According to CoreLogic’s most recent monthly house price report, Melbourne was the cheapest major capital city property market, with a median price of $772,561 as of February 28, 2025.
Source: CoreLogic
Melbourne’s relative affordability comes after a value gain of only 8.2% over the last five years, compared to a 38.9% increase nationally.
Source: CoreLogic
The following chart, derived mostly from quarterly Domain house price data, shows that Melbourne’s median house price was only 83% of the other combined capital cities. This represented the cheapest relative valuation since 2006.
The relative affordability of Melbourne has garnered increasing interest from interstate buyers seeking more affordable housing.
Domain reported “a veritable flood of Sydneysiders shifting south to take advantage of the greater affordability of the Melbourne property market”.
“The median price of Melbourne houses is now $1,039,460, according to Domain, compared to $1,645,444 for a house in Sydney. Units are similarly much cheaper in the south, with a median of $577,405 compared to Sydney’s $812,863”.
“The number of people coming from Sydney to Melbourne is ever-increasing”, says Jacob Caine, the president of the Real Estate Institute of Victoria. “It’s about prices and a lower cost of living here, but it’s also about amenity and lifestyle”.
“These moves are heavily driven by the relative affordability of Melbourne prices”, Buyers’ agent Emily Wallace, the founder of Wallace Advocates, said.
“You can generally afford to buy something pretty decent within 10km of the city centre in Melbourne, and we think that more and more people will join this trend”.
CoreLogic’s daily dwelling values index shows that Melbourne has recorded a strong price rebound.
Over the past 28 days, Melbourne dwelling values have grown by 0.6%. This is the strongest rate of growth since September 2023.
The value hunters are circling Melbourne property.
