Demand
Soft▼ falling
Confidence: Moderate
Selling times are 4.8% above the five-year norm. Latest reading 38.0 against a five-year average of 36.3.
- Latest
- 38
- 12 months ago
- 39.33
- 5-year average
- 36.26
- 5-year range
- 26.3 – 43.0
Preston
A standing intelligence briefing: what the market is doing now, how that compares with its own five-year history, and the pipeline items that could change it.
- Median house
- $1,048,000
- Median unit
- $512,000
- Annual growth
- +2.8%
- Median rent
- $724
- Gross yield
- 3.6%
- Vacancy
- 1.9%
Follow Preston in My APD
We'll keep track of what changes here — prices, rents, vacancy, supply and new APD research — and show it the next time you look.
Free account. Private to you. No newsletter unless you ask for one.
APD View — Preston
Preston: conditions stable
Current data indicates conditions in Preston are stable. 14 indicators across 5 analytical dimensions inform this reading, with 36% pointing the same way.
Direction
Stable
Confidence
Moderate
Evidence strength
Strong
Direction describes where underlying conditions are moving. It is not a rating, a recommendation or a signal to transact — a market can be improving while remaining expensive, low-yielding or supply-exposed.
Why this confidence — Based on 14 indicators, 60 months of history, 36% of indicators pointing the same way, latest data 29 days old.
Evidence basis — Based on 14 indicators, 1 independent source, 60 months of history. Latest data 29 days old.
What changed
| Indicator | Now | 1 month | 1 quarter |
|---|---|---|---|
| Days on market | 38 days | 40 days | 40 days |
| Rental growth | 5.3% | 5.6% | 5.6% |
| Population growth | 1.7% | 1.7% | 1.8% |
| Sales volume | 106.8 | 105.99 | 104.71 |
| Vendor discounting | -4.0% | -4.1% | -4.0% |
| 12-month price growth | 2.8% | 2.9% | 2.7% |
What supports this view
- Median rent — $724 against a historical average of $631. Advertised rents sit above the historical average for this market. Historical percentile: 98.
- Median house value — $1,044,982 against a historical average of $980,281. House values sit above the historical average for this market. Historical percentile: 97.
- Price-to-rent multiple — 27.76 against a historical average of 29.97. Prices are low relative to rents compared with the historical average. Historical percentile: 0.
- Sales volume — 106.8 against a historical average of 87.5. Transaction volumes are running above the historical average. Historical percentile: 92.
- Vendor discounting — -4.0% against a historical average of -3.6%. Sellers are accepting smaller reductions than normal. Historical percentile: 10.
What works against it
- Rental growth argues the other way — Rental growth reads 5.3% against a 6.0% historical average (0th percentile), which works against the current reading.
- Building approvals argues the other way — Building approvals reads 59 against a 45 historical average (95th percentile), which works against the current reading.
- Vacancy rate argues the other way — Vacancy rate reads 1.9% against a 1.5% historical average (92th percentile), which works against the current reading.
- Advertised listings argues the other way — Advertised listings reads 235 against a 193 historical average (92th percentile), which works against the current reading.
- Rental growth — 5.3%. Rental growth is running below its historical average. Historical percentile: 0.
- Building approvals — 58.74. Dwelling approvals are running above the historical average, pointing to more future supply. Historical percentile: 95.
- Vacancy rate — 1.9%. Rental availability is looser than the historical norm. Historical percentile: 92.
- Advertised listings — 234.96. Advertised stock is above the historical average. Historical percentile: 92.
Market signals
Each signal compares the latest reading with the suburb's own five-year record
Price Momentum
Neutral▼ falling
Confidence: Low
Annual price growth is in line with the five-year average. Latest reading 2.8 against a five-year average of 2.8.
- Latest
- 2.78
- 12 months ago
- 2.82
- 5-year average
- 2.82
- 5-year range
- 2.1 – 3.6
Rental Conditions
Weak▲ rising
Confidence: High
Vacancy is running 25.8% above the historical average. Latest reading 1.9 against a five-year average of 1.5.
- Latest
- 1.9
- 12 months ago
- 1.41
- 5-year average
- 1.51
- 5-year range
- 1.0 – 1.9
Rental Pressure
Soft▼ falling
Confidence: High
Rental growth is 11.4% below the five-year average. Latest reading 5.3 against a five-year average of 6.0.
- Latest
- 5.31
- 12 months ago
- 6.28
- 5-year average
- 5.99
- 5-year range
- 5.3 – 6.7
Affordability
Firm▼ falling
Confidence: Moderate
The price-to-rent multiple sits 7.4% below its five-year average. Latest reading 27.8 against a five-year average of 30.0.
- Latest
- 27.76
- 12 months ago
- 28.44
- 5-year average
- 29.97
- 5-year range
- 27.8 – 32.5
Supply
Weak▲ rising
Confidence: High
Advertised stock is 21.9% above the five-year average. Latest reading 235.0 against a five-year average of 192.8.
- Latest
- 234.96
- 12 months ago
- 190.38
- 5-year average
- 192.82
- 5-year range
- 136.5 – 239.2
Liquidity
Strong▲ rising
Confidence: High
Transaction volumes are 22.1% above the five-year average. Latest reading 106.8 against a five-year average of 87.5.
- Latest
- 106.8
- 12 months ago
- 83.48
- 5-year average
- 87.5
- 5-year range
- 63.5 – 109.5
Population Growth
Neutral▼ falling
Confidence: Low
Population growth is in line with the longer-run average. Latest reading 1.7 against a five-year average of 1.7.
