Melbourne: 90+ suburbs where house, unit prices have declined

17 hours ago 1

Aerial view of houses and apartments in North Melbourne, looking towards the Melbourne city skyline

Many Melbourne inner city median unit and house prices have decreased since 2020, according to PropTrack.

House or unit prices have gone backwards across the past five years in almost 100 Melbourne suburbs — but experts believe we’ll soon see a growing number swap doom for boom.

In 80 areas, mostly across the city’s inner ring, typical values for units including apartments have decreased since 2020, creating opportune conditions for bargain-hunting buyers.

Analysis of data from realestate.com.au’s research arm, PropTrack, shows median house prices in 16 suburbs – also mostly among inner suburbs – have declined.

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But on the flip side, houses in more than 40 areas predominantly in the leafy north east and south east have gone from doom to boom since the pandemic.

Median prices in areas such as Lower Plenty, Lysterfield and Diamond Creek have all since surged past $1m, adding hundreds of thousands of dollars to their owners’ hip pockets along the way.

PropTrack senior economist Angus Moore said that Melbourne’s units had not experienced strong growth compared to other Australian states.

In a sign that now might be an ideal time to buy, he added that conditions in Victoria’s capital were looking firmer this year than they have in a while.

“This is a real change from the past few years, since the RBA started raising rates, where home prices were tracking sideways or falling,” Mr Moore said.

53 Alma St, Lower Plenty - for herald sun real estate

53 Alma St, Lower Plenty, is for sale with a $1.275m-$1.35m asking range. Lower Plenty is among Melbourne’s top-performing suburbs for median house prices since 2020.

PropTrack senior economist Angus Moore said conditions were looking “firmer” for Melbourne this year than they have for a while.

Prominent Melbourne-based buyers’ advocate Frank Valentic said Victoria was still experiencing the pandemic ripple effect of people wanting larger blocks and homes with space to work remotely.

And with many middle-to-outer suburbs in the north east and south east being relatively affordable, first-home buyers have been pushing up prices and competition.

“We will continue to see many middle ‘doom suburbs’ go to boom suburbs,” Mr Valentic said.

When it comes to units and apartments, there’s an oversupply of them compared to detached houses in many areas, he added.

Mr Valentic said while buying a bargain in these suburbs was possible, it was important for purchasers to steer clear of cheap “lemon” properties.

9 Ryefield Court, Diamond Creek - for herald sun real estate

9 Ryefield Court, Diamond Creek, has a $890,000-$960,000 asking range. The suburb is another of Melbourne’s top performers for the past five years.

Advantage Properties buyers advocate Frank Valentic - for Herald Sun real estate

Advantage Property Consulting buyers’ advocate Frank Valentic believes more suburbs will be swapping doom for boom.

In Malvern, where unit and apartment typical values now sit at $650,000 compared to $813,500 five years ago, Belle Property Armadale principal Walter Summons said the market was seeing signs of recovery.

Values became “very hot” in 2020 to 2021 before multiple interest rate rises prompted an exodus of investors who have since been replaced by first-home buyers.

“We’ve certainly seen, in the last couple of months, some improvement with the lower interest rate environment,” Mr Summons said

“So prices may well increase over the next few months.”

307 of 1387 Malvern Rd, Malvern - for herald sun real estate

This one-bedroom apartment at 307/1387 Malvern Rd, Malvern, has a $360,000-$395,000 asking range. There have been 110 unit and apartment sales in the suburb in the past 12 months, PropTrack data shows.

11 Valley Rd, Research - for herald sun real estate

A four-bedoom house at 11 Valley Rd, Research, is on the market with $1.45m-$1.55m price expectations. Median house values in the area have increased by 47.8 per cent to reach $1.6m, since 2020.

In Melbourne’s east, Blackburn units were among the top performers, with its median soaring from $570,000 in 2020 to $765,000 today – equating to a $195,000 increase.

Woodards’ Blackburn partner Rachel Waters said many younger buyers who had grown up in the area with a “gorgeous village feel” wanted to remain local.

“We’re often selling these units and apartments to people who have mum and dad around the corner,” she said.

But the main reason Blackburn’s unit market has stayed strong was a shortage of opportunities to secure low-maintenance properties on a budget, she noted.

“So anything that’s between $500,000 and $800,000 still stays quite consistent in terms of the results,” Ms Waters said.

3 of 5 Clare St,, Blackburn - for herald sun real estate

This two-bedroom townhouse at 3/5 Clare St, Blackburn, will be auctioned on August 16 with a $690,000-$755,000 asking range. The suburb was among Melbourne’s best performers for typical unit values.

