Melbourne’s median house rose to more than $1m in December 2025.
Greater Melbourne’s median house price has surged to $1.012m in 12 months, adding $55,400 to homeowners’ pockets.
PropTrack’s latest Home Price Index, released today, shows the city’s typical house value remained higher than Adelaide, Hobart and Darwin’s sub-$1m figures in December.
But the Victorian capital’s 4.7 per cent growth trailed last behind the other Australian capitals’ more impressive percentage increases across 2025.
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Melbourne landed below the second last-placed ACT’s 5.6 per cent improvement and top-ranked Perth’s 16.9 per cent rise.
Real Estate Institute of Victoria chief executive Toby Balazs said broader economic challenges faced by the state had likely contributed to its real estate performance.
The PropTrack report stated Aussie home prices were expected to climb in 2026 but growth would potentially slow with no interest rate cuts expected in the near future.
In December, a survey by financial comparison website Finder of 35 experts and economists found one in three anticipated at least one rate rise in the next year.
Victoria’s overall median dwelling price, including houses, units and apartments, hit $854,000 in December, the PropTrack report shows. Picture: NewsWire/Andrew Henshaw.
Melbourne’s overall dwelling prices rose more than 16 per cent in the past five years, the lowest of all Australia’s states and territories. Perth and Brisbane led the nation, with median values increasing more than 97 per cent in the time frame.
“If there is a rate increase, I would expect that would make what is still a relatively challenging market, in terms of affordability, even more difficult for buyers who are wanting to get into the market,” Mr Balazs said.
However, lower growth in median house prices made purchasing easier for many people, he noted.
And Melbourne remains an attractive proposition for investors seeking good capital growth in the next few years.
“The counter or the challenge to that is some of the challenges of holding property in Melbourne as an investor, in terms of taxes and regulations,” Mr Balazs said.
This included the Premier Jacinta Allan-led government’s 2024 land tax increases and the sheer weight of managing its rental standards’ crackdown across the past 18 months, he added.
Across the past five years, regional Victoria’s overall dwelling price achieved a 33.5 per cent increase, hitting $586,000 in December 2025.
The REIV is calling on the state government to provide greater incentives to buy and hold rental properties in Victoria to help address the state’s rental crisis.
Regional Victorian houses hit a median $618,000 value in December, rising $42,100 since the same month in 2024.
Melbourne units grew $24,200 to reach a $630,000 typical price and regional Victorian units jumped $27,600, to $440,000.
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