The Melbourne property market has seen its share of ups and downs over the past few years — leaving many buyers wondering whether 2025 is the right time to enter the market. With early signs of recovery and improving conditions, the answer may be more promising than expected.
📉 A Market That’s Finding Its Feet
After a softer market in 2024, Melbourne is showing signs of stabilisation in 2025. Experts predict house prices will grow by approximately 3.5%, with units forecast to rise by 4.6%. While this growth is moderate, it suggests that the market is beginning to find its feet creating opportunities for savvy buyers to enter before prices potentially climb further.
📊 Melbourne Property Price Growth (2021–2025)
The chart above highlights the cyclical nature of Melbourne’s market — from strong gains in 2021 to a correction phase through 2022–2024, and now a forecasted recovery in 2025.
📊 Interest Rates & Affordability
Interest rates remain a challenge, but there is growing speculation that they may ease in the second half of 2025. This could increase borrowing power and buyer confidence. Melbourne also remains more affordable than Sydney, making it a more accessible option for both homeowners and investors.
🌆 Why Melbourne?
Melbourne is more than a property market — it’s a world-class city. It continues to be one of the most livable cities in the World. With leading universities, cultural institutions, infrastructure projects, and a growing job market, the city is a magnet for skilled migration and long-term growth.
Victoria is also experiencing strong population growth, with projections indicating Melbourne will become Australia’s largest city within the next decade. This demographic pressure will continue to drive demand for housing in both established and growth suburbs.
🏘️ Where the Opportunities Are
Not all suburbs will perform equally. Inner and middle-ring suburbs with limited housing supply and strong owner-occupier demand are likely to see the strongest growth.
On the outskirts, growth corridors in the west, northwest and southeast continue to offer affordable entry points for families, first-home buyers, and developers — especially where infrastructure investment is high and communities are expanding.
✅ Final Thoughts
If you’re financially ready and planning for the long term, 2025 could be the right time to buy in Melbourne. With signs of recovery, potential interest rate cuts, and strong lifestyle appeal, Melbourne remains one of Australia’s most attractive markets.
As always, work with local experts, research growth areas, and choose properties with strong fundamentals. Your next opportunity might be right around the corner.
“Note: This article is for informational purposes only and does not constitute financial advice. Prospective buyers should conduct their own research and consult with financial advisors before making investment decisions.”
Thinking about buying in Melbourne? Contact our team today for expert guidance on where and what to buy. 🏡