City of Melbourne Property Market Guide 2026

Property prices across City of Melbourne's 10 suburbs span from $1.1M to $1.1M, with a median sitting around $1.1M. This price dispersion indicates meaningful variation in market conditions from one suburb to the next.

City of Melbourne operates in the premium end of the Australian property market. At this price point, capital growth tends to be driven by scarcity, lifestyle appeal, and proximity to major employment centres rather than by broad demand-supply imbalances. Suburb selection becomes even more important in premium markets.

The median house price across City of Melbourne currently sits at approximately $1.1M (based on 2016 rolling data), reflecting upward price movement relative to broader state trends. This figure represents the midpoint of all suburb-level median prices within the LGA and can be influenced by the mix of transactions in any given period.

Prices across City of Melbourne show relatively limited dispersion, suggesting a more homogeneous market where suburb-level differences stem more from property quality and lot size than from fundamentally different demand drivers.

Employment in City of Melbourne is anchored by Professional, Scientific and Technical Services, Financial and Insurance Services, Public Administration and Safety. The concentration in fewer industries means property demand may be more sensitive to sector-specific economic shifts. Local residents commute an average of 9 minutes, primarily by walk, which influences which suburbs command premiums based on transport access.

Population trends in City of Melbourne have shown signs of softening. For investors, this places greater emphasis on picking suburbs with independent demand drivers — such as proximity to major employers, transport upgrades, or urban renewal — rather than relying on broad demographic tailwinds.

Infrastructure investment in City of Melbourne includes 46 identified projects with a total estimated value of $39.4B. The current level of investment is modest relative to population size, which may limit transformative infrastructure impacts in the near term. Suburbs adjacent to active projects often see anticipatory price movement ahead of completion.

Supply in City of Melbourne has been constrained, with new additions representing less than 0.1% of existing stock. Supply-constrained markets can support price growth as buyer competition intensifies, but investors should consider whether constraints are temporary (planning delays) or structural (limited developable land).

Recent development activity has been concentrated in suburbs including Carlton (Vic.), Docklands, East Melbourne. Understanding the supply pipeline at the suburb level is particularly important in City of Melbourne, as localised oversupply can affect individual suburbs even when the broader LGA appears balanced.

Not all 10 suburbs in City of Melbourne will suit the same investment strategy. The divergence across suburbs is driven by factors including median price, recent growth trajectory, proximity to employment, and local supply conditions.

Suburb-level analysis is essential in City of Melbourne. Our detailed suburb scores factor in price trends, rental yields, vacancy rates, and demographic indicators for each of the 10 suburbs to help investors match their strategy to the right micro-market.

Risk in City of Melbourne is less about the region itself and more about how precisely buyers select suburbs and properties.

Even in a high-scoring LGA like City of Melbourne, not every suburb will deliver equally. The risk of overpaying in a popular area is real, and investors should verify that growth metrics are sustainable rather than a one-time correction. Past performance at the LGA level does not guarantee future suburb-level results.

Declining population trends add a layer of risk. Without growing demand, property values become more dependent on external factors such as infrastructure spend or lifestyle shifts. Suburbs with independent appeal — such as proximity to a regional hospital or university — may prove more resilient.