Specific median price data for Doncaster and Templestowe is not available in the current dataset for 2026. However, broader eastern growth regions like Whitehorse East and Knox recorded annual growth of 8.6% and 7.6% respectively in January 2026 (Cotality, January 2026), while Melbourne experienced new uncertainty following rate hikes in February and March 2026.
While specific figures for Doncaster and Templestowe are unavailable, the eastern corridor is seeing a fragmented recovery. Buyers are increasingly sensitive to borrowing costs after the rate hikes in February and March 2026, which has slowed the momentum seen during the previous year.
Growth trends in the eastern suburbs
Nearby growth regions show sustained price growth, with Whitehorse East reaching a median of $1,239,067 and Knox a median of $965,300 as of January 2026 (Cotality, January 2026). These figures suggest a strong baseline for the east, though the pace varies significantly by suburb.
The impact of recent rate hikes
The market is processing RBA rate hikes delivered in February and March 2026. This has introduced uncertainty for vendors who are benchmarking their expectations against the 11–14% median house price increase seen across Melbourne throughout 2025.
Melbourne’s relative value
Melbourne continues to offer a historically wide discount compared to other capitals, with the median house price gap between Melbourne and Sydney exceeding $600,000. This value proposition remains a primary draw for investors, even as growth slows in other states like Perth, where growth is forecast at 1.6% for 2026 (KPMG).
The appraisal spread
There is currently a widening gap between vendor expectations and buyer capacity. Many homeowners are still pricing their properties based on the strong recovery of 2025, while buyers are adjusting their budgets downward due to the 2026 rate increases.
Frequently asked questions
How did Melbourne house prices perform in 2025?
Melbourne experienced a strong recovery throughout 2025, with median house prices increasing by approximately 11–14%. This growth followed a period of correction between 2022 and 2023, where prices dropped 8–10% from their peak due to rising interest rates and state land tax measures.
Are Melbourne prices lower than other capital cities?
Yes, Melbourne is currently trading at a significant discount. The median house price gap between Melbourne and Sydney exceeds $600,000. Additionally, Melbourne’s median has recently dipped below Perth’s and is now only marginally above Adelaide’s, which is historically unusual for the city.
What is affecting property growth in 2026?
Price growth is currently being challenged by rate hikes introduced in February and March 2026, which have created new market uncertainty. While some eastern regions saw growth in early 2026, such as Whitehorse East at 8.6% (Cotality, January 2026), borrowing constraints are impacting buyer budgets.
Which Melbourne regions saw the highest growth in early 2026?
As of January 2026, Frankston held the top position with 14.3% annual growth and a median of $856,746 (Cotality, January 2026). Other high-growth areas include Heidelberg, which saw a year-on-year increase of 25.9% (Domain), and Kingston at 8.8% (Cotality, January 2026).
Questions to ask your agent
- How have the February and March rate hikes specifically affected buyer enquiry levels for properties in this street over the last 30 days?
- What is the current gap between the initial asking price and the final sale price for similar 4-bedroom homes in this pocket?
- Which specific buyer demographics are currently active in the east—local upgraders or investors taking advantage of the Sydney price gap?
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.