Melbourne property prices fall as market becomes more affordable

Victorian property prices declined across most regions in the December quarter 2024, creating new opportunities for buyers to enter the market.

House prices in outer Melbourne fell 1.2 per cent to a median of $758,500, while inner Melbourne dropped 1.4 per cent to $1.6 million.

Real Estate Institute of Victoria (REIV) CEO Kelly Ryan said the market remained resilient despite multiple challenges.

“The Victorian real estate market has experienced a unique series of challenges over the last few years, with increased taxation, rental market regulations, interest rates, and stubborn inflation placing mounting pressure on both home buyers and investors,” Ryan said.

Regional Victorian house prices declined 0.9 per cent to $595,000, while metropolitan Melbourne fell 2.1 per cent to $894,500.

Inner Melbourne units provided a more affordable entry point at $587,500 after a 2 per cent quarterly decline.

Some suburbs bucked the downward trend, with Sandringham unit prices surging 31.1 per cent to $830,000 and Brighton rising 28.4 per cent to $1.375 million.

Regional centres showed strength in the unit market, with Golden Square in Bendigo recording 21.4 per cent annual growth.

“Melbourne’s historic place as the second-most expensive capital has shifted, and it is now the fourth-most affordable,” Ryan said.

The REIV expects the Victorian market to rebound in 2025 as national housing markets become more aligned.