Media Release | Melbourne Land Prices Flatline, As Sales Volume Ticks Up

• Median land prices across Melbourne fell 0.8% in the March quarter, and are down 0.7% for the 12 months to the end of March.
• Quarterly sales (2,085) recorded a slight uptick from 1,954 in the December quarter, but remain well below historical averages.
• Melbourne’s land market continues to underperform other markets around the country, with economic and interest-rate concerns compounded by a stagnant established-home market.
• The median price in Melbourne remains below that in South East Queensland ($543,400), while Adelaide’s median price ($417,500) surged ahead for the first time.

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Melbourne’s land market continued to flatline in the first three months of the year, with prices dropping slightly as buyer confidence was dented by worsening interest rate expectations, according to new data from property services group Oliver Hume.

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Oliver Hume today released its latest quarterly sales and price data for the March quarter, which analyses thousands of land sales across key markets in Melbourne, South East Queensland and Adelaide.

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The research showed that while quarterly sales volumes rose for the first time in six months, the increased demand did not translate into higher prices with the median lot price falling 0.8% to $406,000 with prices almost the same as the March quarter in 2025 ($409,000).

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Oliver Hume Property Group Chief Executive Officer Julian Coppini said Melbourne’s land market volumes rose 40% in 2025, they remain nearly 40% below long-run averages.

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“The start of 2026 is really a continuation of what we have seen over the last three years with prices experiencing only minimal growth,” he said.

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“Victoria has had no price growth in the established housing market since 2021, with tax settings weakening investor confidence and capital growth, resulting in a significant increase in supply of established houses as investors exited.

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“Over this same period, new home and land prices have increased due to delivery cost increases, so we are seeing a big price break between new and established homes, which means buyers can buy an established home at a significant discount to a new home.”

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Oliver Hume Property Group Chief Economist Matt Bell said the March performance was not a bad result given the economic uncertainty.

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“Volumes were steady on December 2025 levels but 8% higher than March 2025 levels,” he said. “Prices were essentially flat, with the headline median down -0.8% and down -1.8% in $/sqm terms as the median land size increased marginally.”

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“Corridor level price growth was not surprisingly a mixed bag, with increases in the North  offset by softer prices in the West and South-East.

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“Like prices, the volume of sales also shifted north, with rises in Hume, Mitchell and Whittlesea, volumes steady in Casey and Cardinia in the South-East and down in Melton.

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ENDS

Media enquiries and interview requests to:

Mitchy Koper
M.koper@oliverhume.com.au 
0417 771 778

or

Lilly Mackay
l.mackay@oliverhume.com.au