Melbourne remains a surprisingly affordable city for middle-income borrowers looking to buy a home near the water and be a reasonable commute from the city, new figures show.
Unlike Sydney, Brisbane, Perth and Adelaide, the median house price has not soared into double digits at some point in the past year.
Interestingly, Melbourne’s median house price has also been growing at a slower rate than wages, despite receiving a large influx of overseas migrants, and Brisbane is now on track to overtake this.
In the year to April, the median house price grew 3 percent, well below the wage price index of 4.2 percent, new CoreLogic data released Wednesday showed.
While the median house price of $941,698 is still expensive, there are suburbs near Port Phillip Bay where the median price is still below $600,000.
This is despite Melbourne’s population growing at a faster rate than Sydney’s, as fewer people left the Victorian capital following the influx of new foreign immigrants.
Melbourne remains a surprisingly affordable city for middle-income borrowers looking to buy a home near the water and be a reasonable commute from the city (pictured, a man outside Flinders Street Station)
Frankston North, a one-hour train ride located 53 km southeast of the city, has a median home price of $597,429, making it affordable for the average full-time worker on $98,218.
Frankston North, a one-hour train ride 33 miles southeast of the city, has a median home price of $597,429, making it affordable for the average full-time worker on $98,218, as values rose only 3.3 percent during the year.
Living near the water is now cheaper than doing the same 50 kilometers north of Brisbane, where the median house price in Caboolture is $660,993, following an annual increase of 13.7 per cent.
Brisbane’s median house price over the past year has soared 15.9 per cent to $920,046, putting it within striking distance of overtaking Melbourne.
But it was far from the only state capital city where prices soared: Perth’s median house value rose 21.3 per cent to $753,947, while Adelaide’s midpoint rose 13.9 per cent at $800,648.
Sydney remains Australia’s most expensive capital, with a median house price of $1.421 billion, but its 9.6 per cent annual growth rate is a moderation from the double-digit figures of 2023 and early of 2024.
Living by the water is also much more expensive, even for those on the Central Coast, an hour’s drive north, with Woy Woy having a median house price of $948,550, after a 9 percent over the past year.
Canberra is Australia’s second most expensive city with a median house price of $972,699, but the annual growth rate of 2.8 per cent was also weaker than the wage price index.
Hobart was the only state capital where prices fell, with home values falling 0.2 per cent to $692,004.
Darwin’s median house price rose just 1.4 per cent to $579,229.
Brisbane’s median house price over the past year has soared 15.9 per cent to $920,046, putting it within striking distance of overtaking Melbourne (pictured, a house in Moorooka).
Australian property prices rose for the 15th consecutive month in April, with values rising 11.1 per cent or $78,000 from the low in January last year, reaching $779,817.
CoreLogic research director Tim Lawless said tight housing supply was driving demand, especially in Perth, where homes typically sell in just 10 days.
“Such a mismatch between available supply and demonstrated demand keeps markets skewed in favor of sellers in most cities,” he said.
This is happening despite the Reserve Bank raising interest rates for the 13th time in 18 months in November to a 12-year high of 4.35 per cent.
Melbourne’s slower house price growth is surprising given it has a low rental vacancy rate and population growth rate of 3.3 per cent in 2022-23, up from 2.8 per cent from Sydney, 3.1 per cent from Brisbane and 3.6 per cent from Perth.