Home Price Index breakdown: Property values in VIC right now

October 2024

Melbourne outshone all the other capital cities to record the highest monthly growth rate in October. Dwelling prices surged 0.49% over the month, with the median price sitting at $793,000, according to PropTrack's latest Home Price Index. 

After six months of price falls, the trend has started to reverse in Melbourne, as buyers return to the market in force for the popular spring selling season.

However, prices are still 1.49% down from a year ago, and 4.16% below their March 2022 peak.

Price momentum has been weaker in Melbourne over the past four years, partly because of greater buyer choice and higher property taxes, explains REA Group senior economist, Eleanor Creagh.

“Additionally, construction activity has aligned more closely with population growth over the past decade,” she says.

This three-bedroom house for sale in Reservoir in Melbourne's north has an auction guide price of $850,000 - $890,000. Picture: realestate.com.au

Melbourne’s median dwelling price of $793,000 trails Sydney, at $1.108 million, Brisbane, at $862,000 and the ACT, $845,000.

“Melbourne ranked as the fourth most expensive capital in October, down from second place after recent underperformance,” Creagh says.

“It remains to be seen if October marks a turning point as buyers take advantage of Melbourne’s relative value.”

In regional Victoria, where the median is $573,000, prices have been slightly weaker, down 0.12% in October, and 1.51% over the year.