Key takeaways
- New one-bedroom supply hit its lowest level since 2008, with only about 400 units completed in Q1 2025.
- Most new one-bedroom construction is build-to-rent, not for sale — so the stock a foreign buyer can actually purchase is thinner than headline supply suggests.
- Median rent reached A$600 per week in March 2025, up 4.5% year-on-year, with one-bedroom rents growing 4.2% and yields of 4.3–5.1%.
- Greater Melbourne vacancy was 1.5% in March 2025 and tightened further to 1.1% by October 2025.
- One-bedroom prices fell 1.3% over the prior year before rebounding 1.5% in Q1 2025 — a bottoming signal, though Melbourne values overall have since softened again.
Melbourne’s new 1-bedroom supply has hit its lowest level since 2008, with only 400 units completed in Q1 2025. Most new construction is build-to-rent-not for sale-while demand surges from students, professionals, and migrants priced out of 2-bedroom units.
Are You Missing Out While Others Lock in High Rents?
Rents are near all-time highs:
Median rent: $600/week (March 2025), up 4.5% YoY.
1-bedroom rent growth: 4.2% annually, outperforming larger units.
Rental yields: 4.3–5.1%, with CBD units most resilient.
Vacancy rates:
- Inner-City (0-4km): 3.0% (March 2025), up from 2024 but still below the 3.3%
long-term average.
- Greater Melbourne: 1.5% (March 2025), down from 1.8% in February.
Have Prices Already Started Rising?
1-bedroom prices: Fell 1.3% over the past year but rebounded 1.5% in Q1 2025.
Sales activity: 1,200 Inner-City transactions in Q1 2025-the strongest start since 2022.
This signals a bottoming out—and a new upward trend. If you wait too long, the next time you check prices, they'll be higher.
What Are the 3 Smartest Projects Left to Buy in Melbourne Right Now?
1. Atlas Melbourne by Setia- Is This Your Last Chance at CBD Entry Pricing?
Located in a prime position, Atlas Melbourne is a well-designed, high-quality development with a strong track record.
Starting Price: $732,000 to $750,000 (1 bed, 1 bath, 52 sqm)
Bigger Options (with MPR): $778,000 to $791,000 (59–61 sqm)
Why It Stands Out:
- Brand new inventory
- Prices still starting in the low $700Ks
- Strong per-square-metre value
- High floor availability (views, natural light)
- Ideal for single professionals or couples
These units are priced to move. High rental demand in the CBD ensures consistent income. |
2. Aria Melbourne – Premium Living with Study + Car Park Options
Aria is perfect for owner-occupiers who want style, functionality, and extra space. With study areas and car parks, these homes are rare gems in the 1-bedroom category.
Prices from: $795,000 to $960,000
Unit Sizes: Up to 91.9 sqm (inclusive of car park + study)
Why Aria Wins:
- Car park options available (from $900K)
- Designed with lifestyle in mind
- Ideal for migration, education buyers
- Boutique developer with luxury finishes
Aria is more than an investment—it’s a future-proof lifestyle purchase. |
3. R. Evolution– Smart Buyers’ Darling
This project balances location, value, and future capital upside—perfect for investors or young buyers.
Prices: $747,500 to $905,200
Sizes: From 61 sqm to 86 sqm (some with study)
Why It Makes the List:
- Flexible floor plans with studies
- High ceilings and natural light
- Strong rental demand in surrounding precinct
- Near future Metro upgrades
| This is perfect if you want both capital growth and high yield. |
Is Melbourne Still Worth It Compared to Singapore?
Absolutely. Let’s compare:
| Feature | Singapore (HDB) | Melbourne (1-Bedroom CBD) |
|---|---|---|
| Budget | S$800K | A$732K - $905K |
| Size | 45-64sqm | 52-91.8sqm |
| ABSD | 20% on 2nd home | 0% |
| Rental Yield | 2-3% | 4.3-5.1% |
| Usage | Owner-occupy only | Rent, live, or sell anytime |
Now you know why Singaporeans are choosing Melbourne right now. In Singapore, $800K SGD barely gets you a resale HDB.
In Melbourne, that same budget buys you a CBD luxury 1-bedroom, with strong rental returns, future resale upside, and lifestyle perks.
- No ABSD
- Freehold ownership
- Rental yields 4.3% to 5.1%
- Stamp duty incentives for international buyers (varies by VIC policy)
- Migration eligibility through real asset ownership
- Position your child for world-class education
And did I mention Melbourne ranks as the #1 student city in Australia and consistently in the Top 10 Most Livable Cities in the World?
Secure Your Unit Before Prices Climb Again
You’ve seen the numbers. You know the urgency. You understand the value.
Now, Can You Really Afford to Wait?
- Units selling weekly — not monthly
- Renters are turning into buyers—quickly.
- Government unlikely to boost for-sale supply in the short term
- Developers can’t build fast enough for the next wave of demand.
- Rental yields are compressing as prices recover
- Prices already turning around and once a development is 50–60% sold, prices go up.
You’re in a rare window of choice and affordability. This is your chance to make a move before everyone else catches on. Message us now!
Josh Tay