The median house in Melbourne has risen to more than $1m by December 2025.
Greater Melbourne’s median house price rose to $1.012m in 12 months, adding $55,400 to homeowners’ pockets.
PropTrack’s latest Home Price Index, released today, shows the city’s average house price remained higher than Adelaide, Hobart and Darwin’s figures of under $1m in December.
But the Victorian capital’s growth of 4.7 per cent followed on the back of impressive percentage increases in other Australian capitals by 2025.
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Melbourne fell below the ACT’s second-placed improvement of 5.6 per cent and Perth’s top rise of 16.9 per cent.
The CEO of the Real Estate Institute of Victoria, Toby Balazs, said the broader economic challenges the state is facing are likely to impact its housing performance.
A PropTrack report said Aussie house prices were expected to rise in 2026 but growth would 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 expected at least one rate hike in the next year.
![REAL ESTATE GENERICS NORTH MELBOURNE](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 1280 720"%3E%3C/svg%3E)
The price of Victoria’s total residential property, including houses, units and apartments, reached $854,000 in December, the PropTrack report shows. Photo: NewsWire/Andrew Henshaw.
Melbourne’s overall house prices have increased by more than 16 per cent over the past five years, the lowest of all Australian states and territories. Perth and Brisbane led the nation, with average values rising more than 97 per cent during the period.
“If there is an increase in the rate, I would expect that it would make what are still difficult challenges, in terms of affordability, even more difficult for buyers who want to enter the market,” said Mr. Balazs.
However, low growth in median home prices made buying easier for many people, he noted.
And Melbourne remains a good proposition for investors looking for good capital growth over the next few years.
“The counter or the challenge of that is one of the challenges of holding a property in Melbourne as an investor, in terms of taxation and regulations,” said Mr Balazs.
This includes Prime Minister Jacinta Allan’s proposed land tax hike in 2024 and the weight of managing the decline in rental rates over the past 18 months, he added.
Over the past five years, the average price of land in regional Victoria has seen an increase of 33.5 per cent, reaching $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 tackle the state’s rental crisis.
Regional Victorian homes averaged $618,000 in December, up $42,100 from the same month in 2024.
Melbourne units increased by $24,200 to reach an average price of $630,000 and regional Victorian units jumped $27,600, to $440,000.
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