Tables of the Day - Melbourne growth story emerges
After quite a roller coaster ride, house prices are up across all capitals since the first RBA rate in February. Melbourne has seen the lowest growth of the capitals over the last 5 years. Topically, this is due to net losses in migration (which is rebounding), the highest land taxes, a hangovers from the long covid lockdowns, etc. But it is also because we build the most. Interestingly, investors have been increasing their share of the market in Melbourne in the past 12 months.
Melbourne in particular has won back into favour with the banks and industry forecasters. The tables below show Westpac, ANZ and KPMG saying that Melb house prices will rise 10% to 6.6% in 2026, ahead of all other capital cities.
Domain September Quarter 2025, House Price Report
More housing data, this time from Domain, shows detached housing prices continue their march upwards with most capitals at over $1m median, while Sydney has $2m in its sights at $1.75m with commentators predicting it will hit $2m by 2027. Melbourne is at its highest level in 3.5 years at $1.083m and annual price growth of 6.2%, just behind Sydney’s 6.3%.
Units is where affordability lies, even in Sydney. Melbourne continues to build the most with around double the number of apartments approved than Brisbane. This is reflected in the annual growth rates of 4.7% vs 14.1%, respectively.
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