Melbourne apartment prices post strongest annual growth since 2022

The median apartment sale price rose 2.9% to reach AUD620,000.

Melbourne's apartment market continued to strengthen in the first quarter of 2026, with prices recording their strongest annual growth since mid-2022, according to JLL.

The city recorded just over 1,400 apartment completions during the quarter, while around 4,000 units remain under construction and are scheduled for completion this year. More than 1,000 of those units are located in outer Melbourne precincts.

JLL reported that Melbourne's median apartment sale price reached AUD620,000, representing annual growth of 2.9%, the highest annual growth since mid-2022. Rental performance also remained positive, with median apartment rents increasing 3.6% year-on-year to AUD575 per week.

Apartment rents have now overtaken house rents across greater Melbourne, where median house rents fell 1.7% year-on-year to AUD570 per week.

The city's rental vacancy rate stood at 1.6% in February 2026, below the long-term average of 2.3%, indicating tighter market conditions despite Melbourne retaining the highest vacancy rate among Australia's largest cities.

Transaction volumes softened during the quarter, while new apartment leases fell 41.6% from a year earlier as renters opted to remain in existing accommodation amid rising rental costs.

According to JLL, Melbourne's established market fundamentals should support further price, rental and transaction growth over time. While apartment completions are expected to increase in 2028 and 2029, the consultancy cautioned that much of the future pipeline remains tentative and may be affected by market conditions. A growing build-to-rent pipeline is expected to help address demand generated by ongoing population growth.