Melbourne’s prestige market held steady through the third quarter of 2025, with property values in many of the city’s blue-chip suburbs showing resilience against softer sales activity and a more selective pool of buyers. While affordability remains a challenge and interest rate uncertainty continues to weigh on confidence, the appetite for quality homes in tightly held locations has kept the million-dollar benchmark intact across much of the city.
Lifestyle Locations Lead the Way
Demand remains strongest in suburbs offering lifestyle advantages – from premium school zones and leafy family pockets to bayside addresses with strong long-term appeal. This sustained interest has ensured that Melbourne’s most desirable suburbs continue to attract competitive buyer activity, even as the overall pace of the market moderates.
Transaction volumes across prestige suburbs were subdued in Q3, with several areas recording fewer than 25 house sales. This mirrors the broader market trend of limited stock availability, which in turn is helping underpin median values at the upper end of the market. As always, quarterly figures should be considered in context given these smaller sample sizes.
Where Are the Million-Dollar Suburbs?
The majority of suburbs surpassing the $1 million mark remain within Melbourne’s established inner and middle rings, or across the bayside corridor. These lifestyle-rich locations continue to set the pace for the city’s prestige market, highlighting their enduring popularity with both local buyers and investors.
Here is a current list of the suburbs that have home prices above a $1 million as at the September 2025:
Note: These are based on quarterly median house figures
* Denotes less than 30 sales in the quarter for the suburb
Source – This information has been collected by the Real Estate Institute of Victoria Ltd (REIV). The most authoritative source for information on the Victorian property market. * denotes less than 30 sales in the quarter
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more, please contact us. We welcome the opportunity to assist you.
