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If you’ve spent the past few years weeping into your avocado toast as Melbourne’s property market continues to soar, we’ve got good news. Melbourne’s (generally pretty eye-watering) property market has had a bit of a reality check, with several formerly million-dollar suburbs slipping below major price benchmarks in the latest Domain House Price Report.
The June 2026 report found that 15 suburbs across Australia had fallen out of the $1 million, $2 million or $3 million median-price clubs during the June quarter – and Melbourne accounted for six of them.
According to the property experts at Domain, the changes come amid higher living costs, reduced borrowing power and three recent interest rate rises, with buyers reportedly becoming less willing to throw caution to the wind. In other words, the days of frantic FOMO buying may be giving way to something a little more sensible: fear of overpaying.
Here are the local suburbs where median prices took a tumble.
Melbourne suburbs that lost their $1 million median status:
Hampton: Units down 11.7 per cent, from $1.121 million to $990,000
Chelsea Heights: Houses down 2.3 per cent, from $1.0085 million to $985,000
Scoresby: Houses down 0.3 per cent, from $1.001 million to $997,500
The biggest fall here was in Hampton, where the median unit price dropped by a hefty $131,000 in just three months. But before you start scrolling Domain listings, it’s worth remembering that medians don’t tell the whole story. As Buxton Brighton director Owen Bowditch pointed out to the team at Domain, there are “markets within markets” in suburbs like Brighton and Hampton, where a $950,000 property and a $10 million home can exist on the same street.
Melbourne suburbs that lost their $2 million median status:
South Yarra: Houses down 8.2 per cent, from $2.02 million to $1.855 million
Malvern East: Houses down 3 per cent, from $2 million to $1.94 million
According to stats from Domain, South Yarra recorded the sharpest quarterly fall among Victoria’s million-dollar suburbs, with its median house price dropping $165,000. According to the report, buyers here are becoming increasingly measured, and sellers are holding back unless they have a particularly desirable property to offer.
Melbourne suburbs that lost their $3 million median status:
Brighton: Houses down 6.6 per cent, from $3.12 million to $2.915 million
Based on Domain’s report, Brighton was the only local suburb to tumble out of the $3 million club, with its median house price falling by $205,000 over the quarter. That doesn’t mean Brighton has suddenly become affordable, of course. As Bowditch explains, renovated, family-sized homes in prime positions are still attracting plenty of competition, but there may be some glimmers of hope for buyers. FoundIt buyer’s agency director Andrew Macmillan said falling values are bringing some buyers back into the market, with prices in many cases returning to levels last seen around 2016 or 2017.
You can check the full report over here.
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