for older properties with hidden moisture issues), not understanding the auction process and bidding emotionally, and not verifying bank details independently before transferring deposit or settlement funds.
The single piece of advice experienced foreign buyers most often give to newcomers in Melbourne is to slow down any time someone tries to speed you up, because the pressure tactics common in Melbourne's auction culture are designed to benefit sellers, not buyers.
The mistake that foreigners say cost them the most money or caused the most stress in Melbourne is typically related to FIRB compliance, either buying a property they were not eligible to purchase without realizing it, or facing unexpected foreign purchaser stamp duty that added tens of thousands of dollars to their costs.
What do locals do differently when buying in Melbourne right now?
The key difference in how locals approach buying property compared to foreigners in Melbourne is that locals treat agents as seller-aligned from the start and do their own pricing research using recent auction results and sales data, rather than anchoring on price guides that are often optimistic in auction-heavy suburbs like Richmond, Northcote, or Brunswick.
The verification step locals routinely take that foreigners often skip in Melbourne is running their own title search and planning property report before emotionally committing to a property, so they know about easements, heritage overlays, or flooding zones before they fall in love with a home they cannot renovate.
The local knowledge advantage that helps Melbourne residents get better deals is their understanding of which suburbs have soft auction clearance rates at different times of year, which agents have reputations for underquoting, and which buildings (for apartments) have known issues with cladding, defects, or difficult owners corporations that are not obvious to outsiders.
Don't buy the wrong property, in the wrong area of Melbourne
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
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 |
|---|---|---|
| FIRB Guidance Note 1 | Official Australian Government guidance on foreign residential property purchases. | We used it to explain what property types foreigners can buy and the approval pathways. We also used it to clarify the "one home to live in" exception for temporary residents. |
| Australian Taxation Office | Official government page describing the current foreign purchase restrictions. | We used it to confirm the 2026 temporary ban on established dwellings. We also used it to highlight common compliance mistakes foreigners make. |
| State Revenue Office Victoria | Victoria's tax authority explaining extra duties for foreign buyers. | We used it to calculate the foreign purchaser additional duty costs. We also used it to flag the most common "surprise cost" for foreigners. |
| Land Use Victoria | Victorian Government's official land registry information hub. | We used it to explain what a title search is and how to verify ownership. We also used it to structure the ownership verification steps. |
| Consumer Affairs Victoria | Victorian consumer regulator's official buyer checklist. | We used it as the backbone for the due diligence section. We also used it to keep advice practical and low cognitive load. |
| ACCC Targeting Scams Report | Australia's national scams analysis based on official reporting channels. | We used it to ground the scam prevalence discussion in documented patterns. We also used it to identify payment redirection as the top threat. |
| World Justice Project Rule of Law Index | Respected international index measuring rule of law across countries. | We used it to contextualize Australia's contract enforcement reliability. We also used it to compare Melbourne with other foreign buyer destinations. |
| Consumer Affairs Victoria Public Register | Official lookup to verify whether an agent is licensed in Victoria. | We used it to provide a concrete trust filter for verifying agents. We also used it to explain how foreigners can avoid unlicensed introducers. |
| Planning Victoria | Official Victorian Government tool for zoning and overlay information. | We used it to show how to spot "silent deal killers" like heritage overlays. We also used it to give a simple DIY check before deeper searches. |
| Victorian Building Authority | Official register to check whether building practitioners are registered. | We used it to explain how to verify building inspector credentials. We also used it to connect defect risk to who you hire. |
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.
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