Melbourne’s South East continues to experience price growth in early 2026, with Frankston leading the state with an annual increase of 14.3% (Cotality/OpenAgent, January 2026). While Melbourne’s overall median dwelling value saw a slight dip in the March quarter of 2026 (-0.6%, PropertyUpdate/Cotality), the region benefits from gentrification in areas like Frankston and Cheltenham, and strong demand from first-home buyers and investors.
Despite a small quarterly adjustment to Melbourne’s overall median dwelling value, the South East is demonstrably outperforming other areas of the city and most other capitals. The region’s affordability, coupled with ongoing infrastructure investment, is driving continued buyer interest and price appreciation. This contrasts with slowing growth forecasts for Brisbane, Perth, and Adelaide.
What’s happening with prices in Frankston and Kingston?
Frankston is currently the highest-growth region in Melbourne, with a median house price of $856,746 and annual growth of 14.3% (Cotality/OpenAgent, January 2026). Kingston is also performing strongly, recording an 8.8% annual increase to a median of $1,085,527 (Cotality/OpenAgent, January 2026). These areas are benefiting from gentrification and increased amenity.
Are other parts of the South East also seeing growth?
Dandenong has seen an 8.5% annual growth to $794,550 (Cotality/OpenAgent, January 2026), while Knox recorded a 7.6% increase to $965,300 (Cotality/OpenAgent, January 2026). The broader Melbourne median dwelling value rose approximately 5.4% annually to early 2026 (Cotality), although monthly growth was flat in February 2026.
What about the impact of interest rates and overall market conditions?
Melbourne’s median house price rose from approximately $920,000 in January 2025 to $1,020,000–$1,050,000 by December 2025, representing 11–14% annual growth. While values dipped -0.1% in December 2025, they rebounded +0.2% in January 2026 (Cotality). The gap between Melbourne and Sydney house prices remains historically wide – exceeding $600,000 – suggesting continued value in the Melbourne market.
The timing risk.
While the South East is currently performing well, the broader Melbourne market experienced a 0.6% decline in the March 2026 quarter (PropertyUpdate/Cotality). This highlights the potential for short-term fluctuations and the importance of carefully considering the timing of a sale. Predicting future interest rate movements and their impact on buyer sentiment remains a key uncertainty.
Frequently asked questions
Will gentrification continue to drive price growth in Frankston?
Gentrification in Frankston is showing clear signals – specialty retail, home renovations, and a demographic shift (early 2026). This is contributing to price appreciation of 8–15% over 2–3 years. Continued infrastructure investment and improved amenity are likely to sustain this trend.
What’s happening with apartment prices in the South East?
Apartment prices in Melbourne are increasing, particularly in inner suburbs. This is driven by demand for more affordable housing options. However, outer suburbs may experience mixed results due to oversupply and reduced investor activity.
Is now a good time to sell, given the recent market fluctuations?
Melbourne’s median dwelling value is currently approximately $830,371 (Cotality, January 2026). While there was a slight dip in the March quarter, the South East is showing resilience. A detailed market appraisal is crucial to assess your property’s potential.
What’s the difference between the Domain and Cotality median price figures?
Domain reported a Melbourne house median of $1,083,043 in the September quarter 2025. Cotality’s January 2026 figure is $830,371. These differences reflect varying methodologies and data collection periods. It’s important to consider multiple sources.
Questions to ask your agent
- Can you provide a detailed comparative market analysis (CMA) specifically for my property, outlining recent sales of comparable homes in my immediate area?
- What marketing strategies do you recommend to reach the widest possible pool of qualified buyers for my property?
- What is your proven track record of achieving strong sales results in this specific suburb, and can you share client testimonials?
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.