Kyneton Property Market Update 2nd Half 2026
Kyneton offers a perfect blend of country charm and modern convenience, with vibrant cafes, art galleries, and historic architecture. Surrounded by natural beauty and only an hour from Melbourne, it’s ideal for a relaxed yet connected lifestyle.
Property Trends
In Q2 2026, Kyneton recorded a median house price of $915,000 and a median vacant land price of $418,000. This represents an annual (Q2 2025 - Q2 2026) median price growth of 6.4% for houses and 5.1% for vacant land. When comparing Q2 2025 and Q2 2026 house sales declined by -25.5% (to 35 sales in Q2 2026), which confirms there is an undersupply of house market in Kyneton. This has helped support price growth even with cash rate hikes in 2026. Thus, now remains an ideal time for owners to transact and capitalize on their investments. The vacant land market is extremely small (with only 6 sales in Q2 2026) and there is no indication of new vacant land lots being created in 2026. This suggests more price growth (for both house and land) in the short-term.
Project Development
Kyneton plans to see approximately $96.5M of new projects commencing construction from 2026 onwards. Two residential projects are planned; however it will only deliver 7 new dwellings / houses. This will not meet the demand, as there were 178 house sales in 2025. The current undersupply in housing stock will continue, and more house price growth is expected for the rest of 2026.
Rental Market & Growth
House rental yields in Kyneton were 3.1% as of June 2026, lower than Macedon Ranges Shire (3.5%) and Melbourne Metro (3.2%). This is paired with a 5.7% median house rental price growth in the past 12 months, to $645 per week; along with a -5.9% decline in the number of houses rented (to 16 rentals in Q2 2026). This suggests an undersupplied house rental market, which is beneficial for investors; especially those looking for a more affordable option compared to Melbourne.
Vacancy Rates & Property Investment
Kyneton recorded a vacancy rate of 0.9% in June 2026, well below the Macedon Ranges Shire’s average of 2.1% and Melbourne Metro’s average of 1.6%. Vacancy rates have increased slightly in the past 12 months to June 2026, due to investors re-entering the rental market. However, a 0.9% vacancy rate is still significantly below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, indicating quicker occupancy of rental homes in Kyneton. This is an ideal environment for investors, even with a higher median house price (thus entry price) in the past 12 months to Q2 2026.
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