The Murrumbeena property forecast for 2026 and 2027 points to continued, measured price growth driven by tight supply, improving borrowing conditions, and the suburb’s enduring liveability credentials. Murrumbeena sits roughly 14 kilometres south-east of Melbourne’s CBD in the City of Glen Eira, and its combination of quality schools, reliable train access, and leafy streetscapes keeps buyer demand well ahead of available stock. Read on for a data-grounded look at where prices, rents, and market conditions are headed.

What Are Murrumbeena’s Current Median Property Prices?

Understanding the baseline is essential before projecting forward. According to CoreLogic data as at mid-2025, Murrumbeena’s median house price sat at approximately $1.44 million, while the median unit price was around $665,000. These figures reflect a suburb that has recovered firmly from the rate-driven correction of 2022–2023 and has since posted positive annual growth.

Over the ten years to 2025, CoreLogic records show Murrumbeena houses delivered compound annual growth of roughly 5.5–6%, outperforming the broader Melbourne median across most of that cycle. Units grew more modestly at around 3–4% per annum over the same window, reflecting higher supply in the apartment segment relative to detached dwellings.

• Median house price (mid-2025): ~$1.44 million (CoreLogic)
• Median unit price (mid-2025): ~$665,000 (CoreLogic)
• 10-year house CAGR: approximately 5.5–6% (CoreLogic)
• 10-year unit CAGR: approximately 3–4% (CoreLogic)
• Days on market (houses, 2025): approximately 28–32 days — well below Melbourne’s metro average

This context matters because forecasts are only as reliable as the trend they extrapolate from. Murrumbeena’s track record provides a relatively solid foundation for measured optimism heading into 2026 and 2027.

What Is the Murrumbeena Property Price Forecast for 2026 and 2027?

No forecast can guarantee outcomes, but combining published outlooks from credible research houses gives a useful directional range. Herron Todd White’s (HTW) Month in Review (early 2026) placed Melbourne’s established middle-ring suburbs — a category that squarely includes Murrumbeena — in the “rising” phase of the property clock, with projected annual growth of 5–8% for quality housing stock in well-connected locations through 2026.

Domain’s 2026 Property Forecast Report forecast Melbourne’s overall house market to grow between 4% and 7% across 2026, with premium middle-ring suburbs anticipated to outperform the city-wide average due to constrained land supply and school-zone premiums. Applying the upper end of that range to Murrumbeena’s mid-2025 house median suggests a possible price of $1.54–$1.55 million by late 2026, and potentially $1.60–$1.65 million by end 2027 if growth tracks the historical average of 5.5–6% annually.

For units, Domain and SQM Research both flag Melbourne’s inner-to-middle ring apartment segment as benefiting from rental demand and affordability-driven purchasing. A 3–5% annual gain for well-located Murrumbeena units across 2026–2027 is consistent with these outlooks, pointing to a median unit price in the $685,000–$700,000 range by end 2026.

It is worth emphasising that these projections are directional ranges derived from published research, not guarantees. Buyers and investors should consult a licensed property professional alongside their own due diligence. For a broader view of where the national market is heading, the property market forecast for Australia 2026–2030 explores capital city and regional dynamics in detail.

What Is Driving Demand in Murrumbeena Through 2026?

Several structural and cyclical factors are converging to support Murrumbeena’s price outlook over the next 18 months.

Interest Rate Easing

The Reserve Bank of Australia (RBA) cut the official cash rate by 25 basis points in February 2025 and again in May 2025, bringing it to 3.85% as at mid-2025, with market economists at Commonwealth Bank and Westpac forecasting one to two further cuts before the end of 2025. Lower borrowing costs directly expand buyer capacity, and Murrumbeena, sitting at the premium end of Melbourne’s middle ring, is particularly sensitive to improved serviceability. For more on this dynamic, the analysis of interest rates and property prices in 2026 is a useful companion read.

School Zone Premium

Murrumbeena sits within the catchment of Murrumbeena Primary School (consistently rated among Glen Eira’s top government primaries) and is within reasonable distance of sought-after secondary options. Domain’s school zone research indicates properties in strong public school catchments command a premium of 10–15% above comparable properties outside those zones. This acts as a structural price floor that rarely retreats, even in softer markets.

Infrastructure and Connectivity

The suburb is served by two train stations (Murrumbeena and Carnegie stations on the Frankston line), providing direct City Loop access in under 20 minutes. The ongoing Melbourne Level Crossing Removal Program has transformed the Carnegie and Murrumbeena road-over-rail sections, adding new open space and retail activation that has improved the suburb’s amenity score materially.

Low Vacancy and Rental Pressure

SQM Research data for Q1 2026 recorded Murrumbeena’s residential vacancy rate at approximately 1.1%, well below the 3% level economists consider “balanced.” This tight rental market supports investor confidence and underpins holding values across the suburb.

