Buying property In Melbourne with a dedicated expert

Purchase prices in Melbourne vary considerably by property type. The following figures are indicative medians drawn from publicly available market data (Domain, CoreLogic, Urban Property Australia, 2024–25).

• Detached house (metropolitan Melbourne): Median purchase price approximately AUD 947,000 to AUD 1,100,000 across the broader metropolitan area, depending on the data source and geographic scope. Inner-ring houses (within 10 km of the CBD) typically trade well above AUD 1 million; outer-ring houses can be found from AUD 500,000 to AUD 750,000.
• Unit / Apartment (metropolitan Melbourne): Median purchase price approximately AUD 615,000 to AUD 617,000 (Statista / Domain, 2023–24 data). One-bedroom apartments in the CBD and inner suburbs can be found from approximately AUD 350,000 to AUD 550,000; two-bedroom apartments in inner suburbs typically range from AUD 550,000 to AUD 900,000+.
• Townhouse: Positioned between detached houses and apartments in both price and format. Median prices broadly in the AUD 700,000 to AUD 1,100,000 range depending on suburb and size. Popular with downsizers and buyers seeking low-maintenance living with more space than a typical apartment.
• Off-the-plan apartment (new development): Prices vary widely by developer, location, and specification. Inner-city new apartments typically start from approximately AUD 450,000 to AUD 600,000 for a one-bedroom unit. Off-the-plan purchases are the primary option available to foreign buyers under current FIRB rules (from 1 April 2025).
• Luxury / prestige property (AUD 2 million+): Concentrated in suburbs such as Toorak, Brighton, Middle Park, Balwyn, and Hawthorn. The upper end of the market has shown selective resilience, with some premium suburbs recording price growth in 2024–25 despite broader market softness.

All figures are indicative medians. Individual property prices depend on land size, dwelling size, condition, aspect, and specific location. Buyers should obtain current comparable sales data from a licensed real estate agent or buyer's advocate before making purchasing decisions.

When purchasing property in Melbourne, the purchase price is only part of the total acquisition budget. Buyers must account for a range of additional costs that can add 5% to 8% — or significantly more for foreign purchasers — on top of the contract price.

• Land Transfer Duty (Stamp Duty): Victoria's primary purchase tax, levied by the State Revenue Office (SRO). General rates range from 1.4% to 6.5% of the dutiable value, with a flat rate of 5.5% applying to properties valued between AUD 960,001 and AUD 2,000,000 (SRO Victoria, 2025–26 schedule). A property purchased at AUD 1,000,000 attracts approximately AUD 55,000 in standard stamp duty.
• First Home Buyer Exemption: Eligible first home buyers may be fully exempt from stamp duty on purchases up to AUD 600,000, with a concession available on properties up to AUD 750,000 (SRO Victoria, 2025–26).
• Foreign Purchaser Additional Duty: Foreign persons pay an additional 8% surcharge on the dutiable value, on top of standard stamp duty. On a AUD 1,000,000 purchase, this adds approximately AUD 80,000, bringing the total duty to around AUD 135,000 (SRO Victoria, 2025–26).
• FIRB Application Fee: Foreign buyers must obtain Foreign Investment Review Board (FIRB) approval before signing a contract. Application fees are indexed annually; for residential property, fees vary by purchase price and are published by the Australian Taxation Office (ATO, 2025–26 schedule).
• Conveyancing / Legal Fees: Typically AUD 800 to AUD 2,500 for a standard residential purchase, plus disbursements of approximately AUD 200 to AUD 600 (title searches, council certificates, etc.).
• Building and Pest Inspection: Strongly recommended before exchange; typically AUD 400 to AUD 700 per inspection.
• Mortgage Registration and Transfer of Land Registration: Government fees payable to Land Use Victoria; amounts vary by property value.
• Lender Fees and Mortgage Insurance: If borrowing above 80% of the property value, Lenders Mortgage Insurance (LMI) applies and can add several thousand AUD to the total cost.
• Land Tax (ongoing): An annual state tax applies to investment properties in Victoria. The general threshold and rates are set by the SRO and reviewed annually; primary residences (principal place of residence) are exempt.

As a general rule, buyers should budget a minimum of 5% to 6% above the purchase price for transaction costs (for Australian residents), rising to 13% to 15% or more for foreign purchasers once FIRB fees and the foreign duty surcharge are included.

Thorough legal and technical due diligence is essential before committing to a property purchase in Melbourne. The following checks should be completed — ideally before exchange of contracts, and in the case of auctions, before bidding.

