Future-proofing your investment: The Metro Tunnel's impact on Melbourne property prices

The opening of Melbourne's Metro Tunnel on Sunday 30 November 2025 is set to reshape the city's property market as much as its transport network.

With faster, more direct rail links, apartments and houses near the five new underground stations, Arden, Parkville, State Library, Town Hall, and Anzac are expected to see increased demand.

WATCH: Come for a ride through the Metro Tunnel - opening Sunday 30 November.

Buyers and investors are already looking closely at developments in these precincts to take advantage of the improved connectivity.

New off-the-plan data from AD Group's FY26 Q1 Market Insights report shows that demand for units remained steady from July to September and in Victoria, First Home Buyers for off the plan apartments rose to 24 per cent.

This renewed activity is being shaped by affordability challenges.

The report introduced a new "up to seven hundred and fifty thousand dollars" price category this quarter because the supply of apartments under five hundred thousand dollars has become extremely limited.

According to the latest view.com.au data from November 2025, median house prices in South Melbourne are approximately $1,752,000 million while units sit at around $569,000

In Melbourne CBD, median unit prices around $620,000 (there is not enough data on houses) and Carlton has a median house price of approximately $1,320,000 and median unit prices of around $380,000

Over the past 12 months, houses in these areas have increased by roughly 5 to 6 per cent, while units have recorded slower gains and in some cases declines.

Rental yields average 3.0 per cent for houses and 4.0 per cent for units, reflecting steady demand in areas close to the new Metro Tunnel stations.

The Metro Tunnel's improved transport links are expected to increase competition for properties, particularly apartments, near the new stations.

Apartments offer a more affordable housing entry point than houses, which will enable workers in the medical, education, and public sectors to live close to their workplaces.

These new developments are well placed to benefit from the shift in lifestyle and connectivity, potentially leading to further capital growth for properties in close proximity to the tunnel.

The Metro Tunnel itself represents the largest transformation of Melbourne's rail network in more than 40 years.

Initially, under the "Summer Start" schedule, services will run every 20 minutes between West Footscray and Westall during weekday mid-day hours, with more frequent weekend services.

From 1 February 2026, the tunnel will operate full-time, with trains on the Sunbury, Cranbourne, and Pakenham lines running exclusively through the new route.

This will free up capacity elsewhere on the network and provide a turn-up-and-go style timetable, dramatically improving access between Melbourne's north-western suburbs, inner city, and south-eastern suburbs.