Melbourne is one of the strongest property markets in Australia. Buying a house in Melbourne offers the promise of good housing equity and a higher future resale price.

Besides the economic benefits, Melbourne has a diverse community and a vibrant society. This makes buying a house in Melbourne, within the Central Business District (CBD) or surrounding areas, appealing.

Before you take the leap, you’ll want to know how much to budget for a house in Melbourne.

So to help you make an informed decision, we’ll look at residential real estate median prices in Melbourne and give you a clear picture of what you can expect to pay.

How Much Does A House Cost In Melbourne?

According to a housing market update by CoreLogic, property prices in the Melbourne area have grown at a rate of over 8.1% over the past 25 years.

Even accounting for cyclical fluctuations, median house prices have risen significantly.

From a previous median property price of around $800,000, houses in Melbourne sold at a median price of $1,004,500 in the first quarter of 2021 (according to data from the Real Estate Institute of Victoria).

So how much does it cost to buy a two or three bedroom house in Melbourne?

Let’s break it down per area.

Median Prices For A Two-Four Bedroom House For Sale (Melbourne Metropolitan) (CBD)

The average price for houses with two bedrooms stood at $930,000 compared to $810,000 for a three bedroom house.

If you are in the market for four bedrooms, you can expect to pay a median price of $990,000.

Median Price Per Bedroom In The Metro Area

Median Prices For Houses By Area

Here’s an outlook of the residential real estate prices near Melbourne CBD using data from the Valuer-General Victoria property sale report.

Suburbs In Inner City Melbourne (Within 10 km Of the Melbourne CBD)

If you’re looking for a property in the inner suburbs of metropolitan Melbourne within a radius of 10kms of the Melbourne CBD, you can expect to pay a median price of $1,200,000.

However, there are some exceptions; prices in the more affluent suburbs like Toorak can be as much as $4,000,000.

On the other extreme, you can find lower prices with the Melton area pegged at a median price of just under $400,000.

Here’s one example of a two bedroom unit you can get in inner city Melbourne. This elegant and cosy house with one bathroom and a parking space for one car will cost you no more than $810,000.

Residential Real Estate Prices In Western Melbourne (Within A 20km Radius From Melbourne CBD)

For Melbourne's western suburbs, property prices averaged $741,413 (based on data published by the Victorian government).

More expensive homes on the west side were priced at $1,011,000.

At the other end of the scale, places like Deer Park had cheaper property for sale with unit and house prices at a median price of around $550,000.

For just over $1,000,000, you can lay your hands on an immaculate property like the one pictured above in the western suburbs . It comes with five bedrooms, three bathrooms and a parking space for two cars.

Prices For Property For Sale In Melbourne's Eastern Suburbs (20km Radius)

Property for sale in Melbourne's eastern suburbs will cost you an average of $1,582,111.

Real estate in areas like Balwyn tend to be more expensive than other suburbs on the west side, with prices at an average of over $2,000,000.

On the flip side, an apartment, unit or house in areas further out of the city like Oakleigh South range around $1,000,000.

Here’s one example of the kind of properties for sale you can find in Melbourne's eastern suburbs.

This modern, stylish house has four bedrooms and three bathrooms. It comes with exquisite finishings like Italian Marble benchtops and European oak floors.

House and Unit Prices In Melbourne (Outskirts)

Property prices are generally lower in Melbourne’s surrounding suburbs like Bayswater and Werribee, which are over 20kms away from the CBD, at an average of $600,000.

However, there are some exceptions to the rule depending on the location.

For instance, take a look at this prime seaside escape which overlooks Port Phillip Bay 43 km south of Melbourne’s CBD. Even though this house is on the outskirts, it’s asking price is a minimum of $1,800,000.

Breaking Into the Melbourne Property Market

Now that you have an idea of the prices, the next step is to find the right property for your budget.

So, what’s the easiest way to break into the Melbourne market?

Generally, you have three main options when it comes to buying a property.

Viewing Real Estate Listings For Sale In Melbourne Vic

You can get property listings and then do a property inspection to check how solid the structure is and conclude your purchase.

However, be aware that you are competing with many other buyers. If you can’t match the buying power of the other buyers, you’ll be sidelined and lose out.

Buying Your Apartment Or House At Auction

Another option for buying a house in the Melbourne area is bidding against other buyers at an auction.

However, in a growing property market with plenty of demand like Melbourne Vic, there’s a high chance that you’ll pay more than you’d budgeted if buyers try to outdo each other at auction.

Getting A Property From an Off-Market Platform

There’s usually a goldmine of properties that don’t make it 'on market'.

When you buy off-market, there’s less competition for properties which means there’s no pressure like there is at an auction to outbid other buyers.

To get off-market properties, you can contact an agent and discuss what you’re looking for. Agents usually have access to both pre-market and off-market properties.

You also have the option of using an off-market property site like Listing Loop. All you have to do is register for free, specify what you’re looking for and save your search parameters.

Listing Loop will let you know when there’s a property that’s a good match for your specifications, giving you a head start before other buyers.

We're here to help

We're always happy to help with all the dramas and stressors of house buying and selling in Melbourne,VIC.

And if you're particularly tired of house-hunting, we've even partnered with buyer advocates who can check out homes for you and organise sales assessments and negotiations.

Our off-market and pre-market marketplace gives you VIP access to properties so you can get in first.

Just sign up at Listing Loop or download our app.

Photo by Marg99ar