• Section 32 Vendor's Statement review: The Section 32 is the primary legal disclosure document in any Victorian property transaction. It must be prepared by the vendor's solicitor or conveyancer and provided to the buyer before signing. It contains: title and plan information (Register Search Statement, plan of subdivision), registered encumbrances (mortgages, caveats, easements, covenants), planning overlays and zoning, building permits issued in the past seven years, owners corporation (strata) details, outgoings (council rates, water rates), and any notices or orders affecting the property. Your conveyancer must review this document carefully for errors, omissions, or issues that could affect your purchase.
• Title search: A formal search of the Land Use Victoria register confirms the vendor's ownership, identifies any registered interests (mortgages, caveats, easements), and verifies the legal description of the property. Conducted by your conveyancer as part of the standard due diligence process.
• Building and pest inspection: An independent inspection by a licensed building inspector assesses the structural condition of the property, identifies defects (rising damp, roof issues, subsidence, illegal structures), and checks for evidence of timber pest (termite) activity. Fees typically range from AUD 400 to AUD 700. For auction properties, this must be arranged and paid for before the auction date. Buyers competing at multiple auctions may incur this cost several times.
• Owners corporation (strata) due diligence (apartments and townhouses): Review the owners corporation certificate, financial statements, meeting minutes, and insurance details. A specialist strata inspection report (approximately AUD 200 to AUD 400) can identify financial difficulties, unresolved disputes, or major upcoming capital works that could affect the value or liveability of the property.
• Planning and zoning checks: Verify the property's zoning and any applicable planning overlays (heritage, flood, bushfire, design and development overlays) through the Victorian Planning Authority or the relevant council. These can affect future development potential and permitted uses.
• Council and water authority searches: Confirm there are no outstanding notices, orders, or unpaid rates affecting the property. Conducted by your conveyancer as part of standard disbursements.
• Illegal structures and building permits: Check whether any structures on the property (extensions, decks, garages) were built with the required permits and comply with building regulations. Unpermitted works can create significant liability for the buyer post-settlement.
• FIRB compliance (foreign buyers): Confirm that the property type is eligible for foreign purchase under current FIRB rules before proceeding. From 1 April 2025, established dwellings are generally prohibited for foreign persons.

All legal and technical checks should be completed with the assistance of a licensed Victorian conveyancer or property solicitor. Do not rely solely on information provided by the selling agent, who represents the vendor's interests.

Melbourne's property market operates through two primary sale methods — auction and private sale (private treaty) — each requiring a distinct negotiation approach.

Auction: Auctions are the dominant sale method in Melbourne, particularly for houses in inner and middle-ring suburbs. Key features include:

• The property is marketed for a set campaign period (typically 3–4 weeks), with a public auction on a set date.
• Registered bidders compete openly; the highest bid above the vendor's reserve price wins unconditionally. Contracts are exchanged immediately and a deposit — typically 10% of the purchase price — is paid on the day.
• There is no cooling-off period for auction purchases. Buyers must complete all due diligence (Section 32 review, building inspection, finance approval) before bidding.
• If the property is passed in (reserve not met), the highest bidder has the first right to negotiate privately with the vendor after the auction.
• Effective auction strategy requires setting a firm maximum bid limit in advance, understanding comparable sales, and maintaining composure under competitive pressure.

Private Sale (Private Treaty): In a private sale, the vendor sets an asking price and buyers negotiate through the selling agent.

• Buyers may submit a written offer, which the agent presents to the vendor. Counter-offers and negotiation may follow.
• Offers can be made conditional on finance approval, a satisfactory building inspection, or other agreed terms, providing buyers with a degree of protection.
• A statutory 3 business day cooling-off period applies after the buyer signs the contract. Exiting during this period incurs a penalty of AUD 100 or 0.2% of the purchase price, whichever is higher (Consumer Affairs Victoria).
• Timing can be a useful negotiating tool in private sales — vendors who have held a property on the market for an extended period may be more receptive to lower offers or favourable conditions.

General negotiation principles:

• Research recent comparable sales (within the same suburb, similar property type and size) to establish a realistic price range before making any offer.
• Engage a conveyancer to review the contract before signing, regardless of sale method.
• A buyer's advocate can negotiate on your behalf and provide independent market intelligence, which is particularly valuable for buyers unfamiliar with Melbourne's market dynamics.
• Avoid disclosing your maximum budget to the selling agent, who represents the vendor's interests.