Homeowners in Melbourne’s leafiest suburbs are commanding significantly higher property values compared to those in less green areas, according to a recent analysis by the Real Estate Institute of Victoria (REIV). The study revealed that suburbs with abundant tree coverage and good access to parks saw median house prices rise by as much as $237,000 above the city average during the June quarter of 2026.

REIV Chief Executive Tony Balazs said the link between greenery and property values was striking. He explained that many suburbs lacking substantial tree coverage could see considerably lower median prices than their more verdant neighbours, despite similar access to amenities such as public transport and schools. “It’s the green component that’s so much more valuable,” Balazs said.

The research highlighted Mont Albert and Surrey Hills as the two greenest suburbs in Melbourne, each with median house prices exceeding $1.9 million. Heathmont ranked third, with a median price of $1,075,000, outpacing neighbouring Bayswater and Bayswater North by more than $150,000, primarily due to its richer tree canopy.

While some of Melbourne’s leafy suburbs maintain high property values, six green suburbs—Boronia, Ringwood East, Croydon, Croydon South, Mooroolbark, and Heidelberg Heights—recorded median house prices below $1 million. Balazs suggested that these areas could experience notable price growth in the future, driven in part by their established green spaces, parks, and the potential for reduced household cooling costs associated with tree cover.

Conversely, the study found that several of Melbourne’s most affordable suburbs—Weir Views, Rockbank, Wyndham Vale, Thornhill Park, and Harkness—were among those with the lowest tree density in the city. Median house prices in these areas ranged between $560,000 and $625,000.

Local real estate agent Tim Heavyside, who works in Mont Albert and Surrey Hills, said the presence of a lush tree canopy often enhances the appeal of a street during auctions. “I’ll stop talking for a moment and just listen to the rustle of the trees, it’s quite magical,” he said, underscoring the intrinsic value greenery adds to residential neighbourhoods.

The REIV’s findings underscore a broader recognition that environmental features and urban greenery are increasingly influential factors in Melbourne’s housing market, affecting not only lifestyle but also financial outcomes for homeowners.