- Latest
- 1.73
- 12 months ago
- 1.83
- 5-year average
- 1.74
- 5-year range
- 1.6 – 1.9
Development Risk
Weak▲ rising
Confidence: High
Dwelling approvals are 30.1% above the five-year average. Latest reading 58.7 against a five-year average of 45.2.
- Latest
- 58.74
- 12 months ago
- 39.97
- 5-year average
- 45.16
- 5-year range
- 29.8 – 59.1
Investor Activity
Neutral▼ falling
Confidence: Low
Gross yields are in line with the five-year average. Latest reading 3.6 against a five-year average of 3.6.
- Latest
- 3.6
- 12 months ago
- 3.83
- 5-year average
- 3.62
- 5-year range
- 3.2 – 3.9
Indicators
Latest reading against one, three and five years ago
| Indicator | Latest | 1yr | 3yr | 5yr | 5yr avg | 5yr range |
|---|---|---|---|---|---|---|
| Median house priceMiddle sale price for houses over the trailing twelve months. | $1,044,982 | +2.8% | +8.1% | +14.0% | $980,281 | $916,570 – $1,048,987 |
| 12-month price growthTwelve-month change in median house price. | 2.8% | -1.4% | -5.1% | — | 2.8% | 2.1% – 3.6% |
| Median unit priceMiddle sale price for units and apartments over the trailing twelve months. | $512,811 | +2.3% | +5.8% | +9.9% | $488,527 | $466,591 – $512,811 |
| Median weekly rentMiddle advertised weekly rent across all dwelling types. | 724 | +5.3% | +18.8% | +33.3% | 631 | 543 – 724 |
| Rental growthTwelve-month change in median advertised weekly rent. | 5.3% | -15.4% | -15.7% | — | 6.0% | 5.3% – 6.7% |
| Gross rental yieldAnnual gross rent as a share of median dwelling value. | 3.6% | -6.0% | +6.2% | -2.2% | 3.6% | 3.2% – 3.9% |
| Price-to-rent multipleMedian house price divided by annual median rent. | 28 | -2.4% | -9.0% | -14.5% | 30 | 28 – 32 |
| Vacancy rateShare of rental stock advertised and unlet. | 1.9% | +34.8% | +4.4% | +77.6% | 1.5% | 1.0% – 1.9% |
| Sales volumeNumber of dwelling transactions settled in the month. | 107 | +27.9% | +8.6% | +58.7% | 88 | 63 – 110 |
| Total listingsDwellings advertised for sale at month end. | 235 | +23.4% | +7.4% | +53.2% | 193 | 136 – 239 |
| Days on marketMedian time from listing to sale. | 38 days | -3.4% | +18.3% | +11.1% | 36 days | 26 days – 43 days |
| Vendor discountMedian gap between first asking price and sale price. | -4.0% | -12.6% | -4.7% | -22.9% | -3.6% | -4.1% – -3.2% |
| Auction clearanceShare of scheduled auctions reported sold. | 64.1% | -6.2% | +7.0% | -3.0% | 65.0% | 58.5% – 69.2% |
| Population growthAnnual resident population change. | 1.7% | -5.5% | +4.8% | -1.7% | 1.7% | 1.6% – 1.9% |
| Building approvalsDwellings approved for construction in the month. | 59 | +47.0% | +9.7% | +94.3% | 45 | 30 – 59 |
Source: Australia Property Data derived series (anchored to current market metrics). Percentage columns show the change from that point to the latest observation.
History
Monthly observations, last five years
Source: Australia Property Data derived series (anchored to current market metrics)
Source: Australia Property Data derived series (anchored to current market metrics)
Source: Australia Property Data derived series (anchored to current market metrics)
Source: Australia Property Data derived series (anchored to current market metrics)
What could change this market?
- Transport
Suburban Rail Loop East
Under construction · 2035
Reshapes access between middle-ring employment centres and lifts development capacity around six new stations.
Tunnelling underway between Cheltenham and Box Hill; precinct structure planning continues alongside.
- Transport
Metro Tunnel precinct uplift
Operating · Now
New CBD-fringe stations are already redirecting rental demand and apartment supply.
Station catchments at Parkville, Anzac and Arden are the focus of rezoning activity.
- Planning reform
Activity centre rezoning program
Announced · 2026-2028
Higher permitted densities across dozens of centres change the medium-term apartment pipeline.
Watch approval volumes in nominated centres for early supply signals.
Related coverage
Markets
Melbourne listings rise as spring selling season begins
Melbourne enters spring with the deepest pool of stock of any capital city. Agents report vendors are pricing to meet the market rather than testing it, keeping clearance rates stable even as choice widens.
Eleanor Hale/
DevelopmentAnalysis
Australia's apartment shortage is becoming a construction problem
Builders are declining work that would have been taken without hesitation five years ago. Fixed-price contracts, insolvency risk and a thin subcontractor market are converting a planning problem into a delivery problem.
Tom Brennan/
ResidentialBrief
Regional Victoria values turn positive for the first time since 2023
Regional Victoria's two-year decline has ended, led by markets within commuting distance of Melbourne.
Eleanor Hale/
Policy
Developers warn planning delays are restricting new housing supply
Submissions published this week describe assessment timeframes that have doubled since 2018, with referral authorities identified as the largest single source of delay.
Tom Brennan/
Commercial
Office vacancy splits between premium and secondary stock
The two-speed office market has widened again, with owners of secondary stock facing repositioning costs that increasingly exceed residual value.
Tom Brennan/
MarketsAnalysis
Why Melbourne's property market is behaving differently to every other capital city
Melbourne has spent four years underperforming the national index. The reasons are structural rather than cyclical, and they explain why rate cuts have had less effect here than anywhere else.
Eleanor Hale/