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Victoria's Unit Market Set to Outperform Houses in 2026

A Closer Look at Opportunities for First-Home Buyers

Victoria's Unit Market Set to Outperform Houses in 2026?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Victoria's unit market is projected to experience substantial growth in 2026, potentially outpacing the price increases observed in the housing sector.
Data from the Real Estate Institute of Victoria indicates that from October to December 2025, the median price of Melbourne units rose by 2% to $656,500, surpassing the 1.8% growth seen in house prices during the same period.

This trend suggests a growing demand for units, driven by factors such as affordability, lifestyle preferences, and the desire for proximity to urban amenities. For first-home buyers, this shift presents an opportunity to enter the property market at a more accessible price point compared to traditional houses.

Units often offer lower maintenance costs and are typically situated in locations with better access to public transport, employment hubs, and recreational facilities. Additionally, the potential for capital growth in the unit market can provide a solid foundation for future property investments.

Prospective buyers should conduct thorough research on specific areas within Victoria where unit growth is most pronounced. Engaging with real estate professionals and attending property inspections can provide valuable insights into the market dynamics and help identify properties that align with individual needs and financial capabilities.

By considering units as a viable option, first-home buyers can navigate the challenges of the current property market and take a significant step toward achieving homeownership.

Published:Thursday, 26th Feb 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

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Knowledgebase
Equity Release:
A way for homeowners to release cash from the value of their home, either as a lump sum or in installments, while still living in the property.