It’s been an interesting first half of the year for the Melbourne property market. After a period of stagnation, we’re starting to see momentum return — particularly in suburbs with $1M+ price tags.

According to recent PropTrack data, suburbs like West Melbourne have seen prices rise by 8%, with Parkville, Clayton, and Huntingdale also recording solid growth of around 5%. These are areas that typically attract buyers looking for strong fundamentals: proximity to transport, lifestyle precincts, and access to universities or medical precincts.

What’s driving this growth?

In part, it’s the broader shift we’re seeing across the country. After years of what economists described as a “two-speed market” — with cities like Brisbane and Adelaide surging ahead while Melbourne lagged — the gap is now starting to close. Melbourne is re-entering a more stable growth phase, helped along by recent interest rate cuts and improved buyer confidence.

That said, affordability is still a key constraint for many buyers. Which is why we’re also seeing continued strength in Melbourne’s north-west corridor, particularly in Dallas, Broadmeadows, and Coolaroo. These suburbs are currently among Victoria’s most in-demand, with median house prices sitting below $700,000 — offering a more accessible entry point for first home buyers and investors alike.

It’s also worth noting that homes in Melbourne’s outer east — including Kilsyth South and Belgrave Heights — are selling fast, often in just over two weeks. That’s well ahead of the national median selling time of 37 days, suggesting strong local demand and limited stock.

Overall, we’re seeing both ends of the market — prestige and affordable — perform well in different ways. And with further interest rate cuts on the horizon, it’s likely that this recovery will continue to build momentum into the second half of the year.