We sat down with our Stonnington directors to explore how the past year has unfolded and what lies ahead for the local property market.
How has the Stonnington property market performed in the last 12 months?
The first half of 2026 has seen the Stonnington property market continue to demonstrate the resilience and strength underpinning Melbourne’s premium property sector. Pricing has remained broadly stable, with modest variation across segments. Premium stock has largely held value, although conditions have normalised from the COVID-era peak. The strongest homes at the top end of the market have retained value, while overcapitalised or marginal stock has seen a degree of price equalisation.
The first half of 2026 has seen the Stonnington property market continue to demonstrate the resilience and strength underpinning Melbourne’s premium property sector.
Which Stonnington suburbs look best placed for stability over the next 12 months?
Armadale, Malvern and Toorak are best placed, supported by the depth of demand and long-standing market stability. South Yarra remains stable overall, though pricing is more segmented depending on street, product type and presentation.
How do you expect the Stonnington market will respond to potential further cash rate adjustments?
Further rate movements are more likely to influence sentiment and negotiation depth, rather than materially shift premium pricing. High-end stock remains largely insulated due to lower debt reliance. Mid-tier segments may experience price sensitivity and longer days on market.
Median property prices
Source: Cotality, 01/04/2025 - 31/03/2026 Where a suburb is split across a LGA, the whole suburb has been used to determine a median. Where there are insufficient sales within a suburb over a 12-month period, a median price has not been calculated.Stonnington
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Armadale
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Glen Iris
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Malvern
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Malvern East
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Prahran
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South Yarra
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Toorak
-
Windsor
Median days on market
Cotality, 01/04/2025 - 31/03/2026Stonnington
Rental yield
Cotality, 01/04/2025 - 31/03/2026Stonnington
Current population
ABS Census 2021 DataStonnington
- Houses
- Units
Metropolitan Melbourne’s vacancy rate is sitting at 1.6%¹. Armadale is tighter at 1.2%¹. What does this high rental demand mean for investors?
The supply imbalance continues to deliver strong income performance. Investor conditions have become more challenging, with rental reforms, increased land tax and holding costs softening sentiment, particularly for discretionary acquisitions. Despite this, scarcity and demand continue to support pricing for well-located, low-maintenance stock.
Stonnington continues to be a highly desirable region for buyers to move into. What drivers are fuelling this high demand?
Recent price growth is being driven by sustained demand due to limited stock. A younger, professionally mobile demographic is increasingly active in these suburbs, contributing to stronger entry point competition. This demand imbalance is translating into upward price pressure in the most sought-after pockets. For investors and sellers in the market, this presents an exciting opportunity.
Ownership
ABS Census 2021 DataStonnington
- Own
- 28%
- Purchasing
- 25%
- Rent
- 45%
- Other
- 2%
- Own
- Purchasing
- Rent
- Other
Dwelling type
ABS Census 2021 DataStonnington
- House
- 27%
- Semi detached
- 20%
- Unit / apartment
- 53%
- House
- Semi detached
- Unit / apartment
What does FY27 and beyond look like for the Stonnington property market?
We expect steady, measured growth rather than cyclical volatility. Structural undersupply and enduring demand for established inner-eastern locations will support pricing. Buyers are more informed and self-directed, with access to data and digital valuation tools contributing to longer consideration periods and more price scrutiny in the mid-market. Well located, highly sought-after properties will continue to command a premium, with consistent, incremental capital appreciation – particularly in tightly held blue-chip pockets.
Fast Five with Nathan Waterson
Favourite street
Albany Road, Toorak for its canopy of trees.
Local secret
Bruno’s coffee.
Memorable sale
47 Nicholson Street, South Yarra – a former boarding house where the owners first met, on the market for the first time in 47 years.
Design focus
Wellness features such as saunas, gyms and cold plunge.
One to watch
The Jam Factory development and major reinvigoration of Chapel Street
