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Summer 25/26
Melbourne Prestige
Residential
Prestige sales
Melbourne prestige residential sale transactions above $3 million tallied to 166 in Q3 2025, being 41% lower than the previous quarter This was shaped by a lower number of properties listed for sale across the market whilst global uncertainty continues to have an impact on decisionmaking Over the past year, the total number of prestige sales was 53% lower, reaching 934 sales. As a benchmark, over the past five years, the annual average was 1,306 sales
Super-prestige sales
The share of super-prestige sales (above $5 million) was recorded at 26%, compared to the total number of prestige sales (above $3 million) across Melbourne in the year ending Q3 2025. This was higher than one year ago when the proportion was 25%, but remains above the 18% share recorded five years ago Over the past year, Melbourne’s super-prestige sales volume has fallen by 49%, but grown over the past five years by 159%
Tracking the total number of prestige sales ($3m+) each quarter
Melbourne prestige
Share of super-prestige sales ($5m+), by number
Melbourne prestige
Duration +10 days
Prestige homes across Melbourne averaged 82 days on market in the year ending Q3 2025, from the time they were listed to the day they went under contract This duration was 83 days a quarter ago (-1 day) and 72 days one year ago (+10 days) A lower number of days on market tends to mean homes are selling faster with more desirable properties, while a higher number of days suggests a slower market with above market values. Looking back over the five-year average, it has taken 80 days to sell a home
Tracking average days on the market
Newly advertised property listings in Melbourne were 2 3% lower in the month of September 2025 than the equivalent period last year, according to Cotality This change trended above the Australian average of -10.3% and above the -11 2% across Australian capital cities
Melbourne’s total number of listings in the month of September 2025 were 15.4% below the equivalent period last year, according to Cotality By comparison, the Australian average change for total listings was -13.3% and across Australian capital cities was -13 6%
Melbourne prestige property prices fell by 1 7% in the year ending Q3 2025, with a fall of 0 9% recorded in the last quarter Looking back at price growth since Q3 2020, prestige apartments (16 5%) outpaced prestige houses (9 2%) over the five years. In Q3 2025, prestige house prices were 3 3% lower and were 7 5% lower on the previous year In the same quarter, prestige apartment prices rose by 2.2% after rising 5 9% in the past year Annual residential price growth has averaged 2 5% over the past five years
Looking ahead, McGrath Research forecasts Melbourne prestige residential prices to decrease by 1% by the end of 2025, followed by a 1% rise in 2026. Factors taken into consideration include the projection of a stronger economy and business investment, a solid performing stock market, anticipated future reductions in the interest rate are likely to be deferred, as sales volume remain lowered
Residential gross rental yields rose 3 bps in the Q3 2025 quarter to be 3 62% across the Melbourne prestige market, whilst being 14 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 16% over the past five years
Melbourne residential rental vacancy was recorded at 2 5% in Q3 2025, remaining stable in the quarter but 20 bps higher 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 Over the past five years, rental vacancy has averaged 3 2% per year
Tracking gross rental yield
Tracking residential rental vacancy
Melbourne prestige property rents rose by 2.6% in the year ending Q3 2025, although with a fall of 0 1% recorded in the last quarter Looking back at rental growth over the five years since Q3 2020, prestige apartments (43 3%) outpaced prestige houses (34 9%) Prestige apartment rents in Q3 2025 were 1.5% above a quarter ago, and were 7.9% higher over the year In the same quarter, prestige house rents fell by 1.3% after falling 1.7% over the past year. On average, in the past five years, prestige rents grew 7 0% per year
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 3% at the end of 2025, with a further 2% rental growth likely in 2026
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.
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Michelle Ciesielski
National Head of Research, McGrath Research
www.mcgrath.com.au/research
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