The start to 2026 has delivered encouraging signs for the Melbourne property market. While potential buyers (and those with mortgages) have seen unwanted interest rates rises to start the year, there were very healthy clearance rates over February, while March delivered strong competition for well-priced properties as well as excellent results for the unit sector.
So what does this mean for the next few months of 2026? Early indicators suggest the market is building genuine momentum, and there is an optimistic sentiment that Melbourne can return to one of the powerhouses of the Australian real estate market.
Reserve price disclosure to provide more transparency for buyers
The Jacinta Allan-led state government is introducing new legislation that will force real estate agents to disclose the reserve price of a property prior to sale. The legislation will be the first of its kind in Australia, and while an exact date has not been set, it is likely to be introduced in May or June of this year.
One of the main benefits potential buyers will get from the new legislation is an unprecedented amount of transparency when it comes to an honest indication of what the home might sell for. This will also eliminate any type of underquoting by agents.
“Buying a house is stressful enough – so we’re making it fairer by requiring the sold prices of homes to be disclosed,” said Nick Staikos, Minister of Consumer Affairs. “Most Victorians will buy a home once or twice in their lifetime – It is crucial to have transparent information about sales prices to navigate this high-stakes and stressful process,” added Erin Turner, CEO of the Consumer Policy Research Centre.
The quickest suburbs to save that 20% deposit
Domain’s ‘First Home Buyer Report 2026’ was released in February, with a few key takeaways from the report including improved affordability, units dominating buying activity, and lifestyle priorities weighing on buyer decision-making.
The report also delved into average time frames for how long it will take to save a 20% deposit for a house or unit. As an example, for a couple aged between 25-34, to put down a deposit on a house in Sydney would take approximately 7 years and 7 months. In Melbourne on average, the timeframe would be 5 years and 3 months.
One of the key areas highlighted in the report as a place where buyers can save a deposit relatively quickly is the Essendon region, which includes Essendon, Essendon North, Moonee Ponds, Ascot Vale, Aberfeldie, and Travancore. A couple aged between 25–34 would only need 2 years and 9 months to save for a unit in this area. For houses, the Moreland-North region - covering suburbs such as Fawkner, Coburg North, and Glenroy - would take only 5 years to save up a deposit for an actual house.
Melbourne is the new affordable capital of Australia!
Melbourne has quickly become one of the most affordable capital cities in Australia to buy a home, with an article in Domain in March noting that there are 70 suburbs across the city where you can purchase a home for under $750,000. This is despite Melbourne recording a record-high median house price of $1.11m.
“Melbourne still has options for detached homes at the entry level,” said Dr Nicola Powell, chief of research and economics at Domian. “They may be in outer suburbia, but that’s what you would expect. Many other cities would be envious that at that price point, you can get your own block of land.”
First-home buyer activity in Melbourne also spiked over the last twelve months, thanks to the government’s 5% deposit scheme on properties under $950,000. In addition to the government scheme, first-home buyers in Victoria have also been accessing state government concessions.
Some of the affordable and appealing suburbs on Domain’s list of 70 include Glenroy ($725,000), Mernda ($730,000), Cranbourne ($700,000), and Craigieburn ($695,000).
Grab a piece of one of Time Out’s coolest suburbs in the world
Just a stone’s throw to Melbourne’s bustling city is one of the world’s coolest global neighbourhood’s according to Time Out magazine. Towards the end of 2025, the magazine named 39 of the hippest pockets in a number of cities in the world, including neighbourhoods Jimbocho in Tokyo, Barra Funda in Sao Paolo, and Ménilmontant in Paris.
Securing 24th place on this list was North Melbourne, located just 2kms north-west of the CBD. With a median property price of $900,000, Time Out sights North Melbourne’s diverse mix of restaurants and cuisines, the buzzing strip that is Errol Street, and thriving cultural scene as its shining lights.
According to Time Out, the perfect day in North Melbourne: “If the sun is shining, grab a coffee and sweet treat from Bread Club or Auction Rooms and settle in for a spot of people-watching on the nature strip running through the middle of Errol Street. Go crate digging at Heartland Records, before wandering through the stalls at Queen Victoria Market, For dinner, head to the Courthouse Hotel for British-inspired pub fare, then finish with a nightcap at Bear’s Wine Bar or Prudence.”
For investors chasing stability and future upside, Melbourne is once again shaping up as a market worth watching closely.
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Lifestyle has become one of the most persuasive market forces in Melbourne and its surrounding regions, and few elements capture this more vividly than a suburb’s dining culture.
Victoria is introducing major changes to rental laws from 25 November 2025 (or earlier if proclaimed).
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