How much do houses cost in Melbourne? For many property hopefuls attempting to get their foot on the proverbial ladder, the question of Melbourne’s home value is an important one to answer. After all, with lockdowns and the COVID-19 pandemic as a whole making it difficult for those in the industry to provide informed insights regarding future fluctuations in markets, the consensus of how much houses in Melbourne cost and how much they are going to cost in the near future is quite vague and uncertain.

With that in mind, we are now at an interesting point in the property investment landscape. After all, Melbourne is, at the time of writing, the most locked-down city in the world in regards to the number of days spent in lockdown. This has shifted economic circumstances within the city, and in turn, the property market. So, what is the market looking like now, and how much do houses cost in Melbourne compared to the rest of Australia?

Melbourne House Prices Fared Better Than Anticipated

Despite initial concerns that the pandemic would cause a decrease in property value due to the economic downturn, Melbourne has managed to maintain its place as the second most expensive city in Australia. Beaten out only by Sydney for property prices, which soared to a staggering $1.4 million within the June quarter, Melbourne still stands at a respectable $1.02 million average within the same period.

This has meant great things for property owners and investors, despite murmurs that the Australian housing boom may be cooling, based on a decrease in home loans and new properties built across the country. On a national level, despite concerns, Melbourne property prices have remained quite stable through one of the biggest upheavals in recent history, so it will be interesting to see how things transpire once the state of Victoria begins to open back up.

Where are the Cheapest Places to Buy in Melbourne?

For those that are disappointed by the consistently high prices within Melbourne, fret not, for there are still areas in which a home can be purchased for significantly less than the average. With houses averaging at around $650,000-$700,000, the Western and North-Western suburbs of Melbourne are the best places for property buyers to look. Houses in these areas are more than $300k below the average, and as we’ve seen, housing prices can drastically increase in quite short timeframes.

According to data from the City of Melbourne’s Median House Prices by Transfer Year from 2000 – 2016, the 2010 median price for a house/townhouse in Melbourne was $782,000.00. Over the past 11 years, this has gone up dramatically, with even the most affordable areas in Melbourne now comparable to the 2010 median. So, if you are considering a purchase in a more affordable suburb, it seems now may be the time to do it.

How Are Other Cities Faring in Terms of House Prices?

Once again, as with Melbourne, the rest of Australia have fared surprisingly well in these difficult circumstances. Whilst most have retained a comparable value to previous estimates, one unexpected shift has been Canberra. With a whopping increase in the median price of 10.4%, Canberra is ready to knock Melbourne to 3rd place on the pricing boards. As it stands now, Canberra’s median house price is around $1.015 million, mere thousands of dollars away from Melbourne’s $1.02 million.

With Sydney and Melbourne still at the top in terms of house prices and Perth as the most affordable of the big cities, much of what we’ve discussed likely seems quite familiar. However, this in itself is quite astounding in many ways. Despite the upheaval of many industries and the economy being in an uncertain state, the Australian housing market still continues on with very little in the way of practical change. However, time continues on, and how current circumstances will impact future changes is still yet to be seen.Want to stay up-to-date with news and articles regarding all facets of the Melbourne property market and property management? Explore the My Rental blog today. We provide regular updates, insights and helpful tips for property owners, investors, and anyone that’s interested in learning more about the world of Melbourne housing.