An analysis of transaction volume in Melbourne at various price points over the 12 months to December 2025 show that high transaction volumes are concentrated at price points that align with the first home buyer stamp duty discounts.
Note: only including residential sales under $2m in 2025
| Sold Price | Number of Sales |
|---|---|
| $600,000 | 1197 |
| $700,000 | 1110 |
| $650,000 | 1090 |
| $750,000 | 1057 |
| $800,000 | 994 |
| $720,000 | 869 |
| $620,000 | 796 |
| $850,000 | 794 |
| $680,000 | 782 |
| $630,000 | 781 |
New analysis from the REIV shows the $600,000 threshold is now shaping buyer behaviour and concentrating demand, with only around 23 per cent of Melbourne sales falling under the cap.
The most common sold price in Melbourne over 2025 was $600,000, a number that aligns perfectly with the first home buyer stamp duty discount threshold. If you are a first home buyer, you can claim an exemption or concession from land transfer (stamp) duty if you meet certain criteria.
If you buy a Victorian home with a dutiable value:
up to $600,000, you pay no duty
$600,001 to $750,000, you pay a reduced amount of duty.
The property can be a new or established home, or vacant land intended for building your first home. Find out more
The analysis shows, the number of transactions at the price point of $550,000 are almost half the most frequent sale price and also significantly less than the number of homes sold for $650,000. Potentially, the stamp duty exemptions for properties up to $600,000 create a concentration of demand pushing prices for some types of homes up to the cap. On the other hand, buyers may also seek to maximise value by extending budgets to $600,000 while taking advantage of the stamp duty exemptions.
REIV CEO Toby Balazs has called for a significant review of Victoria’s first-home buyer stamp duty concession caps, warning they are no longer aligned with current market conditions. The REIV is urging a review to better reflect today’s prices and ease pressure on entry-level housing.
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