Melbourne’s housing market is showing renewed strength, with forecasts suggesting its median house price will top $1 million by summer. A strong spring selling season, coupled with high-demand hotspots like Frankston, is driving momentum after years of underperformance.
Key Takeaways
- Melbourne’s median house price is expected to surpass $1 million by summer 2025.
- Frankston is emerging as one of the country’s hottest investment suburbs.
- Demand is rebounding, with buyer inquiries lifting in 90% of Melbourne suburbs.
- Melbourne remains comparatively affordable compared to Sydney and Brisbane.
- Interstate investors and major infrastructure projects are fuelling renewed growth.
Frankston: A Standout Investment Hotspot
One of Melbourne’s biggest drawcards this spring is Frankston, a bayside suburb that has surged in popularity.
- Median house price has nearly doubled since 2015, now sitting at around $800,000.
- Infrastructure development and apartment approvals are reshaping the area.
- Analysts rank Frankston among the top property hotspots nationally.
“Something’s happening here and it’s become one of the hottest markets, certainly in the state, but also nationally,”
— Terry Ryder, Property Analyst
Ray White’s Chief Auctioneer Jeremy Tyrell also confirmed strong investor activity, particularly from interstate buyers, marking Frankston as a suburb “on the move.”
Melbourne’s Market Recovery
If Melbourne reclaims the $1 million benchmark, it will join Sydney and Brisbane in Australia’s million-dollar property club.
Eleanor Creagh, Senior Economist at PropTrack, said this milestone would reflect a strong recovery after years of sluggish performance.
“It’s somewhat of a milestone for Melbourne, not quite fully recovered, but almost fully recovered after what has been a prolonged period of several years of underperformance,”
— Eleanor Creagh, PropTrack
Indicators Point to Strong Spring Growth
Several market indicators suggest Melbourne’s property prices are set to rise further:
- Buyer inquiries per listing have risen significantly across the city.
- Close to 90% of Melbourne suburbs have recorded stronger inquiry levels over the past year.
- Improved affordability relative to Sydney and Brisbane is attracting more buyers.
As a result, many analysts expect price growth to accelerate during the spring selling season, setting Melbourne on track to hit the million-dollar milestone.
