Melbourne’s housing market has experienced a prolonged downturn.
According to CoreLogic, Melbourne home values have declined by 6.4% since March 2022.
Melbourne home values have also only risen by 8.4% since the onset of the COVID pandemic in March 2020, versus a 33.6% increase across the combined capital cities.
Separate data from PropTrack shows that Melbourne dwelling values have fallen by 5.5% since March 2022. This has reduced Melbourne’s median dwelling value to $780,000 as of 31 December 2024.
As shown above, Melbourne currently has the second-lowest median dwelling value out of the five major capital cities, just ahead of Perth at $773,000.
The difference is that Perth is experiencing the fastest growth in home prices in the nation.
In the month of December 2024, CoreLogic recorded Perth value growth of 0.7%, whereas PropTrack recorded monthly value growth for Perth of 0.4%.
Most analysts expect that Perth will lead the nation with double-digit dwelling value growth in 2025.
Therefore, with Melbourne’s values falling and Perth’s rising, it is likely that Perth’s median dwelling value will overtake Melbourne’s by the end of January or in February.
As a result, Melbourne will soon become Australia’s cheapest major capital city housing market.
