Buying your First Home in Melbourne

Planning to buy your first home? Find out all you need to know about the Melbourne market in 2021

Article published 16 August 2021

Buying your first home can be one of the biggest decisions you will ever make, so it’s important to make sure you have all the information to get the right deal for you. If you’re looking for your first home in Melbourne, knowing the housing market is always helpful in making the right decision. 

The Melbourne market has performed incredibly well over the past year, recording gains of 7.7%, taking the median house price to $929,769 in July 2021.1 A more affordable option is apartments, with a median value of $610,043. Despite these increases, the multiple lockdowns have taken their toll, as Melbourne is the only state capital that didn’t achieve double digit increases in value over the past 12 months, but the silver lining is better affordability for first home buyers!

In fact, there could be a golden opportunity for first home buyers wanting to buy an apartment in Melbourne’s CBD.  A great opportunity for first home buyers wanting to buy an apartment in Melbourne’s CBD was announced in the latest State Government Budget. The Government has introduced a 50% reduction in stamp duty for new homes within Melbourne city, rising to a 100% waiver of duty for homes that have spent a year or more on the market.2 This new offer is a temporary incentive for properties up to a value of $1 million, and the concessions only apply to contracts entered from 1 July 2021 to 30 June 2022 for the 50% concession, and 21 May 2021 to 30 June 2022 for the 100% concession. These are fantastic savings for first home buyers looking to get into the CBD market.

Using the First Home Buyers Grant in Melbourne

In more good news for first home buyers, when buying your first home in Melbourne, you may be eligible for the First Home Owners Grant (FHOG). The FHOG in Melbourne is a lump sum of $10,000 to help with the costs of buying your first home or vacant land to build on. In Melbourne, the FHOG is available to you if you buy a newly built home or if you choose to build a home from scratch and must be valued at $750,000 or less. For a home to be considered a new home it must not have been previously occupied or sold as a place of residence or for the provision of short term accommodation, and includes a substantially renovated home and a home built to replace demolished premises.

Read more about the FHOG VIC here to see if you’re eligible or speak to your local Mortgage Choice broker for more. 

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First home buyer 2021 grants guide

If you're looking at buying your first home it's worth knowing what Government help is available. This guide will walk you through all the grants and schemes to help you save.


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Top 5 Suburbs in Melbourne to Buy your First Home

If you’re unsure of where you should start looking in Melbourne for your first home, it’s worth considering different suburbs and areas. To get your started we have selected 5 of the top suburbs in Melbourne to buy your first home and included some key information to consider when deciding where you want to live. Please note these suburbs are a guide and you should undertake your own research to find the right property for you. 

Median house price: $520,000

Nearby amenities: Beachside suburb, Frankston Arts Centre, McClelland Sculpture Park &  Over 100 green public spaces, 

Planned future development: 2020-2030 Long Term Infrastructure Plan3 with goals to turn Frankston City into the “Lifestyle Capital of Victoria” through investments in infrastructure to grow the community, build communities, enhance the environment and create a digital future for the city. 

Property market trend: Average annual growth rate of 7.73%4

Distance from CBD: 41km 

Median house price: $587,909

Median unit price: $403,000

Nearby amenities: Grasslands, golf course, shopping centres, skate parks, within close proximity to Brunswick. 

Planned future development: Craigieburn Road upgrade to improve traffic flow and traffic times, and build better walking, cycling and public transport connections.5 

Property market trend: Average annual growth rate of 5.56% for houses and 1.46% for units6

Distance from CBD: 43.7km

Median house price: $785,000

Median unit price: $615,888

Nearby amenities: Quick access to Dandenong Ranges, Shopping centre, cinemas and public transport options with buses and train station. 

Planned future development: Boronia Renewal Strategy 2019-20407: 20 year plan to ensure Boronia is a major activity centre for Victoria. Meaning this suburb will provide a focal point for services, employment, housing, public transport and social interaction. 

Property market trend: Average annual growth rate of 6.43% for houses and 5.48% for units8

Distance from CBD: 36.5km

Median house price: $425,000

Median unit price: $337,250

Nearby amenities: Part of the Sunbury Wine Region, local shopping centres, cinemas and Victoria University Campus. 

Planned future development: City of Melton Advocacy Priorities:9 Outlining key priorities for Melton to enhance the city for a stronger future. Investments include, upgrade to the Western Highway, improvements to bus and rail systems, 24-hour public hospital and a local tertiary and TAFE learning environment. 

Property market trend: Average annual growth rate of 5.55% for houses and 4.13% for units10

Distance from CBD: 45km

Median house price: $700,000

Nearby amenities: Close distance to Melbourne airport through the Tullamarine Freeway, local shopping centre, multiple parks and reputable schools.    

Planned future development: Gladstone Park Pavilion Redevelopment to support the growth in female participation at Gladstone Park reserve.

Property market trend: Average annual growth rate of 6.27%11

Distance from CBD: 21km

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Ready to buy your first home? Get your free home loan quote today.



Posted in: First home buyers


1 CoreLogic Hedonic Index July 2021
2 https://www.sro.vic.gov.au/state-budget-2021-22-announcements
3 https://www.frankston.vic.gov.au/files/assets/public/planning-and-building/major-projects/pdfs/long_term_infrastructure_plan_2020_-_2030.pdf
4 Calculated from 2012-2020 values - https://www.realestate.com.au/neighbourhoods/frankston-north-3200-vic as at 02 August 2021
5 https://roadprojects.vic.gov.au/projects/craigieburn-road-upgrade
6 Calculated from 2012-2020 values - https://www.realestate.com.au/neighbourhoods/boronia-3155-vic as at 03 August 2021
7 https://www.knox.vic.gov.au/our-services/building-and-planning/land-use-planning/policies-strategies-in-progress/boronia-renewal-project
8 Calculated from 2012-2020 values - https://www.realestate.com.au/neighbourhoods/boronia-3155-vic as at 03 August 2021
9 https://www.miragenews.com/our-future-city-of-melton/
10 Calculated from 2012-2020 values - https://www.realestate.com.au/neighbourhoods/melton-3337-vic as at 03 August 2021
11 Calculated from 2012-2020 values - https://www.realestate.com.au/neighbourhoods/gladstone-park-3043-vic as at 03 August 2021