Melbourne’s real estate market has demonstrated resilience in recent months, signaling a potential shift towards recovery.After a prolonged period of value declines, February 2025 marked a turning point with a 0.4% rise in property values.This uptick was driven primarily by houses, which saw a 0.4% increase, while units experienced a modest 0.2% rise. Property Update+1Metropole+1
The auction scene further underscores this positive momentum. In the week ending March 23, 2025, Melbourne witnessed 1,263 properties scheduled for auction, with 662 successfully sold.
Interest rates have played a pivotal role in shaping market dynamics. Recent economic indicators suggest that the worst may be over for Melbourne’s housing market, with buyer demand starting to pick up, buoyed by expectations of lower interest rates. This sentiment is further supported by the Reserve Bank of Australia, which has maintained a cautious approach to rate hikes, aiming to balance inflation control with economic growth.Australian Financial Review
Government initiatives have also significantly influenced the market landscape. The Victorian Government’s commitment to increasing housing supply is evident through plans to unlock and rezone surplus government land, aiming to deliver around 9,000 homes across 45 sites in both metropolitan Melbourne and regional Victoria. At least 10% of these homes are designated as affordable housing, reflecting a strategic focus on inclusivity. Planning
Comparatively, Melbourne’s performance aligns with broader national trends. Over the last month, Australian capital dwelling prices increased by 0.4%, with Melbourne’s property prices remaining flat over the last week and increasing by 0.4% over the last month. However, it’s noteworthy that Melbourne’s prices are 3.2% lower compared to 12 months ago, indicating a complex market recovery.
If you’re thinking about buying, selling, or leasing property in Melbourne, we’re here to help. Our experienced team is dedicated to providing personalized service tailored to your unique needs, whether you’re a first-time buyer, an experienced investor, or looking to sell your current home for the best price. We also offer expert advice for those seeking a new leasing agent or wanting to expand their property portfolio.
Don’t hesitate to reach out to us via email or give us a call. We’d love to discuss how we can help you achieve your real estate goals and provide you with the guidance and support you need every step of the way. Let’s make your next property move a success together! Don’t hesitate and call our office for further assistance.