Melbourne, the second-largest city in Australia, is renowned for its vibrant cultures, excellent food, coffee, and world-class education. The city has been consistently ranked among the world’s most livable cities, and it’s no surprise that many people flock to it to make it their home. However, as with any big city, the cost of living, particularly the median house price, can be daunting for some.
Today, we’ll explore how Melbourne’s median house price compares to other global cities around the world. Are we more expensive than New York and London, or are we more affordable than Paris and Tokyo? Let’s find out.
Factors that Affect Median House Prices
Before we dive into comparing Melbourne’s median house price to other global cities, it’s important to understand the factors that affect house prices. These include:
- Location – houses in the city center tend to be more expensive than those in suburban areas
- Housing Market Demand – when demand is high, house prices tend to increase
- Size and Condition of the House – larger and newer properties tend to be more expensive
- Economic Growth – when the economy experiences growth, house prices tend to increase
- Interest Rates – lower interest rates tend to push up housing demand, which in turn increases house prices
Median House Prices in Melbourne
Melbourne’s median house price as of June 2021 is $931,000, according to the Real Estate Institute of Victoria (REIV). This is a considerable increase, more than 70%, from ten years ago, but what about when compared to other global cities?
Melbourne vs. Other Global Cities
Compared to other global major cities, Melbourne’s median house price is less expensive, as illustrated in the table below:
| City | Median House Price (AUD) |
|---|---|
| Melbourne | $931,000 |
| Sydney | $1,410,133 |
| New York | $1,854,930 |
| London | $2,660,000 |
| Paris | $2,679,612 |
| Tokyo | $1,404,833 |
Although Melbourne’s median house price is lower than that of Sydney, it’s still considered expensive by many locals, especially first-time home buyers. However, when compared to other global cities, Melbourne’s house prices are more affordable.
FAQs
Q: How can I buy a house in Melbourne?
A: If you’re interested in buying a house in Melbourne, check out our Guide to Buying a House in Melbourne. Our comprehensive guide covers everything from finding the right property, to negotiating with real estate agents, to securing finance, and much more.
Q: Are house prices in Melbourne expected to go up or down?
A: It’s difficult to predict whether house prices will go up or down in the future. However, historically, Melbourne’s property prices have continued to increase over time, even during economic downturns.
Q: Will the COVID-19 pandemic affect Melbourne’s house prices?
A: The pandemic has undoubtedly affected the housing market, with some suburbs experiencing a drop in prices while others have seen a surge in demand. It’s hard to say what the long-term impacts will be, but we anticipate that Melbourne’s house prices will continue to remain stable.
Conclusion
Melbourne’s median house price is less expensive when compared to other global cities, such as London and Paris. However, the cost of living in Melbourne, including housing, is still relatively high, making it challenging for some to afford a home. Understanding the factors that impact house prices, as well as utilizing resources like our Guide to Buying a House in Melbourne, can help buyers make informed decisions to secure their dream home in this fantastic Australian city.
