Melbourne property prices actually haven't recovered from their 2022 peak, and that's before adjusting for inflation. I believe rents are down in real terms as well.
Things have been crazy for a long time, but I am actually optimistic for Melbourne specifically - the construction rate is up and the state government has been decreasing the power local governments have to block or delay development. If this continues, housing affordability should improve. My main concern is that a change of government may put an end to it, but I hope not.
Some details about what VIC is doing differently in this AFR article if you're interested (archive link because original is paywalled):
Things have been crazy for a long time, but I am actually optimistic for Melbourne specifically - the construction rate is up and the state government has been decreasing the power local governments have to block or delay development. If this continues, housing affordability should improve. My main concern is that a change of government may put an end to it, but I hope not.
Some details about what VIC is doing differently in this AFR article if you're interested (archive link because original is paywalled):
https://archive.md/yeDxF