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Autumn/26
Melbourne Prestige
Residential
Prestige residential sales
Prestige sales
Melbourne recorded a lower number of prestige residential sales above $3 million over the past year Sales trended down 36% with a total of 1,071 transactions in the year ending Q4/25, being outpaced by the five year annual average of 1,351 sales. Shifts in sales activity can be influenced by interest rates and economic confidence, with global uncertainty continuing to shape decisions being made Isolating the 466 sales in the Q4/25 quarter, this was 186% above the previous quarter and higher than the 450 five year quarterly average
Super-prestige sales
The share of super-prestige sales (above $5 million) was recorded at 31%, compared to the total number of prestige sales (above $3 million) across Melbourne in the year ending Q4/25. This was higher than one year ago when the proportion was 23%, and remains above the 20% share recorded five years ago Over the past year, Melbourne’s super-prestige sales volume has fallen by 16%, but grown over the past five years by 197%
Rolling tally of annual prestige residential sales Melbourne prestige ($3m+)
Share of super-prestige sales ($5m+), by number Melbourne prestige
Prestige residential sales
Duration +5 days
Melbourne prestige homes are taking more time to sell than one year ago Prestige homes across Melbourne averaged 81 days on market in the year ending Q4/25, from the time they were listed to the day they went under contract This duration was 82 days a quarter ago (-1 day) and 76 days one year ago (+5 days). A lower number of days on market typically indicates that homes are selling more quickly, often reflecting strong buyer demand and well priced, desirable properties In contrast, a higher number of days on market may signal slower buyer activity Looking back over the five-year average, it has taken 80 days to sell a home
Average days on the market Melbourne
New listings Melbourne Total listings
+15.5% -12.6%
More Melbourne homes have been newly listed for sale than this time last year. Newly advertised listings in Melbourne were 15 5% higher in the month of December 2025 than the equivalent period last year, according to Cotality. This change in new listings trended above the Australian average of 1 1% and above the 0 1% across Australian capital cities
Overall, the total number of homes listed for sale in Melbourne is down on last year. Melbourne's total number of listings in the month of December 2025 were 12 6% below the equivalent period last year, according to Cotality. By comparison, the Australian average change for total listings was -15 8% and across Australian capital cities was -14 4%
Melbourne prestige Prestige prices -1.3%
Tracking prestige prices
Melbourne residential property prices have trended lower than a year ago across the prestige market Melbourne prestige property prices fell by 1 3% in the year ending Q4/25, with a rise of 0 1% recorded in the last quarter Looking back at price growth since Q4/20, prestige apartments (17 2%) outpaced prestige houses (6 3%) over the five years. In Q4/25, prestige house prices were 1.0% lower and were 7 9% lower on the previous year In the same quarter, prestige apartment prices rose by 1 5% after rising 7 7% in the past year Annual residential price growth has averaged 2 2% over the past five years
Melbourne prestige Prestige price outlook +1%
Forecast for prestige prices
Looking ahead, Melbourne residential prestige prices are likely to fall over the coming year McGrath Research forecasts Melbourne prestige residential prices to reduce by 2% by the end of 2026, followed by a 1% rise in 2027 Factors taken into consideration include the projection of a challenged economy and business environment, a solid performing stock market, anticipated pressure on the interest rate target, as sales volume remain lowered.
prestige, Q4/25
change from a year ago
Prestige yield
+17 bps
Melbourne prestige gross rental yields have trended higher over the past year Residential gross rental yields rose 7 bps in the Q4/25 quarter to be 3 69% across the Melbourne prestige market, whilst being 17 bps more than a year ago. Gross rental yields are a good initial measure of comparing the return of a property investment before expenses are deducted A yield greater than 3% tends to be considered most desirable for prestige properties located in capital cities, while below this, tends to indicate high property prices relative to rent, or low rental demand Gross rental yields have averaged 3.20% over the past five years.
The number of residential rental homes in Melbourne is currently undersupplied. Melbourne rental vacancy was recorded at 2 4% at the end of Q4/25, falling 10 bps in the quarter whilst changing 0 bps over the past year according to REIA Generally, around 3% vacancy is considered a balanced market between rental supply and demand Below this equilibrium is considered to be an undersupplied pool of rental homes, which places upwards pressure on weekly rents. For the past five years, Melbourne residential rental vacancy has averaged 3 4%
Gross
from a year ago
Prestige rents
+4.2%
Tracking prestige rents
Melbourne prestige
Residential rents across Melbourne trended above the weekly prestige rate recorded a year ago Melbourne prestige property rents rose by 4 2% in the year ending Q4/25, with a rise of 2 2% recorded in the last quarter Looking back at rental growth over the five years since Q4/20, prestige apartments (51.4%) outpaced prestige houses (33 6%) Prestige apartment rents in Q4/25 were 1 9% above a quarter ago, and were 7.5% higher over the year. In the same quarter, prestige house rents rose by 2 3% after rising 1 6% over the past year On average, in the past five years, prestige rents grew 7 4% per year
Prestige rental outlook
+4%
The Melbourne prestige residential market is continuing to experience upward pressure on weekly rents A sustainable number of new homes have been built in Melbourne but only a modest number have been made available in the prestige rental pool. As a result, McGrath Research forecast there will remain upward pressure on rents of 5% at the end of 2026, with a further 4% rental growth likely in 2027
Forecast for prestige rents
Melbourne prestige
prestige, Q4/25
Definitions
Prestige property
The most desirable and most expensive property in a given location, generally defined as the top 5% of each market, by value.
Prestige sales
Melbourne prestige sale transactions hold a threshold of A$3 million
Super-prestige sales
Melbourne super-prestige sale transactions hold a threshold of A$5 million.
Wealthy population
A high-net-worth individual (HNWI) with a net worth of at least US$10 million.
Guiding
you home
Michelle Ciesielski
National Head of Research, McGrath Research
www.mcgrath.com.au/research
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