Did your suburb's apartments beat inflation?
Over the decade to 2024, the median Melbourne apartment rose in value by 38% — while rent for the same class of property rose 54%. That gap is the whole story of this page: in 42 of the 134 established unit markets we can measure over a full decade, apartment prices didn't even beat inflation (roughly 28% over the period), while rents comfortably outran it almost everywhere. If you bought an apartment in one of these suburbs purely for capital growth, the last ten years have been a quiet disappointment. If you're a landlord, the income side of the ledger has quietly gotten much better.
The headline numbers
- 134 established Melbourne unit markets analysed over the full decade to 2024/25
- 42 of them saw apartment prices fail to beat inflation (~28% over the period)
- +38% median unit-price rise metro-wide, against +54% for rents on the same property type
- Carlton's gross rental yield went from 5.1% to 8.3% — the sharpest yield expansion of any suburb, driven almost entirely by prices standing still while rent kept climbing
The suburbs where apartments went backwards or sideways
Three suburbs saw apartment prices fall in nominal terms over the decade, and a further 39 rose by less than the ~28% CPI benchmark — meaning apartment owners in these suburbs lost purchasing power on the asset even before accounting for holding costs.
| Suburb | Council | Unit median 2014 → 2025 | Price change | Rent change | Gross yield then → now |
|---|---|---|---|---|---|
| Carlton | Melbourne | $466,000 → $413,000 | -11% | +44% | 5.1% → 8.3% |
| Abbotsford | Yarra | $550,000 → $535,000 | -3% | +44% | 4.5% → 6.7% |
| Flemington | Melbourne | $411,667 → $408,000 | -1% | +42% | 4.8% → 6.9% |
| Docklands | Melbourne | $598,167 → $600,833 | +0% | +40% | 4.7% → 6.5% |
| South Yarra | Stonnington | $581,167 → $586,667 | +1% | +43% | 4.4% → 6.2% |
| Prahran | Stonnington | $530,167 → $547,500 | +3% | +42% | 4.3% → 6.0% |
| Parkville | Melbourne | $517,000 → $538,333 | +4% | +44% | 4.6% → 6.4% |
| St Kilda | Port Phillip | $495,500 → $527,667 | +6% | +46% | 4.5% → 6.1% |
| Southbank | Melbourne | $567,833 → $605,333 | +7% | +35% | 4.9% → 6.2% |
| Richmond | Yarra | $549,000 → $587,167 | +7% | +41% | 4.7% → 6.2% |
| Armadale | Stonnington | $670,833 → $718,500 | +7% | +62% | 3.0% → 4.6% |
| North Melbourne | Melbourne | $513,667 → $552,500 | +8% | +45% | 4.6% → 6.1% |
| Canterbury | Boroondara | $1,005,333 → $1,085,000 | +8% | +44% | 2.0% → 2.7% |
| Port Melbourne | Port Phillip | $703,333 → $760,667 | +8% | +31% | 4.1% → 4.9% |
| Ascot Vale | Moonee Valley | $497,500 → $540,000 | +9% | +54% | 3.7% → 5.2% |
| Seddon | Maribyrnong | $436,167 → $474,000 | +9% | +59% | 3.8% → 5.6% |
| Hawthorn | Boroondara | $538,333 → $591,000 | +10% | +47% | 3.9% → 5.1% |
| Windsor | Stonnington | $506,833 → $558,500 | +10% | +42% | 4.5% → 5.9% |
| Bundoora | Whittlesea | $418,000 → $466,667 | +12% | +51% | 4.0% → 5.4% |
| Doncaster | Manningham | $567,000 → $638,500 | +13% | +52% | 3.5% → 4.8% |
