Melbourne
Data led market context, rankings and research insights prepared by High Income Property.
Melbourne market snapshot
Key property, rental and demographic indicators from the report, compiled by the HIP buyers agent research team.
Melbourne PPI Ranking
SNR
Two years of sales activity: 14 sales over 12 months.
Thin market, pressure firming.
House sales activity is too thin for a high conviction call. The Thermometer is the more useful short term signal, and house prices are up 43% over the past year off a very small number of sales.
Sales per quarter
November 2024 to August 2026
Market pressure right now
Market pressure is firmly in the lower band. The Thermometer is reading 14, with heavy inventory at 14.1 months on hand and extended turnover at a 116 day median days on market. The PPI cannot give a high conviction direction call because house sales are too thin, so the Thermometer is the more useful short term signal. Prices are up 43% over the past year.
Pressure trajectory
Palash DaveFounder and buyers agent, High Income Property
The suburb looks good. Does the property?
A suburb report tells you where the market sits. It cannot tell you whether a specific apartment carries high owners corporation fees, sits in a building with defect or combustible cladding history, falls inside a heritage or flood overlay, faces a new tower going up next door, or is priced above comparable sales in the same building. Those details move the result more than the suburb averages do.
HIP prepares a detailed property report on the exact property you are considering, covering:
- Title, plan of subdivision and owners corporation records, plus overlays and easements
- Street-level comparable sales and realistic rent, not suburb medians
- Surrounding land use, zoning and nearby development applications
- Build contract, inclusions and settlement risk for new or off the plan purchases
Palash Dave reviews every report personally as the buyers agent Victoria investors deal with directly at HIP.
PPI and Thermometer explained
Where the market is heading next
The Price Predictor Index classifies where each market sits in its price cycle using sales activity over multiple quarters.
Rising Recovery Consistent Plateau Inconsistent Declining SNR
A 0 to 100 read on market pressure
The Thermometer blends five inputs: sold above asking, inventory, vacancy, days on market and quarterly price growth.
0 to 24
25 to 39
40 to 54
55 to 67
68+
Want the full PPI and Thermometer methodology for Melbourne?
See exactly how the Price Predictor Index and the Hotspotting Thermometer are calculated, and how Melbourne scores against each input.
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Melbourne misses the EMPIRICAL test
6 of 8 tests passed (1 pending). The report assesses nine long term market drivers for the house market, and all must pass to clear the EMPIRICAL bar.
Economy ✓
Melbourne has a broad, well diversified industry base. The largest single sector accounts for only 18% of jobs.
Market size ✕
Only 14 house sales in the past 12 months, below the report’s 40 sale minimum. Thin volumes make headline numbers move sharply.
Population ✓
City of Melbourne LGA population is 149,615, well above the 20,000 minimum.
Infrastructure ✓
The report counts more than $239.7 billion of committed projects within 35 km across 1,156 projects, led by the $15.0 billion Melbourne Metro Rail Tunnel and the Suburban Rail Loop.
Rental market ✕
House vacancy of 12.3% is above the 3% benchmark and gross yield of 2.6% is below the 3.5% minimum.
Increasing employment ✓
The nearby pipeline includes roughly $17.8 billion in health and $18.1 billion in education projects.
Capital growth ✓
Prices are up 43% over 12 months. The report confirms capital growth from price data despite the SNR classification.
Acceleration ⏳
Quarterly volumes are too thin to assess acceleration reliably. This test is pending.
Low risk ✓
The report states house prices across the LGA fell no more than 21% peak to trough over 17 years of available history.
Want the full EMPIRICAL formula results for Melbourne?
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Melbourne market context
Location overview
Melbourne (postcode 3000) is the central business district of Victoria’s capital and sits within the City of Melbourne local government area. High density living dominates, with 85.3% of residents in apartment style dwellings. Investors weighing CBD apartments against middle ring houses often work with a buyers agent Victoria specialist to compare Melbourne with nearby inner city suburbs.
Real estate snapshot
The median house price is $580,000, with a 2.58% rental yield, 12.26% vacancy and 116 average days on market. Units have a $460,000 median, a 7.15% rental yield, 2.15% vacancy and 45 average days on market.
