Melbourne A More Affordable Capital City

Melbourne’s housing is relatively more affordable than other capitals, largely because more homes have been built over time. According to Ray White, Victoria has delivered more housing than any other state, accounting for just over 30% of new homes nationally in the past decade despite only 27% of population growth. 

This higher level of supply has kept price growth to just 11% over five years, the lowest of any major capital.

At the same time, rental conditions tell a different story. Ray White chief economist Nerida Conisbee says rental bonds have fallen by more than 20,000 over a year, while rents have risen 35% over five years, showing how pressure has shifted from prices to rents.

This creates a split market. Asset values reflect slower capital growth, while income performance is being driven by tighter rental supply.

Private lenders, insurers and liquidators operating across Whitehorse, Boroondara, Maroondah, Darebin, Merri-bek and Nillumbik need to account for this shift. Valuations should consider both subdued price growth and stronger rental dynamics, particularly in investor-sensitive markets

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Supply-driven markets require a different valuation lens, especially where price and rental trends are moving in opposite directions. Understanding both capital value and income performance is key to assessing risk. For accurate reports, call Mason’s Valuation Office on 0417 741 481 or visit https://propertyvaluation.melbourne/about-us/#contact