Did your suburb’s apartments beat inflation?
A decade of Melbourne apartment prices vs rents: 42 of 134 established suburbs didn’t beat inflation, and landlord yields quietly climbed — Carlton’s from 5.1% to 8.3%.
Over the decade to 2024, Melbourne apartment prices rose a median 38% while rents for a 2-bedroom flat rose 54% — so in 42 established suburbs, unit prices went backwards in real terms, and gross rental yields climbed sharply. Ranked by weakest price growth first.
| Suburb | Unit median (2014 → 2025) | Price change | Rent change | Gross yield (then → now) |
|---|---|---|---|---|
| Carlton | $466,000 → $413,000 | -11% | +44% | 5.1% → 8.3% |
| Abbotsford | $550,000 → $535,000 | -3% | +44% | 4.5% → 6.7% |
| Flemington | $411,666 → $408,000 | -1% | +42% | 4.8% → 6.9% |
| Docklands | $598,166 → $600,833 | +0% | +40% | 4.7% → 6.5% |
| South Yarra | $581,166 → $586,666 | +1% | +43% | 4.4% → 6.2% |
| Prahran | $530,166 → $547,500 | +3% | +42% | 4.3% → 6.0% |
| Parkville | $517,000 → $538,333 | +4% | +44% | 4.6% → 6.4% |
| St Kilda | $495,500 → $527,666 | +6% | +46% | 4.5% → 6.1% |
| Southbank | $567,833 → $605,333 | +7% | +35% | 4.9% → 6.2% |
| Richmond | $549,000 → $587,166 | +7% | +41% | 4.7% → 6.2% |
| Armadale | $670,833 → $718,500 | +7% | +62% | 3.0% → 4.6% |
| North Melbourne | $513,666 → $552,500 | +8% | +45% | 4.6% → 6.1% |
| Canterbury | $1,005,333 → $1,085,000 | +8% | +44% | 2.0% → 2.7% |
| Port Melbourne | $703,333 → $760,666 | +8% | +31% | 4.1% → 4.9% |
| Ascot Vale | $497,500 → $540,000 | +9% | +54% | 3.7% → 5.2% |
| Seddon | $436,166 → $474,000 | +9% | +59% | 3.8% → 5.6% |
| Hawthorn | $538,333 → $591,000 | +10% | +47% | 3.9% → 5.1% |
| Windsor | $506,833 → $558,500 | +10% | +42% | 4.5% → 5.9% |
| Bundoora | $418,000 → $466,666 | +12% | +51% | 4.0% → 5.4% |
| Doncaster | $567,000 → $638,500 | +13% | +52% | 3.5% → 4.8% |
| Elwood | $587,000 → $667,666 | +14% | +47% | 3.6% → 4.7% |
| Murrumbeena | $515,166 → $593,000 | +15% | +48% | 3.8% → 4.9% |
| Burwood East | $566,666 → $653,166 | +15% | +63% | 3.2% → 4.5% |
| South Melbourne | $555,833 → $644,000 | +16% | +34% | 4.8% → 5.5% |
| Essendon | $481,000 → $559,000 | +16% | +48% | 3.7% → 4.7% |
Data as of 2026-07-07. Suburb-level indicators — confirm the specific parcel.
What the data shows
The weakest performers are almost all inner-city, investor-grade apartment markets — Carlton, Docklands, Southbank, Abbotsford, South Yarra. These are exactly the areas that saw the most high-rise building over the decade, and heavy new supply held prices flat while houses in the same suburbs surged. Carlton unit prices actually fell 11% over ten years.
Rents told the opposite story — up 40–60% almost everywhere as vacancy tightened. Because prices stalled while rents jumped, gross rental yields climbed sharply: Carlton’s went from roughly 5.1% to 8.3%. The takeaway for buyers is a caution about capital growth on generic apartments in supply-heavy areas; for investors, it’s that the income case has quietly improved. See each suburb’s price and rent history on its Delora profile, and where the next wave of supply is landing in the apartment-glut ranking.
Frequently asked
Did Melbourne apartments go up in value over the decade?
Only weakly. The median established unit market rose about 38% over the ten years to 2024 — barely ahead of inflation (roughly 28%). In 42 of the 134 suburbs analysed, apartment prices did not beat inflation at all, and in a handful they fell in nominal terms.
Why did apartment prices lag houses?
The suburbs with the weakest apartment growth are mostly inner-city areas that saw a lot of new high-rise supply. Abundant new stock competes with existing apartments and holds prices down, while the scarce commodity — land under houses — kept appreciating.
What is a good gross rental yield?
Gross yield is annual rent divided by price. Melbourne houses often sit around 2–3%; apartments higher. Because apartment prices stalled while rents rose, several inner-city unit yields have climbed past 6%, and Carlton’s to about 8% — though yield is only part of the return, before costs and capital growth.