| Elwood | Port Phillip | $587,000 → $667,667 | +14% | +47% | 3.6% → 4.7% |
| Murrumbeena | Glen Eira | $515,167 → $593,000 | +15% | +48% | 3.8% → 4.9% |
| Burwood East | Whitehorse | $566,667 → $653,167 | +15% | +63% | 3.2% → 4.5% |
| South Melbourne | Port Phillip | $555,833 → $644,000 | +16% | +34% | 4.8% → 5.5% |
| Essendon | Moonee Valley | $481,000 → $559,000 | +16% | +48% | 3.7% → 4.7% |
| Kensington | Melbourne | $448,833 → $524,833 | +17% | +42% | 4.4% → 5.4% |
| Moonee Ponds | Moonee Valley | $471,167 → $556,667 | +18% | +54% | 3.9% → 5.1% |
| Middle Park | Port Phillip | $660,000 → $783,667 | +19% | +43% | 3.5% → 4.3% |
| Brunswick | Moreland | $486,333 → $578,333 | +19% | +51% | 4.2% → 5.3% |
| Yarraville | Maribyrnong | $514,000 → $617,500 | +20% | +59% | 3.3% → 4.3% |
| Box Hill | Whitehorse | $478,833 → $576,333 | +20% | +70% | 3.8% → 5.4% |
| Carnegie | Glen Eira | $511,833 → $618,667 | +21% | +61% | 3.7% → 5.0% |
| Fitzroy North | Yarra | $576,000 → $699,000 | +21% | +50% | 4.0% → 4.9% |
| Footscray | Maribyrnong | $421,667 → $513,000 | +22% | +73% | 4.0% → 5.7% |
| West Melbourne | Melbourne | $485,167 → $591,167 | +22% | +45% | 4.8% → 5.7% |
| Northcote | Darebin | $512,833 → $630,500 | +23% | +42% | 4.3% → 4.9% |
| Elsternwick | Glen Eira | $549,667 → $678,833 | +23% | +51% | 3.8% → 4.6% |
| Carlton North | Yarra | $556,667 → $688,333 | +24% | +40% | 3.9% → 4.4% |
| East Melbourne | Melbourne | $603,333 → $751,500 | +25% | +33% | 4.3% → 4.6% |
| Alphington | Yarra | $604,833 → $763,167 | +26% | +63% | 3.0% → 3.9% |
| Ivanhoe | Banyule | $576,000 → $727,500 | +26% | +66% | 3.2% → 4.2% |
| Heidelberg | Banyule | $529,333 → $671,833 | +27% | +57% | 3.4% → 4.2% |
| Fairfield | Yarra | $462,500 → $593,333 | +28% | +63% | 3.9% → 5.0% |
| Bulleen | Manningham | $653,000 → $841,667 | +29% | +52% | 3.1% → 3.6% |
| Fitzroy | Yarra | $618,500 → $797,833 | +29% | +40% | 4.4% → 4.8% |
| Oakleigh | Monash | $456,667 → $589,167 | +29% | +63% | 4.0% → 5.0% |
| Mont Albert | Whitehorse | $615,000 → $795,833 | +29% | +44% | 3.3% → 3.6% |
| Oak Park | Moreland | $485,000 → $628,333 | +30% | +56% | 3.3% → 4.0% |
| Kew | Boroondara | $641,667 → $841,167 | +31% | +46% | 3.1% → 3.5% |
| Toorak | Stonnington | $870,833 → $1,141,667 | +31% | +43% | 2.7% → 2.9% |
| Glen Waverley | Monash | $631,667 → $830,000 | +31% | +70% | 3.1% → 4.0% |
| Thornbury | Darebin | $465,000 → $619,333 | +33% | +47% | 3.9% → 4.3% |
| West Footscray | Maribyrnong | $413,333 → $551,333 | +33% | +49% | 4.0% → 4.5% |
| Surrey Hills | Boroondara | $653,167 → $872,000 | +34% | +44% | 3.1% → 3.3% |
| Blackburn | Whitehorse | $532,833 → $715,500 | +34% | +49% | 3.6% → 4.0% |
| Glen Iris | Boroondara | $563,333 → $759,167 | +35% | +51% | 3.6% → 4.0% |
| Mentone | Kingston | $481,167 → $651,000 | +35% | +55% | 3.8% → 4.3% |
| Pascoe Vale South | Moreland | $461,667 → $628,333 | +36% | +56% | 3.9% → 4.5% |
| Pascoe Vale | Moreland | $462,667 → $630,167 | +36% | +50% | 3.7% → 4.1% |
