Melbourne’s real estate market is never boring. As we move through 2026, the landscape is shifting in fascinating ways. Whether you’re a first-home buyer trying to get a foothold, an investor looking for the next opportunity, or a homeowner contemplating a sale, understanding the current trends is crucial.
At Best Property Agent, we pride ourselves on being more than just transaction handlers; we are your strategic partners. We cater to all your real estate needs—whether you are buying, selling, or renting—by providing solutions that are tailored, transparent, and results-driven.
Let’s dive into what’s making headlines in Melbourne right now and how the right expertise can make all the difference.
The Rise of the Unit: A Structural Shift
If you’ve been keeping an eye on the data, you’ll know that units are having a moment. According to the Real Estate Institute of Victoria (REIV), the median price of Melbourne units rose by 2% to $656,500 in the final quarter of 2025, slightly outpacing houses .
This isn’t just a short-term blip. Experts point to a “structural shift” in the market driven by affordability. With cost-of-living pressures still top of mind, medium-density living is becoming the preferred path for many looking to enter the property ladder .
Suburbs to Watch: Recent standouts include Murrumbeena (unit median up over 50%), Abbotsford, Moonee Ponds, and Box Hill . Even in blue-chip areas like Toorak, older-style apartments are gaining traction for their size and solidity compared to new builds .
How Best Property Agent Helps: Whether you’re targeting a trendy townhouse in the inner north or a classic apartment in the east, our team understands the nuances of these micro-markets. We help buyers identify not just a home, but an asset with strong long-term potential.
Market Cool-Down? Opportunity Knocks
While 2025 was a stellar year for growth nationally, the larger capitals—Sydney and Melbourne—are showing signs of a “speed bump.” December saw Melbourne values dip slightly by 0.1%, a trend that has continued into early 2026 with modest declines .
But don’t mistake a cool-down for a crisis. For savvy buyers, a stabilizing market means less competition and more room for negotiation. For sellers, it means the “set-and-forget” strategy is dead; you need a precise pricing and marketing strategy to stand out.
Best Property Agent Insight: In a market where prices are softening, the quality of your agent matters more than ever. We provide honest, data-backed appraisals and craft marketing campaigns that cut through the noise, ensuring your property reaches the right buyers—not just window shoppers.
The Investor’s Dilemma: Hold, Sell, or Buy?
For investors, Melbourne presents a classic “buyer be greedy when others are fearful” scenario . Recent years have seen some investors flee due to tax settings and tenancy legislation. However, recent ABS data shows investor lending is now growing faster than owner-occupier lending, signaling that “smart money” is beginning to return .
The Long View:
- Supply Crunch: Victoria is facing a significant housing supply deficit. With population growth projected to exceed 7 million soon, demand for housing—especially rental properties—will only intensify .
- Rental Yields: Vacancy rates remain tight. For investors holding property, this can mean strong rental returns, provided the property is managed well .
- The Sell Decision: If you’re sitting on a property with high maintenance costs or unsustainable cash flow, selling to redeploy equity into higher-yielding assets might be the smart play .
How Best Property Agent Helps: We don’t just list properties; we advise on strategy. We sit down with investors to run the numbers on cash flow, capital gains, and future growth, helping you decide whether to expand your portfolio or optimize your current holdings.
Why Choose Best Property Agent?
Navigating a market with mixed signals—where units are rising, houses are steady, and interest rates are the elephant in the room—requires a guide who knows the terrain.
At Best Property Agent, we stand out because we believe real estate is personal. We aren’t just about closing deals; we’re about opening doors to your future.
- For Buyers: We listen to your lifestyle needs and budget constraints, searching for properties that match your vision.
- For Sellers: We combine local market intelligence with premium marketing to attract serious buyers and secure the best possible price.
- For Renters & Landlords: We offer end-to-end property management services that protect your asset and ensure a stress-free experience.
Final Thoughts
Melbourne remains one of the world’s most liveable cities, and its property market reflects that enduring appeal. While 2026 may not see the explosive growth of previous booms, it is shaping up to be a year of opportunity for those who are well-informed and well-advised.
Whether you’re ready to make a move or just starting to explore your options, we’re here to help.
Contact us today to discuss how we can bring your real estate goals to life.
