Michael Yardney , Founder
Melbourne’s housing market continues to show positive momentum, although the pace of growth has moderated slightly in recent months.
Melbourne property values recorded their third consecutive monthly increase:
- April 2025: +0.2%
- Quarterly Growth (February–April 2025): +1.0%, the strongest quarterly gain since October 2023
However, despite recent improvements, Melbourne housing values remain 5.4% below their March 2022 peak.
Melbourne housing market trends
| Timeframe | Δ Property Price |
|---|---|
| Monthly (April 2025) | +0.2% |
| Quarterly (Feb-Apr 2025) | +1.0% |
| Since Peak (March 2022) | -5.4% |
Source: Cotality Australia
Several factors are positively influencing Melbourne’s property market:
- Upcoming stimulatory housing policies and further anticipated interest rate cuts, potentially moderate price growth in the short term.
- Lower advertised stock levels, down 1.1% compared to last year, reducing supply pressures
- Relative affordability, with Melbourne’s median dwelling values significantly lower than in Sydney (approximately $410,000 less)
Advertised listings have slightly decreased, supporting prices. However, affordability remains a significant barrier:
- Median Dwelling Value: Approximately $786,000
- Years to Save 20% Deposit (Median Household Income): 10.6 years
- Percentage of Income Required for Median Rent: 33%
Melbourne house prices – the longer-term data
Melbourne’s housing outlook remains cautiously optimistic:
Positives:
- Potential further rate cuts in 2025
- Stimulative housing policies from the recent federal election
- Persistent housing undersupply
Challenges:
- Continuing affordability issues
- Lower population growth is easing demand pressures
- Ongoing economic uncertainty is affecting consumer sentiment
Overall, Melbourne’s property market is expected to experience steady yet moderate growth, influenced by a balance of supportive monetary policies and enduring market constraints.
