Melbourne Property Has Underperformed for 10 Years

Melbourne has been one of the most underperforming property markets in Australia over the past decade — but why? In this TPC Gold segment, we unpack the key factors behind Melbourne’s weaker performance compared to cities like Sydney, Brisbane and Adelaide. From the prolonged impact of COVID to ongoing policy changes, including tenancy reforms, energy efficiency standards and rising land tax, the environment for property investors has shifted significantly. We explore how these policy settings have contributed to a steady exit of investors from the market, with owner-occupiers increasingly dominating auctions in traditionally investor-heavy suburbs. With less competition from investors, some buyers are now finding more opportunities — and more confidence — in securing properties. But there’s another side to this story. Because Melbourne hasn’t experienced the same level of growth as other markets, it may also be less exposed if broader market conditions soften. For long-term investors, this raises an important question: is Melbourne simply underperforming… or setting up for its next cycle? * Timestamps* 00:00 Why Melbourne has underperformed 00:39 COVID impact and missed growth cycle 01:09 Why underperformance could limit downside 01:38 Government spending vs private demand 02:00 Policy changes and investor sentiment 02:54 Land tax and investor exodus 03:15 Owner-occupiers replacing investors 04:07 Why opportunities are emerging now 04:39 Market depth and buyer behaviour shifting P.S. This is just a snippet from our Ep 588 | Is THIS Australia’s ‘Best Value’ Property Market? – Chat with Greville Pabst. For the full scoop, check it out here 👉 https://thepropertycouch.com.au/ep588-australias-best-value-property-market-greville-pabst/ P.P.S. And feel free to send in your questions here 👉 https://thepropertycouch.com.au/topics/ We would love to answer them on the show! #ThePropertyCouch #TPCGold #Melbourne #PropertyTrends #AustralianProperty #Demographics #HousingMarket #PropertyInsights