Melbourne's Property Trends

Industry forecasts suggest Melbourne's housing market will outperform other capital cities, driven by population growth, economic recovery, and immigration. Melbourne's population grew by over 186,000 people in 2023, the highest among Australian states (Urban Property Australia). With interest rates expected to decrease, market confidence may strengthen, potentially leading to 5-7% annual growth over the next two years (Property Update). 

Key property types expected to lead the market in 2025: 

Family-Friendly Homes: Demand for spacious, family-oriented properties in established areas will remain high. The median price for four-bedroom homes in Melbourne's metropolitan areas is approximately $911,500 (REIV Home). Houses with renovation potential and proximity to schools will be particularly sought after. 

Townhomes and Villa Units: Gaining traction as a middle ground between apartments and detached houses, especially in inner and middle-ring suburbs. Melbourne has seen a 20% increase in demand for these properties over two years. Average prices in inner suburbs range from $900,000 to $1.2 million (REIV Home). 

Apartments in Premium Locations: Well-located apartments in premium areas will experience renewed interest. Melbourne's rental market vacancy rate is currently 1.6% (SQM Research). Rents for premium apartments have increased 10% over the past year, presenting a valuable opportunity for homebuyers and investors. 

With the market holding firm and inflation expected to ease, increased buyer activity is anticipated. Melbourne's consistent performance over the past four decades suggests a positive trajectory ahead. 

Contact your local Marshall White sales specialists for expert guidance on navigating Melbourne's prestige property market into 2025 and beyond. 

Image Source: The Address Project - https://www.marshallwhite.com.au/project/380-albert-street-east-melbourne-vic-1529783/