Melbourne’s housing market has experienced the lowest value growth since the beginning of the pandemic.
Between March 2020 and April 2025, Melbourne dwelling values grew by 16.2%, versus 43.3% growth across the combined capital cities.
As a result, Melbourne’s median dwelling value ($781,000) is the second cheapest out of the five major capital cities, just ahead of Perth’s ($779,000).
Melbourne’s relative affordability has generated increasing buyer interest. NAB’s Q1 2025 Property Survey revealed that 44% of respondents believe that Victoria is at the start of a recovery, whereas only 10% view Victoria as a declining market.
Source: Q1 2025 NAB Property Survey
Melbourne’s final auction clearance rate has also surged into the high 60s, which points to rising values.
Melbourne was also the only capital city to post a preliminary auction clearance rate above 70% over the weekend.
Melbourne’s preliminary rate of 73.8% was its second-highest of the year, with 935 auctions held across the city.
As illustrated in the following chart derived from Domain data, Melbourne home values are tracking at a cyclical low against the other capital cities.
As a result, it has started to attract interest from bargain hunters and first home buyers alike.
