Melbourne buyers often start with a suburb’s median price. But the price per square metre can reveal something the median cannot: how much buyers are being asked to pay for the space they actually receive.
New PropTrack data shows a sharp divide across Melbourne’s premium suburbs. It also shows that the most expensive suburb overall is not always the most expensive per square metre.
Albert Park leads Melbourne’s house market at an average asking price of $15,093 per square metre. For units, Toorak leads with $13,457 per square metre.
Albert Park’s result makes sense. Buyers pay a premium for limited land near the city, the beach, Albert Park Lake, and established village precincts. Many homes sit on compact blocks, which pushes the land-based square metre rate higher.
Middle Park follows at $13,181 per square metre. East Melbourne sits only $14 behind at $13,167. Both markets combine scarce land with tightly held period homes and excellent access to Melbourne’s CBD.
Toorak ranks fourth for houses, despite recording some of Melbourne’s highest individual sale prices. Its average of $11,742 per square metre reflects the suburb’s larger blocks. A $10 million property on substantial land can carry a lower land rate than a smaller terrace closer to the city.
That is why you must read the headline price and square metre rate together.
Mount Buller ranked second across Victoria at $12,948 per square metre. It has been excluded here because this article focuses on metropolitan Melbourne.
Toorak leads Melbourne’s unit market at $13,457 per square metre. That figure sits about 15 per cent above its house rate. Buyers pay for premium locations, high-end finishes, security, and low-maintenance living, often without getting a large floor plan.
Brighton follows at $11,724 per square metre. Fitzroy ranks third at $11,191. These results come from very different markets, yet both show how much buyers value location. Brighton offers bayside living and prestige stock. Fitzroy offers walkability, culture and proximity to the CBD.
Port Melbourne also provides an interesting comparison. Its unit rate of $9,436 per square metre exceeds its house rate of $8,696. Apartments can command a premium when buyers pay for views, newer construction and immediate access to the waterfront.
What this data tells Melbourne buyers
Price per square metre gives buyers another way to compare value. It can expose a high asking price, identify a better-sized apartment or show how much of the purchase price relates to location.
But it should never decide a purchase on its own.
For houses, the calculation uses land size. It does not properly account for the home’s condition, architectural quality, orientation, heritage controls or redevelopment potential.
For units, the calculation uses floor area. It does not fully capture natural light, views, outdoor space, floor level, car parking, storage or owners corporation costs.
The data is also based on asking prices for properties listed for sale, rather than settled sale prices. A suburb’s result can shift when the type and size of advertised properties change.
That matters in tightly held prestige suburbs. A handful of large homes, compact terraces or luxury apartments can materially alter the suburb average.
The bottom line
Melbourne’s highest square metre rates cluster around scarce, established inner-city and bayside locations.
Albert Park commands the highest rate for houses. Toorak leads for units. Middle Park, East Melbourne, Brighton and Fitzroy also show how strongly buyers value location when land or internal space is limited.
The figure is useful, but context remains critical. A buyer should compare similar properties, inspect the quality of the space and understand what sits behind the number before deciding whether the asking price represents fair value.
Source: PropTrack data reported by realestate.com.au. The price per square metre was calculated by dividing the listing asking price by property size. Houses use land size, and units use floor area. Figures are suburb averages for areas with at least 30 eligible listings during the 12 months ending August 2026.
I’m Andrew Date, the founder and Senior Advisor at Industry Insider Property, Toorak. Industry Insider Property acts exclusively for buyers, advisors and sellers in Melbourne’s prestige and luxury residential market.
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