Loretta Khoo

BARRY PLANT Market Update 2026

The Melbourne residential property market has shifted into a phase of moderate growth after several years of subdued activity. Home values have been rising again through the second half of 2025 and into early 2026, with Melbourne posting consecutive months of price gains following downturns in 2024. Data from recent market reports show that overall dwelling values in Melbourne increased annually, supported by stronger demand and constrained supply, with median house prices around or above historical averages in many segments. Affordability remains a key issue, but initiatives such as the Home Deposit Guarantee Scheme have helped first-home buyers enter the market. Limited listings and tight vacancy rates continue to place upward pressure on prices, even as the pace of growth moderates compared with the rapid rebounds seen in other capitals earlier.

On the rental side, Melbourne’s market exhibits relative stability compared with other major Australian cities. Rental prices have seen modest growth year-on-year, but unlike cities such as Sydney—where rents have hit record highs—Melbourne’s rents have been comparatively restrained, with vacancy rates remaining low and a balanced rental market supporting both tenants and investors. Broader economic factors, such as consumer sentiment around potential interest rate changes and ongoing population growth, continue to influence buyer confidence and borrowing conditions. Overall, while Melbourne is not in a frenzied boom, the market is showing healthy, sustainable growth driven by demand, low supply, and strong fundamentals, making it an active environment for buyers, sellers and investors alike.

Together with the Barry Plant team in Northcote, Thornbury and Preston, and the resources of Victoria’s most successful real estate network, Loretta is ideally placed to provide you with a level of service and advice that is unmatched in Darebin.