Melbourne’s housing market is back on top, recording the fastest price growth in Australia for the first time since 2020. According to PropTrack’s latest Home Price Index, Melbourne’s median house price rose by $5500 (0.68%) in February, reaching $892,000, while units climbed by $4000 (0.63%) to $576,000.
While values remain below 2024 levels, experts say Melbourne’s undervalued market and recent interest rate cut are driving renewed buyer confidence. Increased competition is already evident, with more bidders at auctions and strong demand for well-located properties, particularly in the $600,000–$800,000 range.
Property experts predict further growth as buyer activity increases and additional rate cuts boost borrowing power. With demand rising, now may be the ideal time to secure a Melbourne property before competition intensifies.
