Melbourne: Recovery and Value-Driven Demand

After a period of modest performance, Melbourne’s property market is expected to rebound into 2026, supported by strong population inflows and infrastructure spending on transport and urban renewal. Forecasts suggest Melbourne house prices could rise around 4–6% in 2026, with renewed demand for both inner-city apartments and outer growth corridors such as Melton, Wyndham and Donnybrook.

Infrastructure projects like Melbourne’s Metro Tunnel and suburban rail upgrades continue to enhance accessibility and support property demand near major transport nodes — a pattern reflected by elevated investor interest along established and emerging growth fronts. Improving affordability relative to Sydney is also attracting first-home buyers and downsizers back into the market.

Takeaway: Melbourne’s 2026 outlook is one of recovery + strategic demand, underpinned by infrastructure improvements and migration-fuelled population growth.