Are houses in Melbourne cheaper than in Sydney? In 2023, the answer leans towards yes. Melbourne’s property market, with a median house value of approximately $776,716, presents more affordable options compared to Sydney’s median house value of around $1,110,660 as per data according to ABC News.
This article explores the reasons behind these price differences, examining factors like median house prices, cost of living, and lifestyle in both cities.
We’ll compare Melbourne and Sydney’s property markets, highlighting the affordability and advantages of living in Melbourne. Understanding these dynamics helps potential home buyers and investors make informed decisions about where to buy a home.
Melbourne vs. Sydney: A Comparison of House Prices
Melbourne and Sydney represent two distinct scenarios in Australia’s property market. And its important to notice the specific values for Sydney and Melbourne’s median house prices vary across different sources.
As of September 2023, According to the Real Estate Institute of Victoria (REIV), it stands almost unchanged at $933,500, down 0.2% from the June quarter.
If you are planning to buy a 3-bedroom house and if you specifically want to know the average cost of a 3-bedroom house in Melbourne, you can refer to What is the average cost of a 3-bedroom house in Melbourne?
Regarding Sydney’s median house price as of September 2023, CoreLogic’s Home Value Index released in August 2023 lists the median house price in Sydney as $1,333,985.
This disparity in median house prices reflects broader market conditions and economic factors. Melbourne, often lauded as one of the world’s most liveable cities, combines cultural vibrancy with affordability.
In contrast, Sydney, as Australia’s largest city, commands higher prices due to its international appeal and bustling city life.
Factors Affecting House Prices in Melbourne and Sydney
Several key factors influence the property prices in Melbourne and Sydney. The cost of living in Melbourne, generally lower than in Sydney, contributes to Melbourne’s relative affordability. This aspect is elaborated in detail in the article Is it expensive to live in Melbourne?.
Melbourne’s housing market has shown signs of stabilisation, with a decrease in prices by about 6.2% to approximately $1,023,000 as per recent data from SMH.
Meanwhile, Sydney’s market appears to be on an upward trend, with its median property price currently at around $1,590,932 according to Property Update.
“Melbourne’s growing population and its status as a cultural hub add to its appeal for home buyers and investors. Sydney, on the other hand, benefits from its position as Australia’s economic powerhouse and a major tourist destination, factors that contributing to its higher property prices.”
Both cities have their unique draws, but Melbourne’s more approachable property market makes it an attractive option for many Australians.
Side by Side Comparison of Melbourne vs Sydney Property Prices
|Suburb (City)||Distance from CBD||Median House Price||Median Unit Price|
|Werribee||40 min west of CBD||$615,000||$420,000|
|North Melbourne||~3 km from CBD||$1,300,000||$579,000|
|Lalor||17 km north of CBD||$707,500||$540,500|
|Point Cook||26.2 km from CBD||$760,000||$497,500|
|Mill Park||22.2 km from CBD||$785,000||$510,000|
|Berwick||41 km south-east of CBD||$900,000||$663,000|
|Banksia||16.3 km from CBD||$1,490,000||–|
|Parramatta||~20 km from CBD||$1,425,000||$600,000|
|Marrickville||~7 km south-west of CBD||$1,875,000||$782,500|
|Moorebank||35 min from CBD||$1,220,000||$705,000|
|North Richmond||67 km north-west of CBD||$1,000,000||$660,000|
Sources: Data sourced from Savings.com.au
For a broader view of available properties, consider looking at houses for sale in Melbourne on Soho.com.au.
In comparing the median house prices of suburbs in Melbourne and Sydney, we observe a clear trend towards greater affordability in Melbourne. This aligns with the broader pattern of Melbourne offering more affordable housing options than Sydney.
The house prices in both cities vary significantly depending on each suburb’s proximity to the city center and the availability of amenities. Suburbs that are close to beaches, central business districts, or rich in cultural amenities generally command higher property values.
Additionally, both Melbourne and Sydney suburbs exhibit potential for growth, which is likely to be influenced by factors such as local developments, infrastructure improvements, and demographic shifts. This analysis highlights the dynamic nature of the property market in these two major Australian cities.
Impact of Amenities and Lifestyle on Melbourne and Sydney House Prices
The lifestyle and amenities offered by Melbourne and Sydney play a crucial role in their property market dynamics. Melbourne, known for its cultural diversity, extensive parklands, and vibrant arts scene, appeals to those seeking a balanced urban lifestyle.
Its title as one of the world’s most liveable cities is reflected in its property market. The city’s median house price, while significant, remains much more affordable compared to Sydney’s. This affordability, combined with Melbourne’s high standard of living, makes it a highly desirable place to live in Australia.
Sydney, known as the Harbour City, offers iconic landmarks, beautiful beaches, and a bustling city centre. These features make Sydney not just a popular tourist destination but also a sought-after place to live.
However, this desirability comes at a cost, with higher housing prices and living expenses. Sydney’s median house price, sitting at around $1,590,932 as of 2023, reflects the high demand for housing in the city.
Future Market Predictions for Melbourne and Sydney
Looking ahead, the property markets in Melbourne and Sydney are expected to follow different trajectories. According to property market analysts, Melbourne’s market is showing signs of stabilization and is becoming increasingly attractive to home buyers and investors, thanks to its affordability and quality of life.
The city’s property market, while experiencing a slight dip, is predicted to remain stable and potentially see gradual growth.
In contrast, Sydney’s property market is on track to reach new record highs. The city’s strong economic foundations and status as a global city continue to drive demand for housing.
“However, this also means Sydney’s property market might become less accessible to average home buyers, particularly in the inner city areas.”
In conclusion, while both Melbourne and Sydney offer unique advantages, Melbourne’s property market is indeed cheaper and more accessible than Sydney’s. Melbourne combines cultural richness with a more affordable cost of living, making it an attractive option for those looking to buy a home in Australia.
Sydney, while offering its own distinct appeal, comes with higher property costs. For home buyers and investors, Melbourne presents a compelling choice, balancing affordability with a high standard of living.
Suggested reading: If you’re finding this article useful, you’ll definitely appreciate our in-depth resource which answers the question: How much is a house in Melbourne?
FAQs on ‘Are houses cheaper in Melbourne than Sydney?’
1. Is it better to invest in property in Sydney or Melbourne?
According to data from Property Update, Melbourne’s property market is currently Australia’s fastest-growing and most promising. Over the last 40 years, the median house price in Melbourne has increased by an annual rate of 7.9%, and the median unit/apartment price by 7.73% per annum.
This growth is compared to Sydney, where 97.8% of sellers made a profit in the March Quarter, indicating both markets are strong, but Melbourne shows a more consistent long-term growth trend.
2. Is Melbourne friendlier than Sydney?
A study cited by The Guardian suggests that people in Melbourne are perceived as friendlier than those in Sydney. This perception contributes to a more welcoming environment for newcomers, making it less likely for them to feel like tourists.
Melbourne’s diverse culture also fosters a unique and eclectic lifestyle, differentiating it from other Australian cities.
3. Are people moving from Sydney to Melbourne, and if so, why?
Net internal migration data shows a significant trend of people moving from Sydney to Melbourne. This shift is attributed to Melbourne’s more affordable housing prices and better overall cost of living.
The trend suggests a growing preference for Melbourne over Sydney among those relocating within Australia.
4. Is Melbourne colder than Sydney?
Yes, Melbourne is generally colder than Sydney. During the winter season, Sydney’s average daily maximum temperature is about 3°C warmer than that of Melbourne. Additionally, Sydney tends to have milder temperature extremes in summer, indicating a warmer climate overall compared to Melbourne