| Bentleigh | Glen Eira | $580,000 → $791,000 | +36% | +60% | 3.2% → 3.8% |
| Preston | Darebin | $438,333 → $599,333 | +37% | +54% | 4.2% → 4.7% |
| Caulfield | Glen Eira | $600,333 → $827,000 | +38% | +57% | 3.4% → 3.9% |
| Williamstown | Hobsons Bay | $549,333 → $756,833 | +38% | +64% | 3.1% → 3.6% |
| Clayton | Monash | $514,500 → $709,333 | +38% | +64% | 3.5% → 4.2% |
| Templestowe | Manningham | $663,000 → $914,833 | +38% | +52% | 3.0% → 3.3% |
| Hughesdale | Monash | $541,000 → $747,333 | +38% | +48% | 3.6% → 3.9% |
| Newport | Hobsons Bay | $561,667 → $776,000 | +38% | +78% | 3.0% → 3.9% |
| Ringwood | Maroondah | $443,333 → $615,833 | +39% | +60% | 3.7% → 4.3% |
| Keilor East | Moonee Valley | $534,167 → $742,667 | +39% | +47% | 3.4% → 3.6% |
| Doncaster East | Manningham | $614,167 → $856,000 | +39% | +59% | 3.0% → 3.5% |
| Altona | Hobsons Bay | $500,333 → $697,667 | +39% | +58% | 3.1% → 3.5% |
| Balwyn | Boroondara | $673,333 → $942,833 | +40% | +54% | 2.9% → 3.2% |
| Cheltenham | Kingston | $483,667 → $677,667 | +40% | +56% | 3.8% → 4.2% |
| Camberwell | Boroondara | $664,500 → $934,333 | +41% | +51% | 3.0% → 3.3% |
| Mill Park | Whittlesea | $359,833 → $506,500 | +41% | +51% | 4.3% → 4.6% |
| Sunshine | Brimbank | $358,333 → $505,000 | +41% | +64% | 3.7% → 4.3% |
| Hampton | Bayside | $693,333 → $980,500 | +41% | +53% | 3.1% → 3.3% |
| Burwood | Whitehorse | $575,333 → $820,333 | +43% | +44% | 3.6% → 3.6% |
| Mordialloc | Kingston | $475,333 → $680,167 | +43% | +55% | 3.8% → 4.1% |
| Mitcham | Whitehorse | $560,667 → $806,667 | +44% | +49% | 3.1% → 3.3% |
| Mount Waverley | Monash | $725,500 → $1,059,167 | +46% | +46% | 2.6% → 2.6% |
| Glenroy | Moreland | $398,333 → $584,333 | +47% | +56% | 4.1% → 4.3% |
| Parkdale | Kingston | $504,167 → $754,667 | +50% | +55% | 3.6% → 3.7% |
| Avondale Heights | Moonee Valley | $455,167 → $681,500 | +50% | +47% | 4.0% → 3.9% |
| Wantirna | Knox | $475,833 → $715,833 | +50% | +54% | 3.7% → 3.8% |
| Roxburgh Park | Hume | $312,667 → $470,833 | +51% | +55% | 5.0% → 5.1% |
| Nunawading | Whitehorse | $505,667 → $761,667 | +51% | +49% | 3.5% → 3.4% |
| Mulgrave | Monash | $532,333 → $802,833 | +51% | +70% | 3.7% → 4.1% |
| Brighton East | Bayside | $814,000 → $1,228,333 | +51% | +51% | 2.6% → 2.6% |
| Forest Hill | Whitehorse | $537,500 → $812,167 | +51% | +63% | 3.3% → 3.6% |
| Epping | Whittlesea | $322,500 → $488,667 | +52% | +51% | 4.8% → 4.8% |
| Springvale | Greater Dandenong | $401,167 → $608,000 | +52% | +69% | 3.9% → 4.3% |
| Vermont | Whitehorse | $610,000 → $925,500 | +52% | +63% | 3.0% → 3.2% |
| Eltham | Nillumbik | $504,667 → $768,333 | +52% | +51% | 3.4% → 3.3% |
| Aspendale | Kingston | $549,667 → $838,667 | +53% | +60% | 3.1% → 3.3% |
| Broadmeadows | Hume | $293,000 → $452,500 | +54% | +55% | 5.3% → 5.4% |
| Donvale | Manningham | $585,833 → $905,833 | +55% | +59% | 3.2% → 3.3% |
| Sunbury | Hume | $314,500 → $488,500 | +55% | +50% | 4.7% → 4.5% |
| Chadstone | Monash | $526,833 → $823,667 | +56% | +63% | 3.5% → 3.6% |
