Melbourne’s property market in April 2026 is best characterised as two-speed, leaning towards a buyers’ market overall, but with pockets of opportunity for sellers. While Melbourne’s median dwelling value is approximately $830,371 (Cotality, January 2026), recent quarterly figures show a slight decrease of 0.6% (March 2026), and values remain 1.3% below the March 2022 peak (PropertyUpdate/Cotality). However, outer suburban and affordable properties are experiencing growth, driven by first-home buyers and investors.
The Melbourne market isn’t behaving as a single entity. We’re seeing a divergence in performance, with the inner city and higher-density properties softer, while outer suburbs are showing resilience and even growth. This creates a nuanced environment where a blanket statement about a ‘buyers’ or ‘sellers’ market isn’t entirely accurate.
What’s happening with house prices?
Melbourne’s median house price rose to between $1,020,000 and $1,050,000 by December 2025, representing 11–14% annual growth (Domain). However, this growth slowed in the March 2026 quarter, with values dropping 0.6% (PropertyUpdate/Cotality). Typically, around 60–65% of Melbourne properties are selling at or below the asking price, with the remaining 35–40% achieving above-asking results, primarily in high-demand areas (Bamboo Routes, early 2026).
How does the time of year affect selling?
Autumn (March–May) is the second-strongest selling season in Melbourne, offering a balance between buyer numbers and reduced competition from other vendors. While Spring (September–November) remains the peak, Autumn can provide a good opportunity to sell, particularly as buyer activity restarts after the summer holidays. The typical private treaty sale in Melbourne closes approximately 3% below the initial asking price, but well-run auctions in desirable suburbs can still achieve results at or slightly above the quoted range.
What’s driving the two-speed market?
Affordable and outer-suburban properties are outperforming the city median, driven by first-home buyers and investors anticipating first-home buyer grant activity. New-build properties, concentrated in specific corridors like the CBD and Docklands, make up 15–20% of listings (Bamboo Routes, January 2026). Unit rents are rising faster than house rents, indicating increased demand in the apartment market, although this hasn’t yet translated into significant price growth.
The appraisal spread
The biggest challenge for vendors right now is the widening gap between appraisal ranges. Agents are naturally optimistic, but the market is proving more price-sensitive. Buyers are carefully evaluating properties and aren’t willing to overpay, meaning properties are taking longer to sell if overpriced. This makes accurate pricing, based on recent comparable sales, more critical than ever.
Frequently asked questions
Will interest rate rises impact my sale price?
Interest rate rises don’t necessarily halt buyer activity; they moderate it and increase price sensitivity (LJ Hooker’s Mathew Tiller). Buyers become more cautious and scrutinise their finances, potentially leading to longer days on market and a greater emphasis on value. Accurate pricing is crucial in this environment.
What’s happening with apartments in the inner city?
Inner-city, high-density apartments are experiencing softer conditions compared to houses and outer suburban properties. Increased supply in these areas, coupled with a shift in buyer preferences post-pandemic, is contributing to this trend. Expect longer selling times and potentially greater negotiation.
Is now a good time to sell if I’m downsizing?
If you’re downsizing, the current market presents a reasonable opportunity. The demand for smaller, more affordable properties remains strong, particularly in outer suburbs. However, be realistic about pricing and allow sufficient time for a sale. A well-presented property in a desirable location will always attract interest.
How much below asking price are properties actually selling for?
The typical private treaty sale in Melbourne closes approximately 3% below the initial asking price. However, this varies significantly depending on the property, location, and marketing strategy. Well-run auctions in desirable suburbs can still achieve results at or slightly above the quoted range.
Questions to ask your agent
- Can you provide a detailed comparative market analysis (CMA) showing recent sales of similar properties in my area, specifically within the last 90 days?
- What is your strategy for marketing my property to reach the widest possible pool of qualified buyers, and what is the associated cost breakdown?
- Based on current market conditions, what is your realistic price expectation for my property, and what is the potential range I should prepare for?
This article contains general market information based on data current as at April 2026. It does not constitute financial, legal, or real estate advice specific to your property or circumstances. For an appraisal and tailored advice, speak with a Fletchers agent in your area.