Melbourne is Australia’s second most expensive major property market. In April 2026, the median dwelling price in Greater Melbourne is approximately $940,000 for houses and $620,000 for units. To buy the median Melbourne house on a single income, you need approximately $145,000–$170,000 gross per year.
Melbourne Median Property Prices (April 2026)
| Property type | Approximate median price |
|---|---|
| Houses — Greater Melbourne | ~$940,000 |
| Units — Greater Melbourne | ~$620,000 |
| Houses — Inner Melbourne (≤10km) | ~$1,600,000–$2,800,000 |
| Houses — Middle ring (10–25km) | ~$950,000–$1,400,000 |
| Houses — Outer ring (25–50km) | ~$650,000–$950,000 |
| Units — Metro areas | ~$500,000–$750,000 |
Approximate estimates based on available CoreLogic and ABS data at April 2026.
Income Required by Property Type
| Property type | Price (est.) | 20% deposit | Loan | Monthly repayment (6%) | Income needed |
|---|---|---|---|---|---|
| Melbourne median house | $940,000 | $188,000 | $752,000 | $4,509 | ~$140,000–$165,000 |
| Melbourne median unit | $620,000 | $124,000 | $496,000 | $2,974 | ~$95,000–$110,000 |
| Inner Melbourne house (~$2M) | $2,000,000 | $400,000 | $1,600,000 | $9,591 | ~$290,000–$340,000 |
| Middle ring house (~$1.1M) | $1,100,000 | $220,000 | $880,000 | $5,276 | ~$160,000–$190,000 |
| Outer suburb house (~$750k) | $750,000 | $150,000 | $600,000 | $3,597 | ~$110,000–$130,000 |
Melbourne Affordability by Suburb Tier
Inner Melbourne (≤10km from CBD)
Suburbs: Richmond, Fitzroy, Carlton, Collingwood, South Yarra, St Kilda, Port Melbourne
- Median house price: $1,600,000–$2,500,000+
- Income required (single): $250,000–$380,000+
- Income required (couple): $320,000–$450,000+
Inner-Middle Ring (10–20km)
Suburbs: Brunswick, Footscray, Coburg, Essendon, Box Hill, Ringwood, Dandenong
- Median house price: $850,000–$1,400,000
- Income required (single): $130,000–$215,000
- Income required (couple): $170,000–$265,000
- Reality: Challenging but achievable for dual-income couples above $200,000 combined.
Outer Ring / Growth Corridors (25–50km)
Suburbs: Frankston, Cranbourne, Sunbury, Werribee, Melton, Wyndham
- Median house price: $600,000–$850,000
- Income required (single): $95,000–$135,000
- Income required (couple): $130,000–$175,000
- Reality: Melbourne’s most accessible house market for middle-income earners.
First Home Buyer Concessions in Victoria
| Concession | Detail |
|---|---|
| Stamp duty exemption | Properties up to $600,000 for FHBs |
| Stamp duty concession | $600,001–$750,000 (concessional rate) |
| First Home Guarantee | Up to $800,000 in VIC (5% deposit, no LMI) |
| First Home Owner Grant | $10,000 for new builds — regional VIC only |
Strategic note: At the median Melbourne house price of $940,000, FHBs no longer benefit from the stamp duty exemption ($600,000 threshold) and are above the stamp duty concession zone ($750,000). The First Home Guarantee cap is $800,000 in VIC, which closes out many median-price Melbourne houses.
This makes the $600,000–$800,000 range particularly attractive for Melbourne FHBs — capturing the concession and Guarantee benefit.
Deposit Requirements in Melbourne
| Purchase price | 20% deposit | Stamp duty (VIC, non-FHB) | Total savings needed |
|---|---|---|---|
| $700,000 | $140,000 | ~$37,070 | ~$181,000 |
| $800,000 | $160,000 | ~$43,070 | ~$207,000 |
| $940,000 | $188,000 | ~$51,870 | ~$244,000 |
| $1,200,000 | $240,000 | ~$67,070 | ~$312,000 |
Note: Victoria has among the highest stamp duty rates in Australia, adding significantly to upfront costs. A $940,000 property attracts approximately $51,870 in stamp duty for a standard owner-occupier.
How Melbourne Compares to Sydney
| Metric | Melbourne | Sydney |
|---|---|---|
| Median house price | ~$940,000 | ~$1,450,000 |
| Median unit price | ~$620,000 | ~$840,000 |
| FHB stamp duty exemption | To $600,000 | To $800,000 |
| First Home Guarantee cap | $800,000 | $900,000 |
| Income needed (median house, single) | ~$145,000–$170,000 | ~$220,000–$260,000 |
Melbourne is substantially more affordable than Sydney — the median house price is approximately 35% lower, and the income requirements reflect this.
Strategies for Melbourne Buyers
Target the $600,000–$800,000 range. For first home buyers, properties in this range capture the Guarantee benefit and may still have some stamp duty concession. Outer suburbs and growth corridors have many options here.
Consider units. At $620,000 median, Melbourne units are accessible on a single $95,000–$110,000 income with a modest deposit. This can be a stepping stone to later upgrading to a house.
Watch stamp duty. Victoria’s stamp duty is higher than NSW on equivalent properties. Buyers upgrading within Melbourne should factor significant stamp duty into their calculations.
Compare rent vs buy. Melbourne’s rental yields are modest (approximately 3.0–3.8% gross), but price-to-rent ratios have improved from the peaks of 2022–23. See our rent vs buy Melbourne analysis.
FAQ
What salary do you need to buy a house in Melbourne?
For the median Melbourne house (~$940,000), a single buyer with a 20% deposit ($188,000) needs approximately $140,000–$165,000 gross. Couples need $185,000–$210,000 combined. For outer suburb houses at $650,000–$800,000, a single income of $100,000–$130,000 is more achievable.
Is Melbourne affordable compared to Sydney?
Yes — Melbourne is notably more affordable than Sydney. Melbourne’s median house price (~$940,000) is approximately 35% below Sydney’s (~$1,450,000), and the income requirements differ proportionately. Melbourne also offers better housing diversity — detached houses at the metro median, compared to Sydney where the median house is in a significantly higher bracket.
Property prices are approximate, based on publicly available data at April 2026. For advice tailored to your situation, speak with a licensed mortgage broker. Find one through MoneySmart.