Melbourne Autumn 2026 Property Market Report

Melbourne’s residential property market is showing clear signs of recovery, with strengthening sales activity, rising prices and ongoing rental demand. The Autumn 2026 Melbourne Property Report highlights a market supported by strong population growth, improving buyer confidence and constrained housing supply.

For buyers, investors and homeowners, Melbourne real estate continues to present opportunities across both houses and apartments, underpinned by long-term fundamentals and renewed market momentum.

Sales activity strengthens across Melbourne

Residential sales across Melbourne increased significantly over the past year, rising 12% to 100,543 transactions, well above the five‑year average.

Sales momentum has continued into the latest quarter, with 28,210 transactions recorded, reflecting improved buyer confidence and increased market activity.

Homes are also selling more quickly, with average days on market falling to 31 days, indicating strong demand for well‑priced Melbourne property.

Auction activity remains a key indicator of market health, with clearance rates at 58.2%, pointing to balanced conditions between buyers and sellers.

Supply constraints continue to impact housing availability

Housing supply remains tight across Melbourne. While new listings increased 15.5% year-on-year, total listings declined 12.6%, limiting available stock.

Population growth has rebounded strongly, reaching 2.7% in 2024, placing additional pressure on housing supply and infrastructure.

At the same time, new housing construction remains constrained, with construction delivery down 11.8%, while building costs have risen 5.0%, contributing to ongoing supply challenges.

Melbourne property prices continue to rise

Melbourne property prices have strengthened, increasing 6.5% annually, with the median residential price reaching approximately $878,100.

Quarterly growth of 1.7% indicates steady upward momentum across both houses and apartments.

Looking ahead, McGrath Research forecasts price growth of 4% in 2026, followed by a further 3% increase in 2027, supporting a return to sustainable growth in the Melbourne housing market.

Rental market remains tight with continued growth

Melbourne’s rental market remains undersupplied, with vacancy rates at 2.4%, below the balanced benchmark of 3%.

Median weekly rents are now approximately $580, increasing 2.7% year-on-year, with continued upward pressure expected.

Rents are forecast to rise 5% in 2026, supported by population growth, limited rental stock and ongoing tenant demand.

Gross rental yields sit at 3.85%, offering stable returns for investors targeting Melbourne investment property opportunities.

Economic fundamentals supporting demand

Melbourne benefits from strong underlying drivers, including population growth of 2.7%, supporting long-term housing demand.

Interest rates remain at 4.10%, influencing affordability and borrowing capacity, while unemployment sits at 4.9%, slightly above the national average.

Together, these factors, combined with infrastructure investment and migration trends, continue to underpin demand for Melbourne residential property.

Outlook for Melbourne property in 2026

With rising sales activity, constrained supply and steady price and rental growth, Melbourne’s property market is well positioned for continued recovery in 2026.

For buyers and investors, Melbourne offers a balanced opportunity of value, long-term growth and market stability, reinforcing its position as one of Australia’s key capital city real estate markets.

Explore the full Melbourne Autumn 2026 Property Report for detailed insights into sales activity, pricing and rental performance across Melbourne’s local markets.