VIC · Buyers Agent
Melbourne has been the unloved market for a few years now, which is usually when we start paying attention. Inner middle-ring houses on land are trading well below their 2022 peak. We're selective, the land tax and tenancy reforms aren't going away, but the value is real if you model the holding costs honestly.
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 TerraceBurleigh 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
Thinking about buying in Melbourne?
Tell us the goal. We'll come back with the suburbs, the kind of property and the price band we'd actually go after, before you engage us.
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