Why The Next Property Boom In Australia Will Be In Melbourne!

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Dec 16, 2025

Melbourne may be the ultimate property investment as experts analyze its potential against Perth. Rising rental yields and a significant drop in property listings highlight Melbourne’s tightening market. They explore the migration shift post-COVID, boosting demand, and compare affordability with Sydney, showing Melbourne as an appealing destination. With solid long-term fundamentals and a unique price gap, the discussion reveals why Melbourne could be the best bet for investors looking ahead.

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ANECDOTE

Seminar Challenge Sparked The Debate

Lachlan recounts being challenged at a Perth seminar where locals defended their market passionately.
That confrontation prompted the data-driven claim that Melbourne is the better long-term investment into 2026.

INSIGHT

Melbourne's Unusually Long Stagnation

Melbourne has had the longest stagnation in 30 years yet its long-term growth historically averages ~7% per year.
That consistency suggests Melbourne may offer a rare buying opportunity after a prolonged underperformance.

INSIGHT

Rents Have Rebalanced Yields

Median rents in Melbourne rose ~60% over five years while median house prices fell, improving yields substantially.
Investors can now achieve ~4% gross yields in Melbourne for certain land-value assets for the first time in years.

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Is Melbourne really a better property investment opportunity than Perth heading into 2026?

In this episode of the Folio Property Podcast, Lachlan Delahunty and Reece Beddall break down six critical data points to explain exactly where the Australian property market is heading, and why Melbourne may now offer a once-in-a-generation buying opportunity, despite Perth’s recent boom.

We compare Perth vs Melbourne property markets, analysing price growth, rental yields, affordability, population growth, stock on market, and land tax. And more importantly, cutting through headlines, fear, and misinformation dominating social media.

You’ll hear why Perth may still deliver short-term double-digit growth, but why Melbourne’s long-term fundamentals, affordability, and supply squeeze could make it the best medium-to-long-term investment play in Australia right now.

If you’re wondering whether investors are buying Perth, or whether Melbourne is quietly bottoming and recovering, this episode breaks it all down with real data, not opinions.

Timestamps: 00:00 Introduction 02:33 Perth vs Melbourne - Where should you invest?04:24 Is Melbourne The Most Affordable City In Australia?09:11 Why Rental Yields In Melbourne Are Increasing 13:07 The Largest Drop In Property Listings in 25 Years14:58 The Migration Shift Impacting The Property Market In 202618:56 Why Perth & Melbourne Are Still The Most Affordable Cities 20:20 The Melbourne Land Tax Dilemma 23:38 Where Is The Best Property Investment In Australia for 2026?

Key Themes:

Melbourne vs Perth: Which market actually offers better value in 2026
Is Perth nearing the top of the property cycle?
Why Melbourne has had its longest stagnation period in 30 years
Historical growth rates: Melbourne’s consistency vs Perth’s volatility
Why Adelaide is now one of the most unaffordable markets in Australia
The Sydney vs Melbourne pricing gap, and why it matters
Short-term vs long-term investing strategies

About the Folio Property Podcast

Each week, Reece Beddall & Lachlan Delahunty break down the biggest conversations shaping Australian property. From market cycles to debt, strategy, data, and real-world insights, we make property simple, honest, and practical.

📍Visit Our Website: https://follio.com.au/📩 Contact Us: info@follio.com.au

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