While the purchase price is the largest outlay, the most significant *cost* associated with buying property in Melbourne as of December 2025 is generally stamp duty, also known as transfer duty. This is a state government tax levied on property purchases, and it’s a substantial component of the overall expense.
Currently in Melbourne, stamp duty is calculated on a sliding scale based on the property’s value. For properties valued around the median dwelling price of $823,495, buyers can expect to pay a significant amount – potentially tens of thousands of dollars. In the Eastern Suburbs, where demand for family homes near schools like those in Balwyn and Blackburn remains strong, this cost is a major consideration. First home buyer concessions and exemptions do exist, but eligibility criteria apply. Beyond stamp duty, buyers also incur costs like legal fees (typically $1,500 – $3,000), building and pest inspections ($500 – $1,000), and loan application fees. These costs, while smaller individually, add up. Fletchers’ experience shows that buyers in 2026 are factoring these upfront costs into their offers, and a clear understanding of these expenses is vital for a smooth transaction.
Therefore, while the property price attracts the most attention, stamp duty represents the largest single expense for most Melbourne property purchasers.