New median price data from the Real Estate Institute of Victoria (REIV) for the June quarter 2026 (Q2 2026) shows that while Melbourne's housing market softened over the quarter, strong annual growth across outer Melbourne and regional Victoria reinforces the underlying strength of the Victorian market.
Against a backdrop of macro-economic uncertainty and policy changes, REIV's median prices recorded a quarterly decline in metro Melbourne. During Q2, median house prices fell 3.1 per cent to $952,500 and unit prices declined 2.1 per cent to $643,500, following five consecutive quarters of growth. Middle Melbourne suburbs largely drove this decline, with houses falling 4.5 per cent. Unit prices across middle and outer Melbourne both fell 2.3 per cent.
While quarterly conditions softened, annual figures highlighted the long-term resilience of Victoria's property market, with strong growth recorded across outer Melbourne and regional Victoria.
Outer Melbourne recorded the state's strongest annual house price growth, with fourteen suburbs featuring in the top 20 growth suburbs. The City of Melton led the rankings with Kurunjang reporting annual growth of 14.9 per cent, while the municipality accounted for five of the top 20 suburbs for house price growth.
Similarly, while Bayside's Hampton recorded the strongest annual unit price growth at 23.8 per cent, eight of the top 20 suburbs for unit growth were located in Melbourne’s outer ring, reinforcing the strength of the city's growth corridors.
Regional Victoria’s annual growth outperformed metropolitan Melbourne, with median house and unit prices rising 8.3 per cent to $650,000 and 9.0 per cent to $458,000 respectively. Growth was led by major regional centres, with Mount Helen in Ballarat recording a 27.2 per cent annual increase in house prices, while North Bendigo topped the state for annual unit price growth with a 39.2 per cent increase.
REIV CEO Toby Balazs said the quarterly figures highlighted the impact of major policy changes and the importance for governments to have a deep understanding of the roll-on impact.
"The quarterly data reflects the uncertainty currently affecting Victoria's property market, driven by higher interest rates, changing government policy, cost of living pressures and global economic instability.
"By contrast, the annual figures show that despite the volatile conditions we’re currently seeing, the property market remains resilient – particularly in outer Melbourne and regional Victoria.
Mr Balazs said the results reinforced the need to ensure stamp duty incentives for first home buyers keep pace with market conditions.
“Eighteen suburbs in the City of Melton and nine in the City of Hume recorded strong annual growth while remaining below the $750,000 stamp duty exemption threshold, demonstrating the high demand at that price point.
“However, as higher demand concentrates at this level prices for entry level houses are likely to continue rising.
“To keep the market accessible, it is increasingly important for the Government to review the first home buyer stamp duty exemption, so the threshold better reflects current property prices,” he said.
Media Contact: media@reiv.com.au - 03 9205 6607