After strong growth cycles in markets like Brisbane, Adelaide and Perth, where prices and demand surged through recent years, many investors are now looking south for value. Those markets have delivered impressive gains but rising prices and tightening yields are leading experienced investors to reassess where the next opportunity lies.

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Right now, Melbourne remains comparatively affordable against other major capital cities. New data shows Melbourne’s median house price sits well below Sydney’s and only around on par with Brisbane, despite being Australia’s largest financial and cultural hub, creating a relative pricing gap that savvy investors can’t ignore.

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On a national measure of affordability, Melbourne also ranks more accessible than Sydney and several other capitals, meaning you need fewer years’ worth of income to buy the same property here compared with most competing markets. That price gap is creating a window where investors can secure quality assets at a lower entry point than we’ve seen historically.

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But it’s not just about price.

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Population growth continues to drive demand. Australia’s population grew by approximately 1.5% in the year to June 2025, equivalent to an additional ~410,000 people nationally. Strong population growth tends to place ongoing pressure on housing demand and plays directly into rental and sales fundamentals.

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And while vacancy rates have ticked up slightly as market conditions stabilise, they remain relatively low, reflecting continued rental demand. Most capital cities, including Melbourne, are still operating near or below long-term average vacancy levels, which supports rental income potential for investors.

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Infrastructure investment continues to expand across Melbourne too, from major transport upgrades to health and education precincts, reinforcing the city’s long-term liveability and appeal.

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For seasoned investors, this is the accumulation phase, buying strategically before broader market momentum returns. The weakest performance in recent years means Melbourne hasn’t run as hard or as fast as other capitals, and that slower growth cycle is now turning into opportunity.

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Because once confidence lifts and local competition heats up again, the affordability advantage we’re seeing today may not last.

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If you’re looking to expand your portfolio while Melbourne remains a value play compared to other capital cities, now is the time to start the conversation.