Melbourne Property Prices Are Rising Again
Josh Tay
Last Updated on 08-Aug-2025
I knew it! After watching Melbourne’s property market closely, the signs are clear — the anticipated rebound is beginning. If you’re considering property for migration, education, retirement, or high-return investment, Melbourne is calling your name.
Let me walk you through the latest market conditions, price movements, and why this moment is ripe for action.
Why Melbourne? It’s rapidly becoming the smartest place to invest in real estate
- Melbourne is on track to overtake Sydney as Australia’s most populous city. More people means more demand for housing, a fundamental driver of property value growth.
- Diverse industries and expanding job opportunities provide a rock-solid foundation for property demand.
- Massive investments in transport, healthcare, and education are transforming Melbourne’s suburbs into highly desirable, family-friendly communities.
- Ranked among the world’s most liveable cities, Melbourne attracts students, families, retirees, and professionals — all seeking quality homes.
If you’ve been waiting for the right time to enter the market, 2025 is it.
Latest Market Snapshot: What’s Happening Right Now?
Auction Activity and Market Sentiment
During the recent Easter period, auction activity in Melbourne dipped sharply, only 146 homes went to auction compared to over 1,300 the previous week. This seasonal slowdown is normal, but what’s important is what happens next. Post-Easter, auction volumes are expected to rebound strongly, signaling renewed market energy.
Clearance rates remain solid, hovering above 60%, showing that buyers are active and vendors are confident. The market is cautiously optimistic, supported by falling mortgage rates and anticipated interest rate cuts that will make borrowing easier.
Price Movements: Modest Growth with Strong Potential
Melbourne's property prices have shown modest growth recently. Over the last month leading up to mid-April 2025, prices increased by about 0.6%, though they remain 2.4% lower than a year ago. Weekly increases were around 0.1%.
The median home price in Melbourne rose slightly to $778,000 in March 2025, up from $774,000 in February, signaling a slow but positive price movement.
Despite this, buyers with a $1 million budget are finding they get less property than a year ago. They face smaller homes, less land, and fewer options, especially in suburbs like Middle Park, Avonsleigh, Ringwood North, and Wandin North, where prices have risen or property sizes/features have diminished.
Despite this, buyers with a $1 million budget are finding they get less property than a year ago. They face smaller homes, less land, and fewer options, especially in suburbs like Middle Park, Avonsleigh, Ringwood North, and Wandin North, where prices have risen or property sizes/features have diminished.
This means property values are holding firm despite affordability pressures — a sign of underlying strength.
Supply and Demand Dynamics
New listings surged by 13.5% over the past year, giving buyers more choices and slightly easing competition. Yet, supply remains tight relative to demand, especially for family-friendly homes and townhouses.
This balance between supply and demand is crucial: it keeps prices stable and sets the stage for moderate growth as borrowing conditions improve.
What Does This Mean for You as an Investor?
Melbourne’s property market in 2025 offers unmatched opportunities. And the best part? You don’t have to search far — we have carefully selected projects and listings ready for you to explore and invest in today.
1. For Migration and Education Seekers
Melbourne’s reputation as a global education hub is unmatched, with world-class universities and top-tier schools attracting thousands of international students and families every year. Owning property here means tapping into a strong rental market fueled by steady student demand and families seeking quality living.
Prime areas like Monash and Frankston are hotspots for education infrastructure and promise long-term capital growth. To get started, check out our exclusive projects and listings in these sought-after suburbs:
- Explore Melbourne’s Premier Projects: Discover modern apartments and townhouses designed for comfort and convenience, perfect for students and families alike. Visit our full project portfolio here: Explore Projects in Melbourne
- Featured Listing:
Atlas Melbourne by Setia — Studio and 1-bedroom units in the heart of the city, starting from $473,000. Ideal for student rentals or first-time buyers.
Domain House, South Melbourne — 1 to 3-bedroom apartments offering proximity to universities and transport links. Prices from $535,000 to $1,370,000.
View these and more here: View Melbourne Listings
2. For Retirement and Lifestyle Buyers
Imagine retiring in a vibrant city that blends culture, healthcare excellence, and natural beauty. Melbourne’s coastal suburbs like Frankston, along with family-friendly middle-ring areas such as Blackburn and Berwick, offer affordable, comfortable living with growth potential.
Our curated listings include spacious homes and townhouses perfect for retirees seeking peace without sacrificing city accessibility:
Featured Listings:
Frankcom, Blackburn — 3-bedroom homes priced around $850,000, offering serene neighborhoods with excellent amenities.
Minta, Berwick — 3-bedroom residences from $643,645, ideal for lifestyle buyers wanting space and community.
Haven, Altona North — Modern 3-bedroom homes at $854,000 with great access to healthcare and leisure facilities.
Explore more lifestyle-focused properties here: Browse Retirement-Friendly Listings
3. For High-Return Investors
Melbourne’s rental yields, ranging from 4% to 6% in many suburbs, significantly outperform Singapore’s typical 3-4%. With the Australian dollar currently low against the Singapore dollar, your buying power is amplified — a rare advantage that won’t last forever.
Investing in emerging growth corridors like Whittlesea, Frankston, and Kalkallo can secure you long-term capital gains and strong rental returns. Our projects and listings in these areas are designed to maximize your ROI:
Hot Investment Projects:
BLVD - Stage 2 at Melbourne Square — A prestigious development offering modern apartments in the CBD, perfect for high-demand rental markets.
Cloverton Estate, Kalkallo — Affordable 3-4 bedroom homes starting from $549,000, positioned in a fast-growing suburb with excellent infrastructure.
Top Listings for Investors:
Cloverton Lot 37317 Delta 22 — 4-bedroom homes at $668,470, ideal for families and tenants seeking space.
River Valley, Sunshine North — Spacious 4-bedroom homes priced at $1,111,700, offering strong rental appeal.
See all investment-ready properties here: View Investment Listings
Discover detailed project info here: Explore Investment Projects
My Personal Take: Why I’m Excited — And You Should Be Too
Having worked with countless international investors, I see Melbourne’s 2025 market as a rare convergence of opportunity, affordability, and growth potential. The city’s fundamentals are rock solid, and early signs of recovery are unmistakable.
Remember, in property, timing is everything. Don’t wait until the market heats up and prices soar — secure your place in Melbourne’s promising future today.
Contact me now.