How much is a house in Melbourne these days? In September 2023, the median house price in metropolitan Melbourne was approximately $933,281 for a 2-bedroom house. This figure reflects the dynamic nature of the market and highlights the variety in pricing based on different areas and property types.
Melbourne is a bustling city with a thriving real estate market. For those looking to buy a house in Melbourne, it’s important to know how much you can expect to pay. The cost of a house in Melbourne can vary greatly depending on a number of factors, including location, size, and condition.
Current Market Analysis of Melbourne Property
Market Trends in Melbourne House Prices
According to recent data from Corelogic, Melbourne’s housing market has experienced growth in recent months. In October 2023, Melbourne house prices rose by 0.5%, following a 0.4% increase in September 2023.
“Melbourne dwelling prices have accelerated, with prices increasing by 0.28% month-on-month, bringing prices up by 0.64% from their level a year ago.”
The median house price in Melbourne has increased by 1.2% quarterly, with annual declines returning to a positive range at 1.2%.
As mentioned, the median house price in Melbourne in September 2023 was around $933,000, reflecting a modest increase of 0.3% for that month. This increase contributed to an overall positive quarterly movement of 1.2%
A Look at Melbourne Suburbs House Prices
When it comes to the Melbourne housing market, location plays a significant role in determining the price of a home. In the affluent suburb of Toorak, the median house price is approximately $5.19 million, as per data from Metropole.
It is important to note that the median house price in Melbourne varies greatly depending on the suburb. For example, in East Melbourne, the median house price is about $3.65 million, while in Brighton, it’s around $3.24 million. These figures, provided by Metropole, reflect the diversity and range of the Melbourne housing market.
3 Types of Melbourne Properties and Their Prices
Melbourne offers a variety of properties to suit different budgets and lifestyles. The most common types of properties available in Melbourne are apartments, townhouses, and standalone houses. Each of these property types has its own unique features, advantages, and price range.
1. Standalone Houses
Standalone houses are the most sought-after properties in Melbourne, offering privacy, space, and a sense of ownership. These properties come in a range of sizes, styles, and locations, from modern mansions in the suburbs to heritage-listed cottages in the inner city.
The average price range for a standalone house in Melbourne is between $500,000 and $2 million, depending on the location, size, and features of the property. Buyers should expect to pay more for houses in popular suburbs with good amenities, schools, and transport links.
Apartments are a popular choice for buyers looking for a low-maintenance lifestyle in the heart of the city. They offer convenience, security, and access to a range of amenities, such as gyms, pools, and communal gardens.
The average price range for an apartment in Melbourne is between $300,000 and $1.5 million, depending on the location, size, and features of the property. Buyers should expect to pay more for apartments with views, balconies, and higher floors.
The average price range for a townhouse in Melbourne is between $600,000 and $1.5 million, depending on the location, size, and features of the property. Buyers should expect to pay more for townhouses in popular suburbs with good amenities, schools, and transport links.
“When buying a property in Melbourne, buyers should consider various factors, such as pre-approval, homebuyer grants, stamp duty, insurance, utilities, solicitor, deposit, settlement, and mortgage broker.”
Temporary residents should also be aware of the rules and regulations around buying property in Australia.
Overall, Melbourne offers a diverse range of properties to suit different budgets and lifestyles. Buyers should do their research and seek professional advice to navigate the complexities of the property market.
5 Factors Influencing Property Prices in Melbourne
The prices of houses in Melbourne are influenced by various factors. Understanding these factors can help homebuyers make informed decisions when purchasing a property. Some of the factors that affect house prices in Melbourne are:
The location of a property is a crucial factor in determining its price. Houses located in prime areas, such as the city center, beachside suburbs, and those near good schools, shopping centers, and public transportation, are generally more expensive than those located in less desirable areas.
The state of the economy can significantly influence house prices. Factors such as inflation, interest rates, and unemployment rates can impact the housing market. When the economy is booming, house prices tend to rise, and when it is in a recession, they tend to fall.
