Unit and apartment living is increasingly providing the first step on the property ladder for many Victorians.
December 2025 quarter median data released today by the REIV shows growth for a fourth consecutive quarter across all major market segments. More than half of Melbourne’s suburbs now record a median house price in excess of a $1million, with median unit prices outperforming houses across the state.
In regional Victoria, median unit prices rose 5 per cent, the most robust quarterly increase since March 2021, pushing their values to a new record high and reinforcing the growing role of medium-density housing beyond metro Melbourne. Houses in regional Victoria also reached new peak median price levels over the quarter to $643,000.
Across metropolitan Melbourne, the median unit and apartment price increased 2.0 per cent over the quarter to $656,500, compared with a 1.8 per cent rise in house prices to $973,500. Annually, unit prices increased 2.1 per cent, while house prices rose 3.8 per cent.
Growth was strongest in Melbourne’s middle and outer rings. Middle-ring (10-20km from the CBD) unit prices rose 2.9 per cent to $747,500, the most significant quarterly increase since June 2023, while outer-ring (over 20km from the CBD) unit prices climbed 2.5 per cent to a new record median of $650,000. Houses in outer Melbourne also recorded strong growth, rising 3.5 per cent over the quarter.
Suburb-level results point to strong buyer demand, with 62 metropolitan suburbs recording double-digit quarterly growth in median unit prices, almost half of which were in Melbourne’s middle ring. Albion led the market, with its quarterly median unit price nearly doubling to $557,800. Buyer interest was also evident across suburban Melbourne, with Balwyn North, Oakleigh, Seddon, and Murrumbeena each recording median unit price increases of more than 50 per cent.
Regional Victoria has embraced unit living, with strong quarterly growth of over 15 per cent in towns such as Metung, Cobram, Maryborough, and Portarlington.
REIV CEO Toby Balazs said the data confirms both market growth and a structural shift in housing.
“Unit and apartment living is no longer a secondary option – it is a core part of Victoria’s housing mix, providing a more affordable entry point into the market” Mr Balazs said.
“With constrained land and housing supply and sustained population growth, medium-density housing is an increasingly sought-after option,
“While it’s encouraging to see confidence returning to the market, addressing the core issue of supply and affordability through effective tax reform and investment incentives, will be essential in sustaining this momentum. These concerns will form a central pillar of the Institute’s agenda this year.”
Media Contact: media@reiv.com.au - 03 9205 6607