Melbourne Property Market Snapshot: Why Now Is a Smart Time to Buy

The Melbourne property market is showing strong signs of recovery and momentum as we move further into 2025. After a period of uncertainty and slight corrections in 2024, fresh data reveals that Melbourne is now leading the charge in national housing growth, offering buyers a compelling opportunity to enter the market before competition intensifies.

This blog explores the key trends shaping the current property landscape across Melbourne and greater Victoria—and why acting now could be a strategic move for buyers.

Melbourne Leads the Nation in Price Growth

Melbourne has recorded the fastest growth in home prices among all capital cities in Q1 2025. According to industry data, values have increased by 0.7% this quarter, reversing a previous 1.3% fall at the end of 2024.

This resurgence in growth positions Melbourne as a national front-runner and signals a renewed sense of confidence in the market. For many buyers who had adopted a wait-and-see approach, the trend shift is a clear indication that the market has regained traction and is moving upward again.

Consistent Monthly Gains Driving Momentum

One of the most significant developments in early 2025 is Melbourne’s consistency in monthly house price gains. So far this year, the median house price has grown by approximately $9,000, equating to a 1% increase. This steady growth suggests the recovery isn’t a one-off spike—it’s part of a broader upward trend.

With prices rising month-on-month, buyers may find that waiting to enter the market results in paying more for the same property just a few months down the line.

The Market Recovery Is Well Underway

Melbourne’s property market experienced a 2.1% dip throughout 2024, largely due to economic caution, rate rises, and shifting buyer sentiment. However, in the first four months of 2025, those losses have been steadily recovered, indicating a genuine market turnaround.

This kind of recovery typically sets the tone for a new growth cycle. As buyers re-enter the market with renewed confidence—and stock remains tight—competition is likely to increase, pushing values higher throughout the year.

Why This Matters for Buyers

For those considering a purchase in Melbourne or greater Victoria, the current climate presents a rare opportunity. Several factors are aligning in buyers’ favour:

• Borrowing power is improving, particularly following the latest interest rate cut

• Demand is rising, but hasn’t yet reached peak competition levels

• Property values are on the rise, creating an ideal entry point before prices surge further

  
  

Acting now gives buyers the chance to secure quality property in high-demand areas before market conditions become more aggressive later in the year.

Final Thoughts: Buy with Strategy

While the market is heating up, success still comes down to how you buy—not just when. Strategic buyers are gaining access to properties before they hit the major portals, relying on agent relationships, data-driven decisions, and expert negotiation.

At Walsh Brown Property, our approach ensures clients access the full market—including off-market and pre-market opportunities—and make informed decisions grounded in long-term value and growth potential.

With Melbourne leading the recovery and strong monthly gains being recorded, now is the time to explore your options and plan your next move.

Contact us today at aly@walshbrownproperty.com.au or 0411 771 181 for expert advice tailored to your property goals.

*** Disclaimer: The information provided in this blog is intended for general informational purposes only. While we have made every effort to ensure the accuracy and reliability of the content, it should not be considered as personalised or professional advice. The homebuying process can vary based on individual circumstances, property types, and location-specific regulations.