Melbourne’s unit market edged up slightly in Q3 2024, continuing its trend of marginal outperformance over houses. The current median unit price sits at $628,000—up just 0.2% for the quarter. Over the past two years, prices have largely held steady after the 2021 market cooldown. 

Regional performance remains mixed. The outer ring has shown remarkable stability, with little change in values over the past three years. The inner ring has recovered somewhat following a dip in mid-2023, while the middle ring continues to lag, hampered by limited affordable housing options. 

What’s Next for 2025? 

The outlook for unit prices remains uncertain. Interest rates have had a significant impact, especially in late 2022 and early 2023, and the market is in ‘wait and see’ mode. 

That said, Melbourne’s ongoing housing shortages—particularly in the inner and outer rings—are keeping demand steady. Low development activity and continued migration are key factors supporting the market. While headwinds persist, these pressures may help stabilise unit prices through mid to late 2025. 

This article references findings from our January 2025 Melbourne Apartments & Townhomes Market Report. Read the full report here.