Melbourne was voted as the “World’s Most Livable City”, 6 years consecutively, according to theEconomist Intelligence Unit. This year in 2018, it was ranked second. By 2030, its anticipated the population will exceed Sydney as the most populated city of Australia.
There are a few reasons why the Melbourne property market is expensive, and perhaps deservedly so.
These are the reasons why it seems expensive
- Housing prices in cities (both locally and overseas) holding a population in excess of 1 million people virtually always retain more expensive property. This is with the exception of Hong Kong and Singapore.
- Melbourne provides quite large area zones of living. This spreads nearly 10,000 km2 (3,800 sq miles), which comprises the broader metropolitan areas. The outer suburbs are often managed with poor and/or limited infrastructure. This includes both serviced roads and public transport. Melbournians have increasingly chosen to spend a higher proportion of their income on buying real estate so they can reduce the time commuting to work everyday.
- Melbournians tend to live in larger houses or apartments compared to people in most other countries. (at this stage we don’t have a comparison report on this).
- Even though we see great activity in new property development or redevelopment of existing dwellings, the population growth continues to demand more housing requirements. If the demand remains, the prices do to…
City views from Xavier College in Kew. Credit image: https/xavier.vic.edu.au
There are many strategies that can help your affordability to buy, please feel free to contact us.
Want to read more?
Where are the most popular suburbs for young professionals? please click the link HERE:
The most populated suburbs of Melbourne please click the link HERE:
If you’d like to learn more about property investment, please don’t hesitate to contact us.
www.crestproperty.net.au
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circ*mstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more please contact us.We welcome the opportunity to assist you.
February 2019
FAQs
Supply and Demand Imbalance
Melbourne's housing prices are soaring due to more people wanting homes than there are homes available. The city's population growth, low borrowing costs, and a thriving economy are causing a spike in housing demand.
Are houses in Melbourne expensive? ›
The median price for a house in Greater Melbourne is currently $942,779, according to CoreLogic data. That's a 4.4 per cent increase on the previous year and a 30 per cent jump on prices seen in 2019. The cheapest suburb to purchase a house is Melton, in Melbourne's west, where the median house price is $473,074.
What are the factors affecting the property prices in Melbourne? ›
Oversupply can lead to price reductions if demand doesn't match, while undersupply can create upward pressure on prices. A market with limited supply, even when demand is modest, can contribute to a stable property market. This was seen during the initial six to eight months of 2023 in Melbourne.
Is Melbourne overpriced? ›
As it stands according to Mercer's 2023 Cost of Living City Ranking, Melbourne is the 71st most expensive city in the world, trailing slightly behind Sydney at 56th to be Australia's second most expensive city.
What is the most expensive housing in Melbourne? ›
Last year crypto magnate Edward Craven purchased the so-called Ghost House at 29-31 St Georges Road, Toorak of $80M, breaking the record for the most expensive property ever transacted. The house has been incomplete and uninhabited since 1991.
Is Melbourne in a housing crisis? ›
We have a significant shortage of affordable housing. City of Melbourne is in the midst of an affordable housing crisis.
What is the average housing price in Melbourne? ›
Median prices in Australia
| City | Median house price | Median unit price |
|---|
| Melbourne | $918,350 | $554,306 |
| Sydney | $1,168,806 | $744,672 |
| Darwin | $494,281 | $262,562 |
| Canberra | $779,050 | $441,055 |
4 more rowsMedian price snapshot
Median property prices over the last year range from $922,000 for houses to $519,400 for units.
Is Melbourne one of the most expensive cities? ›
Brisbane overtakes Melbourne as Australia's third most expensive city to buy property for the first time in 15 years. Sydney, Canberra and Melbourne have long been touted as Australia's most expensive cities when it comes to property, but after three years of a COVID-19-bolstered boom, Brisbane has climbed the ranks.
What is the affordability of housing in Melbourne? ›
The latest National Shelter-SGS Economics and Planning Rental Affordability Index for greater Melbourne shows an average rental property costs 24 per cent of the average household's income of $108,955.
Melbourne's median house price dropped 1.5 per cent over the first three months of 2024, extending a period of stagnation that began with modest price rises last year.
Is an apartment in Melbourne a good investment? ›
Apartments in Melbourne City and surrounding areas have been gaining traction among property investors, and it's easy to see why. Melbourne has been ranked as one of the world's most liveable cities, making it an attractive destination for both local and international buyers.
What are the disadvantages of living in Melbourne? ›
What are some of the disadvantages of relocating to Melbourne? Dreary weather, the high cost of living and its remote location are some of the cons of living in Melbourne.
What salary do you need to live comfortably in Melbourne? ›
According to Payscale, the annual average salary in Melbourne is USD 75,000. Most individuals earning between USD 60,000 to USD 75,000 can live comfortably in the city. They can afford necessities such as rent, utilities, groceries, and transportation but have limited entertainment options.
Why is Melbourne so livable? ›
With clean air, an abundance of parks and gardens to enhance physical well being, Melbourne is a delightful place to be. In the middle of our bustling city, you can take a break with age-old trees, manicured lawns and abundant wildlife. Restore yourself in pockets of calm and tranquillity.
Why is Australian housing so overpriced? ›
Some factors that may have contributed to the increase in property prices include: greater availability of credit due to financial deregulation. low interest rates since 2008, increasing borrowing capacity to borrow due to lower repayments. limited government release of new land (reducing supply).
Is Melbourne an expensive city to live in? ›
Yes. Melbourne is the second most expensive city to live in Australia. The total cost of living for a single person can be as high as USD 2367, whereas a family of four requires around USD 5511 per month.
Why is Australian housing unaffordable? ›
Australia's unusually high population growth and increasing urban concentration have a large effect on house prices. The scarcity of well-located residential land means many homebuyers are missing out on the benefits of city living.
Are Melbourne house prices coming down? ›
According to Domain figures, the value of Australia's housing market fell by -5% across capital cities in 2022. Sydney dropped by -10.9% and Melbourne was down -5.9%.
