Victoria’s Property Market Poised for a Major Revival — Why Now Is the Prime Time to Invest in Melbourne & Regional Victoria
After nearly two years of stagnation, Victoria’s regional property markets are showing clear signs of a comeback — and the data now points to an imminent phase of capital growth.
While other states such as Queensland, South Australia, and Western Australia have been enjoying strong momentum, Victoria’s pause is now transforming into opportunity. For investors who understand the power of timing, this could be the ideal moment to re-enter or expand in Melbourne and outer Melbourne markets before prices take off again.
The Evidence Is Clear: Regional Victoria Is Heating Up
Hotspotting’s analysis of sales activity detected the first stirrings of renewed buyer activity in early 2025, and the most recent quarterly data confirms that sales volumes are now surging across leading regional centres.
In fact, sales in regional Victoria are now 16% higher than a year ago and a remarkable 28% higher than the same quarter two years prior — the strongest figures since the post-COVID property boom of late 2021.
Revival
The revival is being led by key regional powerhouses:
- Greater Bendigo: Sales volumes are up 41% year-on-year, signalling a market awakening that typically precedes price growth.
- Geelong: Strong, consistent activity shows renewed buyer confidence and growing competition.
- Shepparton: The number of property sales in the first half of 2025 was 35% higher than in 2024 and 65% above 2023 — clear evidence of momentum.
- Ballarat: Sales in the latest quarter were 28% higher than a year ago, marking the end of a quiet period and the beginning of a solid revival.
- Wodonga: Also seeing an uplift as affordability and lifestyle demand attract new residents.
These increases are not random — they’re the first stages of a market cycle upswing. And history tells us that when sales volumes rise, price growth inevitably follows.
Lifestyle Migration Fueling Demand
A growing number of Melbourne residents are trading city congestion for lifestyle-rich regional communities, drawn by affordability, space, and work-from-home flexibility.
This population shift is placing upward pressure on demand for homes across Victoria’s key regional cities — a factor that will continue to tighten supply and drive prices higher.
For investors, this movement is creating dual benefits:
- Immediate rental demand, driven by population inflows.
- Medium-term capital growth, as supply struggles to keep up.
Why Timing Is Everything
For the past two years, Victoria has lagged behind the national growth cycle. That means many high-quality properties remain undervalued compared to similar markets in other states.
But that’s changing — fast. The window to secure well-priced properties in Melbourne and regional Victoria is closing as demand accelerates and confidence returns.
The best investors move before the crowd, not after it.
What to Watch Out For
It’s important to note that Victoria has higher land tax and stamp duty costs compared to other states. The state government has also introduced new or increased property-related taxes, which can impact overall investment costs. It is imperative to select best fit location and property type.
However, these factors haven’t deterred the surge in activity — because the potential for strong capital growth is now outweighing short-term costs.
Bottom Line: The Next Growth Cycle Has Begun
Victoria’s regional and outer-Melbourne property markets are on the cusp of a powerful rebound. Sales momentum, population shifts, and renewed affordability appeal are converging to set up a prime investment window.
If you’ve been waiting for the right time to enter the Victorian market — this is it.
Smart investors who act now are likely to benefit from the next wave of capital growth as prices strengthen through late 2025 and beyond.
Australian Property Market Update