Melbourne's Land Market starting to improve.

Melbourne’s land market is still performing below its long-term average, but recent data from Oliver Hume shows it is starting to improve. The city has an index score of 4.5 (out of 10), meaning it is still below its typical level of activity. Most other capital cities are now performing above theirs.

This weaker position is now creating better value for buyers, and activity is starting to increase. Melbourne land prices rose 4.1% over the 12 months to the December 2025 quarter while sales volumes increased by 24%. Total sales in 2025 were also 40% higher than the year before, making it the strongest year since 2022.

In addition, there is a backlog of demand. Land sales over the past three years have been well below underlying demand, and improved affordability is now bringing more buyers back into the market. This is expected to support further sales growth in 2026, along with established house price growth lifting from about 6% to as much as 8%.

This does not mean all parts of Melbourne will move the same way. As activity picks up, some areas will respond faster than others depending on supply, land availability and local conditions. Each property still needs to be assessed on its own merits.

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Clear, independent valuation advice is essential when changing land market conditions begin influencing residential values. To obtain evidence-based assessments across Whitehorse, Manningham, Maroondah and surrounding Melbourne councils, call Mason’s Valuation Office on 0417 741 481 or visit https://propertyvaluation.melbourne/about-us/#contact