Home Price Index breakdown: Property values in VIC right now

December 2024

Melbourne recorded one of the sharpest price drops of the capitals in December.

Monthly growth was down 0.53% to reach a median price of $780,000. Over the year, prices dipped 2.49%.

Melbourne has been Australia’s weakest performing capital city for home price growth since March 2020, according to REA Group senior economist Anne Flaherty.

“Prices are up just 13.9% compared to the combined capital city average of 40.2%,” she said.

“Melbourne is now the fifth most expensive capital city, having recently been surpassed by Adelaide. Perth is likewise on track to overtake Melbourne’s home prices in 2025. This will make Melbourne the third most affordable city in Australia, behind only Hobart and Darwin.”

This three-bedroom house for sale in Noble Park in Melbourne's south-east has an online auction guide price of $600,000 - $660,000. Picture: realestate.com.au

The state government’s focus on building more homes has added more stock for buyers to choose from, taking some steam out of the market.

“Driving Melbourne’s underperformance, Victoria has been relatively more successful at building more homes compared to the other states,” Ms Flaherty said.

“It also continues to see a strong investor exodus due to significant tax deterrents, decreasing demand and driving up supply.”

In regional Victoria, home values grew 0.03% over December, but over the year dropped 2.08% to reach a median of $571,000.

November 2024

Melbourne is the only capital city to have recorded a fall in monthly price growth in November, according to PropTrack's latest Home Price Index. Prices were slightly down 0.07% over the month, with the median home price sitting at $792,000, making the city the fourth most affordable of the nation’s capitals.

Over the year, Melbourne is also the only capital to have seen price growth decline. Prices have fallen for seven of the past eight months, bringing them 1.63% below November 2023 levels, and 4.38% below their March 2022 peak.

“Melbourne ranked as the fifth-most expensive capital in November, down from fourth place in October,” explained REA Group senior economist Eleanor Creagh.

This three-bedroom house for sale in Port Melbourne in Melbourne's inner city has an auction guide price of $1,550,000 - $1,650,000. Picture: realestate.com.au

“Price momentum has been weaker in Melbourne over the past four years in part due to greater buyer choice and higher property taxes.

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

Regional Victoria had the third highest median home value of the nation’s regions, with prices sitting at $570,000, trailing regional Queensland at $709,000, and regional NSW, $732,000.

The median price dipped 0.05% in November, with regional Victoria the only state region besides regional NT to record a fall. Annually, regional Victoria was the only region to record a drop in price growth, falling 2.09%

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.