We sat down with our Port Phillip directors to explore how the past year has unfolded and what lies ahead for the local property market.
How has the Port Phillip property market performed in the last 12 months?
Port Phillip remains a premium, tightly held market with enduring demand and strong fundamentals. House values are broadly stable to rising, with Albert Park, Middle Park and Port Melbourne showing limited volatility. Elwood has been particularly robust, while St Kilda has been mixed. Character homes are highly sought-after whilst apartments have stabilised. The rental market in Port Phillip is one of Melbourne’s most tightly held, with strong growth and improving yields driven by sustained demand and low vacancy.
Port Phillip will remain one of Melbourne’s most structurally resilient and tightly held inner-urban markets, with performance driven by fundamentals rather than short-term cycles.
Which Port Phillip suburbs look best placed for stability over the next 12 months?
Elwood and Albert Park are among Melbourne’s most tightly held markets. Middle Park values are underpinned by supply constraints rather than market cycles. Port Melbourne and South Melbourne benefit from strong owner-occupier demand, while St Kilda’s lifestyle credentials and improving sentiment support its long-term appeal.
How do you expect the Port Phillip market will respond to further potential cash rate adjustments?
We would expect short-term caution and selective slowdown, but not structural weakness. Limited stock, lifestyle appeal, and strong owner-occupier demand will continue to act as a stabilising force even in a higher interest-rate environment.
Median property prices
Cotality, 01/04/2025 - 31/03/2026Port Phillip
-
Albert Park
-
Balaclava
-
Elwood
-
Middle Park
-
Port Melbourne
-
Ripponlea
-
St Kilda
-
St Kilda East
-
St Kilda West
-
Windsor
Median days on market
Cotality, 01/04/2025 - 31/03/2026Port Phillip
Rental yield
Cotality, 01/04/2025 - 31/03/2026Port Phillip
Current population
ABS Census 2021 DataPort Phillip
- Houses
- Units
At Jellis Craig, Albert Park records 58 average inspection groups per listing¹. Why is this neighbourhood so coveted?
Extreme scarcity of stock, heritage and architectural prestige, excellent access to the beach, CBD and parklands, and an unbeatable blue-chip reputation keep Albert Park in high demand.
Metropolitan Melbourne’s vacancy rate is sitting at 1.6%². Middle Park is even tighter at 1.3%². What does this high rental demand mean for investors?
Tight rental conditions, strong demand, and a unit pricing correction have improved income returns. Apartments are transitioning into a higher-yield investment profile, underpinned by enduring rental demand and locational strength.
Ownership
ABS Census 2021 DataPort Phillip
- Own
- 21%
- Purchasing
- 25%
- Rent
- 51%
- Other
- 3%
- Own
- Purchasing
- Rent
- Other
Dwelling type
ABS Census 2021 DataPort Phillip
- House
- 27%
- Semi detached
- 20%
- Unit / apartment
- 53%
- House
- Semi detached
- Unit / apartment
What does FY27 and beyond look like for the Port Phillip property market?
Port Phillip will remain one of Melbourne’s most structurally resilient and tightly held inner-urban markets, with performance driven by fundamentals rather than short-term cycles. Growth is likely to be modest, underpinned by long-term demand, constrained supply, and enduring lifestyle appeal.
Fast Five with Simon Gowling
Favourite street
Wright Street, Middle Park, where my wife and I are renovating. It is the most convenient place I have ever lived in my life.
Local secret
The European in Middle Park and Fed Café in Albert Park.
Memorable sale
270 Beaconsfield Parade, which broke the suburb record for the highest price at $17 million.
Design focus
Wellness-focused spaces with infrared saunas, ice baths and steam rooms.
One to watch
Renovated properties are in strong demand.
