Michael Yardney , Founder
The spring selling season is in full swing, and while headlines might be screaming about booming markets in other parts of the country, Melbourne is quietly and confidently carving its own path. The latest October 2025 housing market data from Cotality reveals a market that’s not about explosive sprints, but about a sustainable, steady marathon.
For the eighth consecutive month, Melbourne’s property values have climbed, proving the city’s resilience and enduring appeal. Let’s dive into the key insights and what they mean for you.
The Story in Numbers: A Market on the Rise
September saw Melbourne’s dwelling values post a 0.5% gain, an encouraging step up from the 0.3% rises recorded in the two preceding months. This acceleration, while modest, signals growing confidence as we head into the year’s end.
While this pace remains at the “softer end of the growth spectrum” compared to the national benchmark, the consistency is what truly stands out.
It points to a market that is healthy and growing, rather than overheating.
Here’s a snapshot of Melbourne’s current performance:
| Metric | Median Value |
|---|---|
| Median Dwelling Value | $805,888 |
| Median House Value | $953,454 |
| Median Unit Value | $638,979 |
Source: Cotality Australia
And here’s how the growth is tracking over time:
- Past Three Months: 1.0% increase
- Past Twelve Months: 1.9% increase
- Average Annual Growth (Last 10 Years): 3.3%
This data paints a picture of a mature market finding its footing and building momentum at a sensible pace.
Melbourne’s Affordability Advantage
One of the most compelling stories to emerge from this month’s data is Melbourne’s growing affordability, especially when compared to its northern counterpart, Sydney.
The report highlights a crucial fact: the value gap between Sydney and Melbourne home values hasn’t been this wide since May of 1999.
For buyers, this is a significant “window of opportunity.” While other capital cities are seeing affordability stretched to its limits, Melbourne presents a more accessible entry point into a major metropolitan market, without sacrificing the potential for long-term, stable growth. This affordability edge is a powerful drawcard for first-home buyers, upgraders, and investors alike.
National Tailwinds Supporting the Market
It’s important to remember that Melbourne’s market doesn’t exist in a vacuum. Several powerful economic factors are helping to bolster buyer confidence and activity across Australia. These include:
- Increased Borrowing Capacity: Thanks to lower interest rates, the average household has seen its borrowing power increase by about 7% since February.
- Strong Consumer Sentiment: Confidence is up 12.8% compared to a year ago, a vital ingredient for high-commitment decisions like buying a home.
- Real Wage Growth: With inflation-adjusted wages at their highest point since mid-2020, households have more disposable income.
- A Tight Jobs Market: A low unemployment rate of just 4.2% provides a foundation of security for homebuyers.
What Lies Ahead?
All signs point to a solid end to the year for the Melbourne property market.
The combination of consistent value growth, a distinct affordability advantage, and supportive economic conditions creates a recipe for a healthy and active spring season.
Unlike the frenetic pace seen elsewhere, Melbourne offers a more balanced environment. Buyers have an opportunity to enter a major market at a relative discount, while sellers can be confident in the steady, underlying demand that has driven growth for eight straight months.
