Is Melbourne actually undervalued in 2026?

On a Sydney/Melbourne ratio basis, yes — the gap is at multi-decade highs. But Victoria's land tax and tenancy reforms have permanently changed the after-tax return, so 'undervalued' only matters once those holding costs are modelled in.

How does VIC land tax change your strategy?

We size each Melbourne holding so the client stays under, or just inside, sensible aggregate land value bands across their portfolio. For multi-property investors we often structure across entities or pair Melbourne with a lower-land-value state.

Which Melbourne suburbs do you focus on?

Inner north (Reservoir, Preston, Coburg), inner west (Sunshine, Footscray, Yarraville) and middle-ring bayside (Frankston, Seaford, Chelsea). Houses on land — not new-build apartments.

NOVAQ RealtyNew Opportunities
in Value And Quality

Book a Strategy Call

VIC · Buyers Agent

BuyingpropertyinMelbourne

Melbourne is a contrarian opportunity in 2026. After several flat years of underperformance vs Brisbane/Perth, value has emerged in the inner middle-ring. We are selective on stamp duty, land tax surcharges and rental reform exposure.

Market snapshot

Melbourne at a glance

Median house

$945,000

Median unit

$595,000

Rental yield range

3.3% – 4.2%

Vacancy rate

~1.5%

12-month growth

+2.1% (12m to Apr 2026)

Sources: CoreLogic, SQM Research, ABS — indicative as at May 2026. Numbers are not guarantees of future performance.

Why we buy here

Population growth returned strongly post-2023
Value gap vs Sydney is at multi-decade highs
Inner middle-ring houses on land trade at sharp discounts to 2022 peak

Suburbs we’re watching

Reservoir / Preston
Tram + train, gentrifying
Sunshine / Footscray
Inner-west value + airport rail
Frankston / Seaford
Bayside affordability play

What to watch

VIC land tax + windfall gains tax — model carefully for portfolios
Tenancy reform is landlord-stricter than other states

Melbourne FAQs

Buying in Melbourne — questions we hear most

Is Melbourne actually undervalued in 2026?: On a Sydney/Melbourne ratio basis, yes — the gap is at multi-decade highs. But Victoria's land tax and tenancy reforms have permanently changed the after-tax return, so 'undervalued' only matters once those holding costs are modelled in.
How does VIC land tax change your strategy?: We size each Melbourne holding so the client stays under, or just inside, sensible aggregate land value bands across their portfolio. For multi-property investors we often structure across entities or pair Melbourne with a lower-land-value state.
Which Melbourne suburbs do you focus on?: Inner north (Reservoir, Preston, Coburg), inner west (Sunshine, Footscray, Yarraville) and middle-ring bayside (Frankston, Seaford, Chelsea). Houses on land — not new-build apartments.

Visit us · Melbourne buyers agent

NOVAQ Realty

44 Sky Royal Terrace
Burleigh Heads QLD 4220
Australia

+61 415 083 710·admin@novaqrealty.com.au

Australia-wide service · Melbourne acquisitions handled remotely with on-the-ground inspectors.

Get in touch

Looking to buy in Melbourne?

Tell us your goal and we’ll match you to the right suburb, configuration and entry price — before you engage us.

⚡ Instant calendar · Free 60-min call

Book a strategy call Call 0415 083 710

Takes 60 seconds. Pick your time straight after — our live booking calendar opens the moment you submit.

Step 1 of 2 · ~60 seconds

Tell us about you, then pick a time instantly from our live calendar — free 60-minute strategy call, no pitch.

⚡ Instant calendar. Our live booking opens on the next screen — no waiting for us to email you back.

By submitting this form you agree to our Privacy Policy and Terms. We'll use your details to contact you about your enquiry — no spam, ever.

Your enquiry is sent securely to the Novaq team. We provide general guidance based on experience and data — this is not personal financial advice.

Other areas we cover

Brisbane Gold Coast Sunshine Coast Sydney