Unit and apartment living is increasingly providing the first step on the property ladder for many Victorians.
The December 2025 quarter median data was released today by the Real Estate Institute of Victoria, showing growth for a fourth consecutive quarter across all major market segments.
More than half of Melbourne’s suburbs now record a median house price in excess of a $1million, with median unit prices outperforming houses across the state.
In regional Victoria, median unit prices rose 5%, the most robust quarterly increase since March 2021, pushing their values to a new record high and reinforcing the growing role of medium-density housing beyond metro Melbourne.
Houses in regional Victoria also reached new peak median price levels over the quarter to $643,000.
Across metropolitan Melbourne, the median unit and apartment price increased 2.0% over the quarter to $656,500, compared with a 1.8% rise in house prices to $973,500.
Annually, unit prices increased 2.1%, while house prices rose 3.8%.
Growth was strongest in Melbourne’s middle and outer rings.
Middle-ring (10-20km from the CBD) unit prices rose 2.9% to $747,500, the most significant quarterly increase since June 2023.
Meanwhile the outer-ring (over 20km from the CBD) unit prices climbed 2.5% to a new record median of $650,000.
Houses in outer Melbourne also recorded strong growth, rising 3.5% over the quarter.
Suburb-level results point to strong buyer demand, with 62 metropolitan suburbs recording double-digit quarterly growth in median unit prices, almost half of which were in Melbourne’s middle ring.
Albion led the market, with its quarterly median unit price nearly doubling to $557,800.
Buyer interest was also evident across suburban Melbourne, with Balwyn North, Oakleigh, Seddon, and Murrumbeena each recording median unit price increases of more than 50%.
Regional Victoria has embraced unit living, with strong quarterly growth of over 15% in towns such as Metung, Cobram, Maryborough, and Portarlington.
REIV CEO Toby Balazs said the data confirms both market growth and a structural shift in housing.
“Unit and apartment living is no longer a secondary option – it is a core part of Victoria’s housing mix, providing a more affordable entry point into the market,” Toby said.
“With constrained land and housing supply and sustained population growth, medium-density housing is an increasingly sought-after option,
“While it’s encouraging to see confidence returning to the market, addressing the core issue of supply and affordability through effective tax reform and investment incentives, will be essential in sustaining this momentum."
"These concerns will form a central pillar of the Institute’s agenda this year,” Toby concluded.