Demand vs supply
Houses recorded 14 sales over 12 months with 14.08 months inventory, 43% 12 month growth and a 23% five year decline. Units recorded 1,994 sales with 4.75 months inventory, an 8% 12 month fall and a 3% five year decline.
PPI insights
Houses are classified SNR because low transaction volume and high inventory prevent a reliable trend call, and the 43% annual rise against a five year decline signals volatility rather than sustained momentum. Units are classified Consistent, supported by 1,994 sales, a 45 day average time to sale and 2.15% vacancy.
Population and demographics
Postcode population is 43,084. City of Melbourne LGA population is 149,615. Home ownership is 30.2%, making this a predominantly rental market, and the leading employment sectors are professional, scientific and technical services (17.9%), accommodation and food services (13.1%) and health care (10.5%).
Risk and balance
The report flags a thin house market, weak house rental demand with 12.26% vacancy and a 2.58% yield, and questions whether the 43% house price rise can be sustained. Unit depth, a 7.15% unit yield and tight 2.15% unit vacancy are the stronger side of this market.
Demographic indicators
Top industries
18%
13%
11%
9%
Major projects
| Project | Value | Status | Project details |
|---|---|---|---|
| Melbourne Metro Rail Tunnel | $15B | Construction | Rail tunnel expansion and new train stations |
| Eastern Freeway, Burke Road to Tram Road | $5.7B | Construction | Freeway upgrade (45 km) and noise walls |
| Victoria’s Big Housing Build | $5.3B | Design & Documentation | Approx. 16,000 homes including 9,300 social housing |
| North East Link, Eastern Freeway secondary package | $2.2B | Pre Construction | Road interchange and access path |
| Queen Victoria Market Southern Site, Gurrowa Place | $1.7B | Design & Documentation | 1,263 build to rent apartments and 1,100 bed student accommodation |
| Queen Victoria Market Precinct Renewal | $750M | Design & Documentation | Redevelopment of the existing market site |
| Apartments, student accommodation, office and shops (67 storey) | $495.7M | Pre Construction | 693 apartments and 900 student beds |
| The Games Village Project Masterplan | $400M | Design & Documentation | Approx. 1,345 apartments and 140 bed aged care facility |
| The Greenline | $315.6M | Design & Documentation | Linear green trail and shared paths |
| 435 Bourke | $300M | Construction | Office building (approx. 60,000 sq m) |
| Atlas Melbourne | $200M | Pre Construction | 877 apartments and 2 level arcade |
| The Alfred Hospital infrastructure and wards upgrade | $174.5M | Concept | Hospital upgrade and 6 wards |
| Melbourne Grammar School for Humanities | $60.7M | Construction | Education centre |
This table is a web summary of projects listed in the supplied report and does not replace the report’s full project schedule.
Want the full Major projects schedule for Melbourne?
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Book a call with a suburb expert
Free 30 minute strategy call. No obligation.
House and unit metrics
| PPI classification | SNR |
| Inventory | 14.08 mo |
| Sales, 12 months | |
| Days on market | 116 |
| 12 month change | 43% |
| 5 year avg growth | -23% |
| Vacancy rate | |
| Median price | $580,000 |
| Median rent | $650 |
| Rental yield | 2.58% |
| PPI classification | Consistent |
| Inventory | 4.75 mo |
| Sales, 12 months | |
| Days on market | 45 |
| 12 month change | -8% |
| 5 year avg growth | -3% |
| Vacancy rate | |
| Median price | $460,000 |
| Median rent | $670 |
| Rental yield | 7.15% |
Median sale price snapshot
| Property type | 12 month median | Today’s estimate |
|---|---|---|
| 2 Bed House | $610,000 | $946,167 |
| 3 Bed House | $1,282,500 | $1,639,019 |
| 4 Bed House | $6,425,000 | $1,901,111 |
| 2 Bed Unit | $532,500 | $561,872 |
| 3 Bed Unit | $1,047,500 | $903,006 |
| 4 Bed Unit | Unavailable | Unavailable |
Research first, recommend second
Who we are
High Income Property is a buyers agency for investors, working with individual investors across Australia on new house and land packages and established property.