• RBA cash rate: 3.85% as at mid-2025, with further cuts forecast (CBA, Westpac)
• School zone premium: 10–15% above non-catchment comparables (Domain research)
• Murrumbeena vacancy rate: ~1.1% (SQM Research, Q1 2026)
• Level crossing removal: two grade separations completed, adding open space and retail

What Are the Rental Yields in Murrumbeena?

Rental yield is often the deciding metric for investors choosing between suburbs. According to CoreLogic data as at early 2026, Murrumbeena’s gross rental yield for houses sits at approximately 2.7–2.9%, which is broadly consistent with other premium Melbourne middle-ring suburbs. Unit yields are considerably stronger at around 3.8–4.2% gross, reflecting the lower entry price relative to achievable rents.

Median weekly rents for Murrumbeena houses are around $780–$820 per week, while two-bedroom units typically achieve $490–$540 per week, according to Domain rental data from Q1 2026. The tight vacancy environment means these rents have been rising at roughly 5–7% annually since 2023, and HTW’s 2026 commentary flags continued upward rental pressure in Melbourne’s middle ring through at least mid-2027.

Investors comparing Murrumbeena with other Melbourne suburbs should also review the Melbourne property forecast for 2026, which benchmarks yield expectations across key precincts city-wide.

What Are the Key Risks to the Murrumbeena Property Outlook?

A balanced forecast must address downside scenarios alongside the optimistic case.

Macro Risks

If inflation proves stickier than the RBA expects and rate cuts are delayed or reversed, buyer capacity will be compressed again. ANZ’s base case (May 2026) does not anticipate any rate increases through 2027, but a deteriorating labour market or an external shock could change that calculus quickly.

Supply Additions

Glen Eira Council’s strategic planning framework permits medium-density development along key activity corridors. Any significant uplift in approved apartment supply in Carnegie or Oakleigh East, which border Murrumbeena, could temper unit price growth without materially affecting detached house values.

Affordability Ceiling

At a median house price of around $1.44 million, Murrumbeena is already at the top end of what a dual-income household earning median wages can comfortably service. This limits the pool of potential buyers and means growth is more likely to track inflation-plus rather than deliver outsized capital gains.

State Government Land Tax Changes

Victoria’s revised land tax thresholds, introduced in 2024, have increased holding costs for investment properties. Some investors have responded by selling, which has modestly increased stock levels. If that trend accelerates, it could act as a mild headwind to price growth for units in particular.

How Does Murrumbeena Compare with Other Melbourne Suburbs?

Context is useful for prospective buyers who are also evaluating alternatives. Murrumbeena’s median house price of approximately $1.44 million places it above the broader Melbourne median (approximately $920,000 per CoreLogic, early 2026) but below prestige pockets like Malvern East and Armadale. Its yield profile and vacancy rate are comparable with Bentleigh, Carnegie, and Caulfield North — suburbs that share similar school, transport, and amenity credentials.

For buyers or investors considering other capitals alongside Melbourne, the Brisbane property forecast for 2026 offers a useful comparison of yield and growth dynamics in Australia’s fastest-growing capital city market.

Within Melbourne’s south-eastern corridor, Murrumbeena stands out for the relative scarcity of housing stock that comes to market. CoreLogic counts a turnover rate of approximately 3.5–4% of total dwellings per year, meaning fewer than 150 houses typically transact in a given year. That low liquidity amplifies price sensitivity on both the upside and downside.

What Should Buyers and Investors Do Now?

The current window — with rates easing, stock still relatively tight, and rental demand firm — is generally viewed by HTW and independent buyer advocates as a constructive entry point for Murrumbeena. That said, timing the market is less reliable than buying quality assets in proven locations and holding over a full cycle.

• Buyers: Focus on properties with renovation upside, north-facing blocks, or proximity to either train station, as these attributes have historically commanded the strongest resale premiums in Glen Eira.
• Investors: Units in Murrumbeena offer meaningfully better gross yields than houses and continue to attract strong rental demand from young professionals and downsizers.
• Sellers: Spring 2026 is anticipated by most agents and research houses to be a competitive selling season as buyer confidence builds on the back of rate relief and pre-election sentiment.

All strategies should account for individual financial circumstances, holding capacity, and independent legal and financial advice.

Conclusion

The Murrumbeena property forecast for 2026 and 2027 is cautiously optimistic. Published research from HTW, Domain, and SQM Research collectively points to house price growth in the 5–7% annual range, underpinned by rate easing, chronic under-supply, strong schools, and a vacancy rate well below equilibrium. Unit growth is likely to be more moderate at 3–5% per annum, with yield-focused investors finding reasonable value relative to comparable inner-south suburbs. Risks are real but manageable for buyers with adequate buffers and a medium-to-long-term horizon. As always, the best decisions in real estate are grounded in current local data, professional advice, and a clear understanding of your own financial position.