| Tullamarine | Hume | $344,167 → $538,333 | +56% | +51% | 4.5% → 4.3% |
| Beaumaris | Bayside | $811,333 → $1,270,000 | +57% | +53% | 2.6% → 2.6% |
| Heidelberg West | Banyule | $407,000 → $638,000 | +57% | +57% | 4.4% → 4.4% |
| Greensborough | Banyule | $456,500 → $719,167 | +58% | +51% | 3.6% → 3.5% |
| Scoresby | Knox | $462,667 → $730,833 | +58% | +54% | 3.8% → 3.7% |
| Carrum | Kingston | $472,000 → $745,833 | +58% | +60% | 3.6% → 3.7% |
| Chelsea | Kingston | $435,500 → $691,000 | +59% | +60% | 3.9% → 4.0% |
| Hoppers Crossing | Wyndham | $278,000 → $441,667 | +59% | +59% | 4.8% → 4.8% |
| Melton | Melton | $233,000 → $373,333 | +60% | +49% | 5.3% → 4.9% |
| Werribee | Wyndham | $264,500 → $423,833 | +60% | +59% | 5.0% → 5.0% |
| Boronia | Knox | $407,500 → $655,500 | +61% | +56% | 4.1% → 3.9% |
| Thomastown | Whittlesea | $309,000 → $497,333 | +61% | +54% | 4.9% → 4.7% |
| St Albans | Brimbank | $305,000 → $491,333 | +61% | +55% | 4.5% → 4.4% |
| Fawkner | Moreland | $353,000 → $571,667 | +62% | +56% | 4.6% → 4.4% |
| Sydenham | Brimbank | $301,333 → $488,500 | +62% | +41% | 5.5% → 4.8% |
| Noble Park | Greater Dandenong | $332,167 → $543,833 | +64% | +69% | 4.5% → 4.6% |
| Bayswater | Knox | $399,667 → $655,500 | +64% | +55% | 4.0% → 3.8% |
| Albert Park | Port Phillip | $778,500 → $1,279,167 | +64% | +43% | 3.0% → 2.6% |
| Ashburton | Boroondara | $808,000 → $1,330,667 | +65% | +44% | 2.5% → 2.2% |
| Reservoir | Darebin | $380,000 → $626,500 | +65% | +58% | 4.3% → 4.1% |
| Ferntree Gully | Knox | $405,000 → $672,333 | +66% | +68% | 3.9% → 3.9% |
| Montmorency | Banyule | $504,000 → $843,000 | +67% | +51% | 3.4% → 3.0% |
| Berwick | Casey | $385,000 → $650,000 | +69% | +63% | 4.1% → 3.9% |
| Endeavour Hills | Casey | $365,667 → $619,167 | +69% | +64% | 4.0% → 3.9% |
| Pakenham | Cardinia | $280,500 → $482,833 | +72% | +70% | 4.8% → 4.8% |
| Mornington | Mornington Peninsula | $462,167 → $796,667 | +72% | +68% | 3.5% → 3.4% |
| Frankston | Frankston | $301,667 → $525,833 | +74% | +70% | 4.6% → 4.5% |
| Hampton Park | Casey | $301,833 → $541,667 | +79% | +61% | 5.0% → 4.5% |
| Narre Warren | Casey | $304,000 → $549,000 | +81% | +61% | 5.0% → 4.4% |
| Seaford | Frankston | $352,333 → $638,667 | +81% | +64% | 4.2% → 3.8% |
| Dromana | Mornington Peninsula | $439,167 → $802,500 | +83% | +80% | 3.0% → 3.0% |
| Ivanhoe East | Banyule | $595,667 → $1,091,667 | +83% | +66% | 3.1% → 2.8% |
| Brighton | Bayside | $760,833 → $1,396,833 | +84% | +30% | 3.4% → 2.4% |
| Carrum Downs | Frankston | $310,167 → $574,167 | +85% | +64% | 4.7% → 4.2% |
| Hastings | Mornington Peninsula | $285,000 → $566,167 | +99% | +71% | 4.9% → 4.2% |
Bold price-change figures mark suburbs below the ~28% CPI benchmark for the period — meaning apartment values there lost ground in real terms. Data as of 2013-15 vs 2022-24 (VGV unit medians) · Dec 2014 vs Sep 2025 quarters (DFFH 2BR-flat rents). Full ranking of all 134 established unit markets analysed, weakest price growth first.
