Recent forecasts suggest that 2026 could mark a turning point for Melbourne’s property market, with some experts tipping that Melbourne will lead the nation in growth next year. House prices are projected to rise by 6.6% and unit prices by over 7%.

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We expect to see the demand and supply balance likely to persist, keeping upwards pressure on pricing. Recent data shows the total number of available listings is trending lower, even as demand increases. Market conditions like these make the role of a Buyer’s Advocate essential to try and gain off market opportunities.

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The rental market will remain tight and support investor interest. Vacancy rates are very low in parts of Melbourne, which will continue to boost rental yields and demand for well-located rental properties.

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Affordability pressures as well as increased first home buyer activity will nudge demand towards units and apartments. As house prices continue to become more expensive, we expect to see both buyers and renters driving demand for smaller dwellings. Suburbs marked to see great unit and apartment growth next year include Brunswick East, Collingwood, Docklands, Hawthorn East, Richmond, St Kilda and St Kilda East.

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We expect to see growth in areas that will benefit from the opening of the Metro Tunnel. Ardern, North Melbourne and West-inner suburbs will benefit from a large urban renewal precinct. Areas around Footscray and Yarraville will have the combined effect of broader transport as well as infrastructure upgrades increasing their attractiveness for buyers and investors. Suburbs on the Cranbourne, Pakenham and Sunbury lines will gain a faster commute to the city.

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