Monthly Property News 3rd Edition 2026.

5 March 2026

“March property market report”

Here’s your property market wrap on the results from February 2026. We’ll cover home prices, rents, and what factors could affect sentiment across metropolitan Melbourne and Regional Victoria.

February continued the “two-speed” theme across Australia’s housing markets, with stronger momentum in the mid-sized capitals while Sydney and Melbourne largely stalled. Here’s the headline numbers from the month of February.

Melbourne dwelling values remained flat (0.0%) over February taking annual growth to 4.7% with a median dwelling value to $826,132.
Regional Victoria dwelling values rose +0.6% over the month, taking annual growth to 7.8% with a median dwelling value of $628,995.
National dwelling values rose +0.8% over the month, taking annual growth to 9.9%.

For Melbourne, the “flat month” result is a useful headline — but it doesn’t mean nothing is happening. It reflects a market where demand is being constrained by affordability and borrowing capacity, while supply remains tight enough to prevent broad-based falls

At the same time, sellers are clearly re-engaging. Freshly advertised stock through February was almost 12% above the five-year average in Melbourne, signalling that some vendors are moving earlier as conditions soften and competition for buyers increases.

Across Regional Victoria, conditions were firmer, which aligns with the broader pattern of regional areas outperforming capital cities, helped by lower price points and more resilient demand.

Even with the overall “flat” Melbourne outcome, several sub-markets have recorded strong annual gains. In Cotality’s list of the top 10 Greater Melbourne SA3 areas by annual dwelling value growth, standouts include:

Frankston: median $855,347, annual change +12.9%
Brimbank: median $730,641, annual change +10.3%
Sunbury: median $738,542, annual change +8.5%
Tullamarine Broadmeadows: median $742,178, annual change +8.1%
Kingston: median $1,097,024, annual change +8.1%
Dandenong: median $796,549, annual change +8.0%
Keilor: median $1,064,428, annual change +8.0%
Whittlesea/Wallan: median $782,675, annual change +7.6%

Regionally, Victoria’s strongest annual growth areas included:

Mildura, +17.5%, median $550,232
Latrobe Valley, +14.4%, median $493,543
Ballarat, +14.0%, median $632,554
Wodonga/Alpine, +13.2%, median $696,083

For the rental market growth has re-accelerated, but yields remain tight.

The National Rental Value Index rose 0.7% in February, with rents up 5.5% over the year, the strongest annual gain since the year ending October 2024.

The REIV reports that the median rental price in Metropolitan Melbourne for houses now sits at $580 per week and for units is sits at $575. Regional Victoria sits for $495 per week for houses and $400 per week for units.

Despite the recent stronger rent growth, cash flow remains challenging for property investors once compliance costs, holding costs and land tax is factored in.
For context here’s the Net Change in Rental Properties over the course of the last 6 to 7 years.

2018 to 2019 – An increase of 18,400 properties considered as normal growth.

2021 to 2022 – A Post-COVID Recovery with an increase of 21,000.

2023 to 2024 – First Major Decline with a decrease 24,726

2024 to 2025 – The Exit continues with a decrease of 3,398 (In Q1 alone)

With proposed capital gains tax changes back in the national conversation and the Reserve Bank leaving the door open to another rate rise at its 16–17 March 2026 meeting, investors are facing a more complex policy backdrop than at any point in recent years. The cash rate already rose to 3.85 per cent in February, and although market experts are pricing in a March increase, there is also a high probability of another rise in May if inflation growth doesn’t fall.

Remember, the information provided is of a general nature, always seek independent legal, financial, taxation or other advice in relation to your unique circumstances.

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