27 October 2026
Victoria’s housing market remained subdued in September, with fewer sales, more properties listed and slower price growth, according to analysis by property researcher Cameron Kusher, published by the Real Estate Institute of Victoria. Rental conditions also eased, with slower rent growth and relatively higher vacancy rates. Higher interest rates and changes to property investment taxation have weighed on confidence nationally. Kusher also notes recent changes to how auctions operate in Victoria, and expects some vendors may choose other ways to sell.
Inflation remains above the Reserve Bank’s 2 to 3 per cent target. Official figures for August 2026 show headline inflation rose 4.0 per cent over the year, and the Bank’s preferred underlying measure rose 3.6 per cent. Housing had the highest annual inflation of all consumer price groups, at 5.7 per cent, while Melbourne recorded the lowest capital-city rate, at 3.5 per cent. In late September the Reserve Bank raised the cash rate by 25 basis points to 4.6 per cent. This was the fourth increase this year, taking the rate to a 15-year high, 100 basis points higher so far in 2026.
Melbourne’s median house price in September was $970,000, up 5.4 per cent over the month but 2.2 per cent lower than a year earlier. The median unit price was $640,000, up 0.8 per cent over the month but 1.9 per cent lower than a year ago. In regional Victoria, the median house price rose to $670,000 and the unit median was $450,000, both 4.7 per cent higher over the year. New listings in Melbourne rose 7.0 per cent in September compared with August, but were 13.9 per cent lower than a year earlier. Private sales took a median 45 days in Melbourne (35 a year earlier) and 54 days in regional Victoria (48 a year earlier).
The median weekly rent for both houses and units in Melbourne was $600, unchanged over the month, and 3.4 per cent and 4.3 per cent higher respectively than a year earlier. Regional house rents were $530 a week, up 6.0 per cent over the year. Vacancy rates were 2.5 per cent in both Melbourne and regional Victoria. Dwelling commencements in the June quarter rose to 16,239, the highest volume since March 2023. Kusher concludes that buyers currently have more choice and less competition, and that landlords should be cautious about lifting rents while renters’ budgets are already stretched by inflation.
Source: REIV
