While Melbourne has not seen as sharp a recovery in prices as in other cities such as Sydney and Brisbane, it also did not see as large a decline in property values in 2022.

Of course, there are many sub-markets in Melbourne, but despite some potential headwinds, it’s clear Melbourne is in the recovery stage of the property cycle.

Today the median property price for a house in Melbourne is $943,725, which is 0.7% up quarter-on-quarter and 3.3% up over the past 12 months.

Meanwhile, unit prices sit at around $610,490, up 0.2% over the quarter and 2.5% over the past 12 months.

Maybe you’re selling a Melbourne property soon and want to know where it stacks up against the most exclusive, or you’re just curious to know where the most affluent neighbourhoods are.

These are the suburbs with the highest median house prices in Melbourne, using data from Domain and realestate.com.au.

1. Toorak – $5.18m

Toorak, one of Melbourne’s most exclusive and affluent suburbs, is a long-standing front-runner for property prices so it’s no surprise to see this suburb at the top of the list yet again. 

Toorak is located about 5km south-east of the CBD and has a range of luxury properties on offer.

The median house price is currently sitting at a whopping $5.18 million with rent costing an average of $1,250 per week.

Units are about $963,000 with an average weekly rent of $550.

2. Kooyong – $3.4m

Kooyong is a small suburb about 7km south-east of the CBD, filled with apartments, parklands, ovals, and fields.

The median house price in Kooyong is $3.4 million with an average rent of $900 a week.

Units sit at a median of $1.08 million and would cost you about $665 a week in rent, more expensive than nearly every other suburb on this list.

3. East Melbourne – $3.36m

East Melbourne, only 2km from the CBD, is an affluent suburb that gives you the convenience of city living with the added bonus of parks and greenery.

You’ll find some of Melbourne’s oldest apartments and grand Victorian terraces.

The median house price is about $3.36 million and renting a house comes in at a whopping average of $1,050 a week. 

Units, slightly more affordable, have a median price of $760,000 and an average rent of $545 a week.

4. Canterbury – $3.26m

Canterbury Melbourne

Canterbury, located in between Balwyn and Camberwell, offers historic residences and Melbourne’s oldest schools.

Houses come in at a median of $3.26 million and units come in at a median of $1.05 million.

Renting doesn’t come cheap either with an average of $1,150 a week for houses and $585 a week for units.

5. Brighton – $3.09m

Brighton Melbourne

The fourth most expensive suburb in Melbourne, Brighton, is situated 11km away from the CBD.

The area is known for its beaches and luxury real estate from the Victorian and Gregorian eras.

The median house price is currently $3.09 million with an average weekly rent of $1,300 per week.

The median unit price is about $1.10 million and rent will cost you an average of $650 a week.

6. Malvern – $3.0m

Malvern, situated about 10km south-east of the city, has prices similar to those in Balwyn.

The median house price is $3.0 million whereas the median unit price is $655,000.

Renting will cost you around $1,000 a week for houses and $480 a week for units.

Malvern has lots of greenery, open spaces, boutique shopping, and Victorian mansions.

7. Balwyn – $3.0m

Not so far from Camberwell, Balwyn is home to many refined mansions, lush gardens, and cafes.

With a median unit price of $947,876 and average rent of $520 a week, they’re actually one of the more affordable on the list.

Houses, however, come in at a median of $3.0 million and would cost you about $895 a week if you were renting.

8. Kew – $2.74m

Kew, only 5 to 6km east of the city is another suburb that has easy access to the CBD with its tramline.

The Victorian and Edwardian homes are owned by couples and older families.

The price to buy a home is about the same as in Camberwell, $2.74 million for a house and $800,444 for a unit.

Renting is a little more expensive though, $950 a week for houses and $525 for units.

9. Camberwell – $2.46m

This image has an empty alt attribute; its file name is Camberwell2-300x170.jpg

Camberwell, the tenth most expensive suburb in Melbourne, is located about 10km east of the CBD.

It offers its own long shopping strip and easy access to the city via tram, making it perfect for young families.

Despite median house and unit prices falling over the past year, they still sit at a hefty $2.46 million for houses and $890,000 for units.

If you’re looking to rent, it’ll cost you about $950 a week for houses and $525 a week for units.

10. Middle Park – $2.29m

Middle Park Melbourne

Middle Park is a bayside suburb that’s located right outside of the CBD, about 3km away.

There have been development restrictions in the area, driving up the cost of the property.

Houses come in at a median of $2.29 million whereas units would cost significantly less at a median of $947,000. The average rent for houses is about $950 a week and $475 for units.

How much could Melbourne home prices rise in 2024?

Melbourne house prices underperformed in 2023, and the gap between Melbourne and Sydney home prices is wider than it has been for a long time.

This is despite Melbourne receiving the largest share of overseas migrants over the last year causing a significant undersupply of properties.

In my mind well-located Melbourne homes and units have underlying inherent equity as they could not be replaced at current market values suggesting this Melbourne home prices could rise by at least 5% through 2024.

Of course, this is just an average and some locations will outperform others considerably, particularly Melbourne’s middle ring gentrifying suburbs.

Property investors are slowly returning to the Melbourne market and when interest rates fall home buyers will be spurred on.

At the same time, Melbourne’s rents are likely to skyrocket in 2024 due to a shortage of rental houses and apartments.

About Brett Warren
Brett Warren is Director of Metropole Properties Brisbane and uses his two decades of property investment experience to advise clients how to grow, protect and pass on their build their wealth through property.