Each suburb presented to a client starts with market evidence including price and rent history, vacancy, supply, population and infrastructure research.
Where a new build is the right fit, HIP works with established builders on full turnkey fixed price packages.
As the investor’s buyers agent, HIP continues support through property selection, due diligence, contract review with the client’s solicitor, construction updates and property manager introductions.
How HIP is paid
High Income Property receives commissions from developers and builders on house and land packages it introduces.
For established property purchases, HIP charges a buyers agency fee agreed in writing before work begins.
Palash Dave, Founder and Director, High Income Property. Investment property strategist with a banking background, Sydney based and working with clients Australia wide.
Property options in Melbourne
These are indicative examples at September 2026 based on the figures in the report, not quotes, valuations or guarantees.
| Option | What it is | Indicative price band | Indicative rent | Who it tends to suit |
|---|---|---|---|---|
| Established apartment in Melbourne CBD | A one or two bedroom apartment in an established CBD building with a sound owners corporation record and maintenance fund. | Unit median about $460,000. Two bedroom units about $532,500. | About $670 per week unit median, around 7.2% gross yield per the report | Investors seeking rent from settlement, deep resale liquidity and the stronger side of this market. |
| New or off the plan apartment | A new apartment in one of the CBD residential or build to rent towers in the report’s project pipeline. | Varies by project. Test the price against completed comparable sales before committing. | Assess against the $670 per week unit median | Investors placing weight on depreciation and low early maintenance, who accept settlement valuation and supply risk. |
| Established house in Melbourne CBD | A rare inner city house or terrace. Only 14 house sales were recorded in 12 months. | About $610,000 for 2 bed to $1,282,500 for 3 bed (12 month medians) | About $650 per week, around 2.6% gross yield | Long term investors focused on land value who can carry a low yield and a thin resale market. |
| Established property in a neighbouring suburb | Comparison options in Carlton, North Melbourne, Southbank or Docklands. | Priced on current comparable sales at the time of shortlisting | Assessed per property | Investors who want inner city access with a different price point, property type or yield profile. |
What HIP would check next
Due diligence points
- Owners corporation: fees, maintenance fund, minutes and any building defect or combustible cladding history.
- Rules and building use: owners corporation rules, including short stay letting and pet rules, and any serviced or student apartment restrictions.
- Overlays: VicPlan checks for heritage and flood overlays where relevant.
- Victorian land tax: investor thresholds and current rates.
- Stamp duty and timing: duty treatment and settlement valuation risk on new or off the plan apartments.
- Supply and timing: weigh the large apartment, build to rent and student accommodation pipeline in postcode 3000 against rent and population fundamentals, not short term momentum alone.
What happens if you go ahead
- Strategy call: budget, borrowing, timeframe and portfolio goal.
- Shortlist: two or three specific properties or packages with price, rent, yield and holding cost.
- Due diligence and contracts: title, overlays, inclusions and contract validity reviewed with your solicitor and broker.
- Through to keys: settlement or construction updates, then property management introduction.
A free 30 minute strategy call
The report explains what Melbourne looks like today. The strategy call is where HIP, a buyers agent Victoria investors can speak with directly, works out whether the location fits the investor’s budget, borrowing capacity and timeframe.
Book your strategy callPhone: (02) 8007 4001
Email: support@highincomeproperty.com.au
Suite 121, Building A, 20 Lexington Drive, Bella Vista NSW 2153
General information and research disclaimer
This suburb report is for general information and educational purposes. It does not take into account individual objectives, financial situation, borrowing capacity, tax position or needs and is not personal financial, investment, credit, tax or legal advice.
Research pages use data from sources listed in the report including Hotspotting Research Hub, PropTrack, Australian Bureau of Statistics and Hubexo. Figures can change after the report date.
Indicative property prices, package prices and rent figures are not quotes, valuations, forecasts or guarantees. Property values can rise or fall and past performance is not a reliable indicator of future results.
High Income Property receives commissions from developers and builders on house and land packages it introduces and charges a buyers agency fee for established property services, disclosed in writing before engagement.
© 2026 High Income Property Pty Ltd. Prepared 25 September 2026.