What the data shows
The weakest performers are almost all inner-city, investor-grade apartment markets — Carlton, Docklands, Southbank, Abbotsford, South Yarra, St Kilda. These are exactly the suburbs that saw the most high-rise apartment building over the decade, and heavy new supply held prices essentially flat while houses in the very same suburbs kept climbing. Carlton's unit median actually fell 11% in nominal terms — before accounting for a decade of inflation, body corporate fees, or any other holding cost.
Rents told the opposite story almost everywhere: up 40–80% across nearly every suburb in this dataset, as vacancy tightened over the period. Because prices stalled in exactly the suburbs where rents jumped the most, gross rental yields climbed sharply in the weakest-price-growth suburbs — Carlton's roughly doubled, from 5.1% to 8.3%. The pattern repeats down the entire underperforming end of the table: Abbotsford (4.5% → 6.7%), Flemington (4.8% → 6.9%), Docklands (4.7% → 6.5%).
The suburbs at the other end of the ranking — Hastings, Carrum Downs, Brighton, Dromana, Ivanhoe East, all with price growth above 80% — are a genuinely different market: lower-density, less apartment-heavy suburbs (often outer or coastal) where "apartment" sales are a small, less generic slice of the local market, so the median moves more like the broader house market around it. That's a useful caution on comparing across very different apartment markets using one metric.
For buyers, the message is a caution about capital growth on generic, high-rise apartment stock in supply-heavy inner suburbs — the last decade's numbers, not a promise about the next one. For investors, the income case in those same suburbs has quietly improved: several inner-city yields are now above 6%, well ahead of typical Melbourne house yields of 2-3%. See each suburb's own price and rent history on its Delora profile, and where the next wave of apartment supply is actually landing in the apartment-glut ranking.
Reading gross yield correctly
Gross yield here is annual rent (2-bedroom flat) divided by the unit median price — a proxy pairing, not an exact match, because the rent series is reported at a slightly different geography ("locality") than the sale price series in some suburbs (Carlton, for instance, shares its rent series with neighbouring Parkville). It's also gross: before body corporate fees, land tax, maintenance, vacancy periods and management costs, all of which reduce the real return. Treat these yield figures as directionally useful for comparing suburbs against each other, not as your actual expected net return.
Frequently asked questions
Did Melbourne apartments go up in value over the decade?
Only weakly, on average. The median established unit market rose about 38% over the ten years to 2024/25 — barely ahead of inflation (roughly 28% over the same period). In 42 of the 134 suburbs analysed, apartment prices didn't beat inflation at all, and in three of them (Carlton, Abbotsford, Flemington) prices actually fell in nominal terms.
Why did apartment prices lag houses in the same suburbs?
The suburbs with the weakest apartment price growth are mostly inner-city areas that saw a lot of new high-rise apartment supply over the decade. Abundant new stock competes directly with existing apartments and holds prices down, while the scarcer commodity in the same suburbs — land under a house — kept appreciating largely unconstrained by new supply.
What is a good gross rental yield for a Melbourne apartment?
Gross yield is annual rent divided by price. Melbourne houses typically sit around 2-3%; apartments run higher. Because apartment prices stalled in several inner-city suburbs while rents kept rising, a number of unit yields have climbed past 6% — Carlton's to around 8.3% — though yield alone is only part of the return, before costs, and doesn't capture capital growth (or its absence).
Which suburbs had the strongest apartment price growth?
Hastings (+99%), Carrum Downs (+85%), Brighton (+84%), Dromana (+83%) and Ivanhoe East (+83%) — mostly outer, coastal or lower-density suburbs where "apartment" sales are a smaller, less generic share of the local market than in the high-rise inner suburbs.
Should I avoid buying an apartment in a weak-price-growth suburb?
Not necessarily — it depends on your goal. These suburbs have shown weak capital growth for generic apartment stock over the past decade specifically, largely due to heavy new supply, but several now carry meaningfully higher rental yields as a result. If you're buying for income rather than growth, that trade-off may suit you; if you're buying for growth, the last decade's pattern here is a real caution, not a guarantee it continues.
See also: where Melbourne's apartment glut is building · what actually drives Melbourne house prices · browse all Melbourne suburbs
Delora provides general information, not legal or financial advice, and is not a substitute for a licensed conveyancer, solicitor or financial adviser. Public-record figures are suburb-level indicators — always confirm the specific property. Always obtain professional advice before signing a contract of sale.