The dip in property values presents a varied impact on renters, landlords, and investors across Victoria, amidst a national challenge of scarce new properties and limited availability.
In comparison, Melbourne’s unit rental prices are more affordable than Sydney’s at $750 per week, and cheaper than Brisbane and Perth, both at $650. Meanwhile, Darwin units demand $598 weekly, aligning with Canberra’s rates. Only Hobart and Adelaide offer more economical unit options, priced at $480 and $525 per week, respectively.
Nicola Powell, Domain’s research and economics chief, shared with SBS News that Melbourne’s housing supply has outpaced that of other major cities.
In December, Melbourne recorded the highest vacancy rate among capitals, standing at 1.6 percent.
“In New South Wales, the investor participation rate is at 46 percent, highlighting a significant discrepancy,” Powell noted.
More first home buyers, fewer investors
“NSW sits at 46 per cent. So you can see there’s a vast difference in participation rates from investors.”
“If Victoria wants to stay competitive, we need to do more to encourage investment and create the conditions that encourage more homes to be built.”
National data
This was followed by Darwin, Canberra and Perth, where renting a house cost $700 per week on average.
Source: SBS News
The cost of renting a unit has increased across the board since December 2024.
“We have to remember that Australia is still operating in a landlord’s market, which means vacancy rates are below two per cent across every single capital city.”
How can cities be both liveable and affordable?
In 2025, Melbourne was ranked the fourth most liveable city in the world, followed by Sydney in sixth place and Adelaide in ninth.
According to 2025 Australian Bureau of Statistics data, Victoria accounted for 5,215 new home approvals in November out of the 18,406 reported nationwide. NSW followed with 4,848, while Queensland approved 4,558.
Does Melbourne offer lessons for other cities?
“You want to be building amenities and infrastructure, but at the same time not drive people out with escalating prices,” she said.