According to Maz Real Estate, a slump in economic activity could prompt a decrease in property values.
3. Property Type
The type of property can also affect its price. For instance, apartments and townhouses are generally more affordable than standalone houses.
The size, age, and condition of the property can also impact its price. Older properties that require renovation may be cheaper than newer properties that are move-in ready.
4. Market Dynamics
The dynamics of the housing market can also influence house prices. When demand for housing is high, and supply is low, prices tend to rise. Conversely, when supply exceeds demand, prices tend to fall.
“Melbourne’s median house price notched up another +0.3 per cent in September 2023, with quarterly movement now sitting at +1.2 per cent, while annual declines have returned to a positive range at +1.2 per cent.”
5. Comparison of Prices in Different Melbourne Suburbs
As mentioned earlier, house prices in Melbourne vary depending on the location. For instance, the median house price in the inner-city suburb of Carlton is around $1.5 million, while in the outer suburb of Cranbourne, it is around $630,000.
Homebuyers should research different suburbs to find the best value for their money.
In conclusion, understanding the factors that influence house prices in Melbourne is essential for homebuyers. By considering these factors, they can make informed decisions when purchasing a property and find the best value for their money.
Future Outlook and Investment Potential
According to recent predictions, the Melbourne housing market is expected to continue to grow in the coming years. While there has been a slight dip in housing values in recent times, experts predict that this is only a temporary setback. The market is expected to recover and continue to grow shortly.
“Some analysts predict that Melbourne’s median house price could face a decrease by up to 23% by the end of 2023, potentially bringing the median house value to around $673,750. This contrasts with earlier predictions of the median house price surpassing $1 million by June 2025.”
One of the key factors driving the Melbourne housing market is population growth. As more people move to the city, demand for housing is expected to continue to rise. This is particularly true in growth areas like Clyde North and Kalkallo, where land and house prices are expected to more than double in less than a decade.
For potential buyers and investors, it is important to keep an eye on these growth areas and other up-and-coming suburbs. By investing in these areas now, buyers and investors can take advantage of the predicted growth and potentially see significant returns on their investment in the coming years.
Of course, as with any investment, there are risks to consider. It is important to do your research and carefully consider your options before making a purchase.
Working with a trusted real estate agent or investment advisor can also help navigate the complexities of the Melbourne housing market.
Overall, the future outlook for the Melbourne housing market is positive. With continued population growth and predicted price increases, there are plenty of opportunities for buyers and investors to find success in this market.
Suggested reading: Complement your current read with our expert analysis on Melbourne’s property trends: What is happening to property prices in Melbourne?
FAQs on ‘How Much is a House in Melbourne?’
1. How much income is required to buy a house in Melbourne?
According to Metropole, buyers need an annual income of $178,300 to afford the median house price of about $1,023,000 in Melbourne. This is a significant increase from the previous year, requiring a $34,000 rise in earnings.
2. Are houses in Melbourne expensive?
Yes, houses in Melbourne are quite expensive. As per SQM Research, asking prices in Melbourne remain well above $1 million for all houses, despite some recent declines.
3. Why are Melbourne houses so expensive?
House prices in Australia, including Melbourne, are high relative to income. Factors contributing to this include tax deductions for property investment, state government bonuses for first home buyers, and challenges in generating new home supply.
4. What is the trend in Melbourne property prices as of early 2023?
Melbourne property prices have declined through 10 of the past 12 months, culminating in a -7.1% cumulative decline. However, CoreLogic’s daily home value index indicates a rise in house prices in the first few weeks of March 2023.
5. Should I buy a house now or wait until 2024 in Australia?
It’s suggested that home buyers in larger cities like Melbourne could wait till 2024, as prices might further soften or at least not increase significantly. However, it’s important to be cautious about waiting too long, as interest rate cuts could quickly lead to a market rebound.