Melbourne has emerged as a leading city for first-home buyers in Australia, with a significant number of homes available within an accessible price range. For those willing to adjust their expectations, nearly half of the properties sold in the city last year were priced under $750,000, including many inner-city apartments and units.
This trend is supported by a recent analysis conducted by property technology and research platform Found It, which highlighted Melbourne as one of the few capital cities maintaining a viable entry-level market. The city has addressed some of its affordability issues by increasing the construction of high-rise buildings, according to analyst Kent Lardner.
Market Dynamics and Opportunities
Melbourne’s status as a less attractive market for investors in recent years has inadvertently benefited first-home buyers. “There have been numerous case studies of investors not getting capital growth and even some selling for a loss, but the flip side to that is that it has meant there are great opportunities for first-home buyers,” Lardner explained.
“Melbourne is the best value for first-home buyers among the major capitals, by quite some margin.”
Data from PropTrack reveals approximately 60 suburbs with median house prices of $700,000 or less, including Broadmeadows, Hampton Park, Frankston North, Melton, St Albans, Wallan, and Werribee. This availability of affordable housing options makes Melbourne a prime location for those entering the property market.
Expert Advice for First-Time Buyers
Frank Valentic, director of Advantage Property Consulting, advises potential buyers with a budget of $700,000-$750,000 to consider suburbs such as Werribee, Deer Park, Sunshine North and West, Ardeer, Epping, South Morang, Mill Park, or Craigieburn. However, he cautions against some outer northern and western areas due to perceived high crime rates.
“Buy the worst property on the street and not the other way around,” Valentic suggests. He also recommends renting in a new area before buying to avoid costly mistakes from unfamiliarity. For those seeking an inner-city lifestyle, opting for a unit in a middle suburb rather than a high-rise apartment is advised, as land remains a crucial factor for future price growth.
“Land is always king, so buying an apartment or unit with some land attached such as an outdoor courtyard will give you a much better chance of positioning yourself for good future price growth.”
Valentic also emphasizes the importance of checking the fine print when purchasing a strata apartment, noting the potential for high owners’ corporation fees and the need to verify if carparks and courtyards are included in the property’s title.
Real Estate Trends and Buyer Expectations
Mark Burke from OBrien Frankston highlights that buyers can find multiple houses priced below $750,000 in areas like Frankston North. These homes are often solidly-built, three-bedroom structures with proximity to the beach, freeway, train station, and shops. However, he warns that buyers with limited budgets should manage their expectations.
“I suppose beggars can’t be choosers, I don’t mean that in a rude way, but it’s champagne taste and beer money. You have to start somewhere and you can’t expect to start at the top.”
Suburban Breakdown by Price Bracket
The following list outlines Melbourne suburbs with the largest share of transactions within various price brackets, providing a snapshot of where buyers can find homes within their budget:
- Below $500,000: Melbourne CBD, Southbank, Dandenong, Werribee, Footscray
- $500,000 to $750,000: Tarneit, Pakenham, Craigieburn, Werribee, Sunbury
- $750,000 to $1m: Berwick, Point Cook, Craigieburn, Reservoir, Frankston
- $1m to $1.5m: Rowville, Berwick, Preston, Mt Waverley, Mulgrave
- $1.5m to $2m: Mt Waverley, Doncaster East, Glen Waverley, Bentleigh East, Doncaster
- $2m-plus: Glen Waverley, Mt Waverley, Balwyn North, Mt Martha, Essendon
This data, sourced from Found It, reflects the distribution of transactions across Melbourne in 2025, offering valuable insight for prospective homebuyers.
As Melbourne continues to attract first-home buyers with its affordable housing options, the city’s real estate market remains a dynamic and promising landscape for those looking to invest in their first property.
