Melbourne Property Market 2025

Revival: Why Now Is the Time to Buy

The revival of the Melbourne property market, which was foreshadowed at the beginning of 2025, is now strongly confirmed by our latest analysis of sales data. Both home buyers and investors are taking advantage of the value Melbourne offers compared to other Australian cities.

While markets in Sydney, Brisbane, and Perth have surged in recent years, Melbourne prices have fallen—positioning the city as one of the most affordable capital markets. Today, Melbourne property is cheaper than Brisbane and Sydney, and sits at a similar price point to Adelaide and Perth.

Strong Fundamentals Driving Demand

Melbourne’s market strength is underpinned by two key drivers:

Population Growth – Melbourne continues to experience strong population increases, largely through overseas migration.

Infrastructure Investment – Billions of dollars in major projects are generating jobs, economic activity, and long-term demand for housing.

These fundamentals are now translating into rising buyer activity from both owner-occupiers and investors.

Sales Surge to Post-Pandemic Highs

Our latest sales data reveals that quarterly sales in Greater Melbourne during June were the highest since the COVID-19 boom peak in December 2021.

This resurgence is being driven largely by the unit, townhouse, and apartment market. In fact, attached dwelling sales have reached their highest quarterly levels since 2021, only marginally below that pandemic-era peak.

Six months ago, units made up 34% of total sales.

Three months ago, this grew to 35%.

Today, units represent 37% of all residential sales across Greater Melbourne.

Standout Growth Areas

Melbourne’s resurgence is being led by three standout municipalities: Frankston, Melbourne (CBD & surrounds), and Hume.

Frankston & the Far South East – This region, highlighted in our Price Prediction Report earlier this year, is surging. Suburbs such as Frankston, Frankston South, Langwarren, and Seaford are benefiting from both affordability and the boost of a billion-dollar hospital project.

City of Melbourne – Affordable unit markets in Carlton, North Melbourne, and the CBD are thriving, with sales volumes climbing as buyers take advantage of value opportunities close to the city.

Hume – With relative affordability compared to inner suburbs, Hume is attracting steady buyer and investor demand.

Key Considerations for Investors

While opportunities are strong, investors must keep in mind that Victoria carries the highest property taxes in Australia, with a state government known for introducing new levies. Despite this, the fundamentals are powerful:

Low supply of land and new dwellings.

Strong population growth continuing to fuel demand.

Tight rental market driving higher yields.

Potential interest rate reductions that could accelerate this next growth cycle.

The Bottom Line

Victoria is on the cusp of a new cycle of capital growth. Rising demand, low supply, and affordability relative to other capitals are creating strong opportunities for both home buyers and investors.

The time to act is now—whether you’re looking to buy a home or secure an investment property ahead of the next wave of growth.

Victorian Regional Property Report

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