What $1m buys in Melbourne now compared to Easter last year | PropTrack

2 weeks ago 10

Melbourne buyers with $1m are now getting less home, less land and fewer choices than they could just one Easter ago.

Across Melbourne, homebuyers with a $1m budget are being forced to settle for less.

Less land, fewer bedrooms, and suburbs they never planned to consider, as new data reveals massive changes to some suburbs in the space of just 12 months.

Experts say buyers who sat on the sidelines last year hoping for prices to fall are now discovering they’ve lost their edge, after values in key areas crept higher and housing stock tightened.

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REA Group senior economist Eleanor Creagh said if Melbourne buyers were ready to buy a year ago but waited, they’re likely getting less for their money now.

“In a number of suburbs, $1m no longer buys what it used to,” Ms Creagh said.

The change is most stark in suburbs like Middle Park, Avonsleigh, Ringwood North, and Wandin North, where the homes that were once within reach are now either more expensive or significantly reduced in size and features.

1/187-188 Beaconsfield Pde, Middle Park, sold for $850,000 last year. But a two-bedroom unit in the suburb is now worth considerably more.

Today’s prices for a comparble home in the same suburb is now $1.2m.

In Ringwood North, Barry Plant’s Michelle Zachariah said $1m used to get buyers a three or four-bedroom house on a 700–800sq m block in a quiet family-friendly street.

“Now you’re looking at a townhouse, or a three-bedder on a 500sq m block,” Ms Zachariah said.

“The buying power just isn’t the same anymore.”

In late 2023, buyers could still find full-sized homes in Ringwood North for just over $1m.

Just 12 months later, similar homes in Ringwood North were pushing well past $1m — and attracting fierce competition.

Ms Zachariah said more buyers were being pushed to Mooroolbark or Lilydale and those waiting for a better time to buy were already behind.

“The window has closed. If you’re in a position to buy, you need to buy now.”

In Wandin North, buyers with a $1m budget were once spoiled for choice.

In February 2024, this Wandin North property sold for $960,000 — a common entry point at the time.

By late 2024, comparable homes in Wandin North had surged to $1.11m, shrinking buyers’ options.

But Woodards Yarra Valley’s Gary Fletcher said homes that would have sold for $850,000 last year were now pushing $1m — leaving less room for land, renovation, or lifestyle extras.

“You’re still getting a decent home,” Mr Fletcher said.

“But not what you were getting 12 months ago.”

Melbourne families looking to upgrade in 2025 are finding their $1m budget buys less space and fewer bedrooms. Picture: Jake Nowakowski.

In Middle Park, units that once sold in the $700,000 range are now fetching upwards of $1.08m, according to PropTrack data, a leap that has priced out many first-home buyers and downsizers.

Jellis Craig Port Phillip’s Ben Manolitsas said $1m buyers in 2024 still had a shot in Middle Park.

Singles hoping to enter the market with $1m are facing tough compromises on size and location. Picture: David Caird.

But today he noted that “anything near that mark is pretty rare”.

“Each year people wait, they’re missing out on 2 to 4 per cent growth,” Mr Manolitsas said.

“Over time that adds up, and buyers get left behind.”

In the Yarra Valley, $1m still buys lifestyle but buyers are sacrificing land, privacy, or finish.

In Yarra Glen, the story is more about land.

A $1m budget still secures a four-bedroom house, but Integrity Real Estate’s Rob Verhagen said that often now meant a smaller block, or one in less established parts of town.

“Buyers who want the land are having to move further out,” Mr Verhagen said.

“Some are trading down on features just to stay in the postcode.”

Even in quieter areas like Avonsleigh, a suburb considered comfortably affordable until recently, buyers have seen their options shrink.

Homes that sold for around $760,000 last year are now listed closer to $1m or require work to meet the same lifestyle brief.

REA Group economist Eleanor Creagh said $1m no longer stretches as far and buyers are paying the price.

Ms Creagh said the most striking part of the shift wasn’t just the price movement it was what people were having to give up.

“We’re seeing compromises across the board smaller floorplans, less land, or moving to suburbs people weren’t previously considering,” she said.

“And if rate cuts do arrive this year, more competition could only make it harder.”

What $1m buys you now versus last year

Suburb	Property Type	Last Year Price Estimate	Median Sale Price 12 months	Change in Median Price 12 months (%)
Middle Park	U	$704,960	$1,080,000	53.2
Avonsleigh	H	$760,108	$977,500	28.6
Ringwood North	U	$752,773	$950,000	26.2
Wandin North	H	$810,067	$957,500	18.2
Yarra Glen	H	$799,828	$935,000	16.9
Kinglake	H	$814,655	$945000	16
Bittern	H	$970,017	$1,100,000	13.4
Gowanbrae	H	800176.8347	$905,000	13.1
Yallambie	H	$940,366	$1,025,000	9
Diamond Creek	H	$1,020,408	$1,100,000	7.8