Melbourne property market heats up as buyers rush into affordable suburbs ahead of promising 2026 outlook
Rob Panetta from Lux Buyers Agents discussed the current state of Melbourne’s property market, noting increased buyer activity and competition due to multiple bidders at auctions. Both first-time buyers and investors are showing significant interest in the market.
Affordability is a key driver for investor behavior. Melbourne’s property values attract interest from interstate investors who recognise the city as undervalued, especially compared to areas in Sydney and Western Australia. Panetta highlighted that 2026 is expected to be pivotal for Melbourne’s property sector.
Active Suburbs
Areas like Faulkner, Hadfield, Glenroy, and parts of Keylor East and Avondale Heights are seeing notable activity due to first home buyer incentives. The Frankston area and regional hubs like Ballarat, Bendigo, and Geelong also showcase strong buyer demand.
Home purchases are favoured over apartments, which Panetta advises against unless for lifestyle choices. Many older apartments have decreased in value, whereas land acquisition within budget is recommended for clients.
