On March 17, Oliver Hume released a new report on Australia’s residential land market. One of the key findings is that Melbourne has become the most affordable major city in the country for land, for the first time in recent years.

📜 It is important to understand the context. This is not about a sharp decline in prices, but rather a relative position among cities. While land prices in other major Australian markets have grown more rapidly, Melbourne has shown more moderate growth over the past few years. As a result, it now stands as the most accessible market among the largest cities.

📊 According to the report, the median price of a land plot in Melbourne is around AUD 408,000. Annual growth is approximately 4%, which is significantly lower than in several other regions across the country.

At the same time, transaction volumes remain below average levels:

— around 2,100 sales per quarter
— approximately 9,000 transactions per year
— more than 40% below the long-term average

📈 This dynamic has shaped the current situation. On one hand, the market is not overheated. On the other, there is still a substantial level of unmet demand that has not yet fully materialized.

📍 In practice, this changes how Melbourne is perceived. While it was previously considered one of the most expensive markets, it is now increasingly viewed as a more affordable entry point among Australia’s major cities.

This becomes even more evident when compared to other regions:

— Perth is showing some of the strongest price growth
— South East Queensland remains in a phase of high demand
— Adelaide continues to experience steady price increases

Against this backdrop, Melbourne appears to be a market that has not yet completed its recovery cycle.

📊 The report also highlights the potential for increased activity in the near term. Transaction volumes are expected to grow by around 20% over the next year as buyers and investors return to the market.

🏗 Demand is primarily shifting toward detached housing rather than apartments. Buyers are focusing on more affordable land plots and houses in the lower and mid-price segments.

⚖️ It is important to note that current affordability is not a sign of market weakness, but rather the result of slower growth in previous years. In such conditions, markets often become attractive entry points before the next growth cycle begins.

📊 Historically, similar periods tend to lead to several outcomes:

— gradual return of demand
— increase in transaction volumes
— subsequent price growth as the market recovers

🏡 As a result, Melbourne is increasingly seen not as an expensive and overheated market, but as one of the few major cities in Australia that still offers relative affordability along with potential for future growth. You can explore available properties in Australia on our website.