Michael Yardney , Founder
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As Melbourne shakes off the winter chill, the city’s property market is showing consistent warmth, albeit at a moderate pace. According to the latest housing market update for September 2025, Melbourne is experiencing a steady and sustained recovery, marking its seventh consecutive month of growth.
While the pace might be more measured compared to other capitals, the underlying trends point towards a healthy and active spring selling season. Let’s dive into the key statistics shaping the Melbourne market right now.
Dwelling Values: Consistent and Considered Growth
Melbourne’s property values continued their upward trajectory in August, though at a rate that suggests sustainable growth rather than a runaway boom.
[notes]The positive momentum, which began after the February rate cut, has now firmly pushed the annual growth rate into positive territory.[/notes]
- Monthly change (August): Dwelling values are up 0.3%.
- Quarterly change (last 3 months): Values have increased by 1.0%.
- Annual change (last 12 months): The market has seen a 1.4% rise, the highest 12-month change recorded since June of last year.
The Great Divide: Houses Continue to Outpace Units
A significant trend in the Melbourne market is the clear performance gap between houses and units. The market for detached houses remains the primary driver of growth, consistently showing stronger results. In contrast, the unit market has been a drag on the city’s overall headline growth rates.
Over the past year, house values have climbed by 2.1%, while unit values have seen a slight fall of 0.4%. This divergence highlights different dynamics at play within the city’s property landscape.
| Metric | Detached Houses | Units |
|---|---|---|
| Median Value | $956,305 | $622,939 |
| Monthly Value Change (Aug) | +0.4% | +0.2% |
| Annual Value Change | +2.1% | -0.4% |
| Gross Rental Yield | 3.1% | 4.8% |
Source: Cotality Australia
Melbourne Market at a Glance
For those looking for a quick snapshot, here are the vital statistics for the Melbourne property market as of August 2025. Notably, the volume of sales has seen a healthy 8.0% increase over the past year, indicating renewed activity and confidence in the market.
| Key Metric | Figure |
|---|---|
| Median Dwelling Value | $803,194 |
| Median House Value | $956,305 |
| Median Unit Value | $622,939 |
| Weekly Rent (Houses & Units) | $575 |
| Gross Rental Yield (Units) | 4.8% |
| Total Sales (Past 12 Months) | 96,470 |
| Annual Change in Sales Volume | +8.0% |
Source: Cotality Australia
What’s Next for Melbourne?
The outlook for Melbourne’s housing market is increasingly positive. The broad-based rise in values is set to continue into spring, a period that typically sees a seasonal uplift in listings and activity.
Buyer demand is being bolstered by a healthier economic environment, where rising consumer sentiment, wage growth outpacing inflation, and a tight jobs market are key factors. While stretched affordability remains a significant factor that will likely keep growth in check, the foundations are in place for a very active spring for the Melbourne housing market.