Located within walking distance to Blackburn train station, the renovated home features a study, courtyard, hardwood floors, a garage and double-glazed windows.

When it comes to the Melbourne suburbs where typical house values increased the most, Jellis Craig Eltham’s Justin Booth said areas like Diamond Creek and Lower Plenty offered good access to the city for buyers seeking bigger blocks.

“You can have a backyard space for kids to run around, you’ve got space for the dog – you’re not on the back door of your neighbour and jammed in or anything like that,” Mr Booth said.

“The traditional Aussie backyard is still available in Diamond Creek.”

The PropTrack data excludes areas with less than 20 sales in the past 12 months, as well as the Mornington Peninsula which had a massive buyer influx when Covid hit only for holiday home markets to be impacted by a limited time tax increase on secondary homes last year.

Greater Melbourne’s median house price rose 1.6 per cent across 12 months to hit $979,979 in June 2025, according to PropTrack.

How to get a bargain in an underperforming suburb:

+ Aim to buy a property that has good resale and growth fundamentals.

+ Small, older-style boutique apartment and unit blocks are often a good option.

+ Off-street parking is a plus.

+ An outdoor area such as a courtyard is a good feature to have.

+ Try to find a home that’s a decent size – not too small.

+ Buy in an area considered “blue chip” with good amenities.

+ Remember the adage “land appreciates, buildings depreciate”.

Source: Buyers’ advocate Frank Valentic, Advantage Property Consulting.

7 Lenne St, Beaconsfield Upper - for herald sun real estate

7 Lenne St, Beaconsfield Upper, is on the market for $1.4m-$1.5m. The suburb’s median house price rose 42.3% to reach $1.48m across the five years to July 20205.

MELBOURNE: BEST-PERFORMING SUBURBS IN THE PAST FIVE YEARS

HOUSES:

SUBURB: 2020 MEDIAN / 2025 MEDIAN / CHANGE

Lower Plenty: $950,000 / $1.586m / 66.9%

Gembrook: $650,000 / $1.0498m / 61.5%

Kinglake: $606,500 / $930,600 / 53.4%

Research: $1.0825m / $1.6m / 47.8%

Longwarry: $407,000 / $592,800 / 45.7%

Lysterfield: $951,400 / $1,361,444 / 43.1%

Beaconsfield Upper: $1.040m / $1.48m / 42.3%

Diamond Creek: $760,000 / $1.076m / 41.6%

Wandin North: $672,569 / $951,125 / 41.4%

Millgrove: $432,500 / $605,000 / 39.9%

7 Grenfell Place, Lysterfield - for herald sun real estate

This four-bedroom house at 7 Grenfell Place, Lysterfield, has a $1.4m-$1.5m price tag. The suburb in Melbourne’s outer south east has a $1,361,444 median house price.

UNITS:

Hampton East: $687,500 / $975,000 / 41.8%

Doveton: $386,500 / $535,000 / 38.4%

Hampton Park: $410,000 / $560,000 / 36.6%

Blackburn: $570,000 / $765,500 / 34.3%

Beaumaris: $895,000 / $1.175m / 31.3%

Sunshine West: $450,000/ $590,000 / 31.1%

Ivanhoe East: $710,000/ $930,000 / 31%

Mont Albert North: $888,000 / $1,156,944 / 31%

Watsonia: $582,500 / $752,500 / 30.3%

Narre Warren: $437,000 / $564,000 / 29.2%

1A Wallace Cres, Beaumaris - for herald sun real estate

1A Wallace Cres, Beaumaris, a three-bedroom unit, has a $1.18-$1.28m asking range. The suburb was among Melbourne’s top performers for median unit price increases.

MELBOURNE: WORST-PERFORMING SUBURBS IN THE PAST FIVE YEARS

HOUSES:

Cranbourne South: $1.015m / $790,000 / -22.2%

Balaclava: $1.46m / $1.3025m / -10.8%

Parkville: $1,968m / $1.82m / -7.5%

Kensington: $1.0815m / $1.018m / -5.9%

Armadale: $2.6m / $2.45m / -5.8%

Windsor: $1.39m / $1.315m / -5.4%

Elsternwick: $1.925m / $1.826m / -5.1%

Cremorne: $1.29m / $1.25m / -3.1%

South Melbourne: $1.423m/ $1.38m / -3%

Middle Park: $2.63m / $2.55m / -3%

According to PropTrack, Melbourne’s median home price – incorporating houses, units and apartments – was $818,000 in June 20205. Picture: Visit Victoria/Emily Godfrey.