Market Snapshot: The City’s Fastest Recovery in Over Two Years
Melbourne’s market is accelerating after the cycle bottom, with 90% of suburbs rising and a median value at $805k. Rate cuts, renewed buyer confidence, and tight supply are driving record auctions. Investors and first‑home buyers have a timely window to act—data points to continued momentum across key suburbs.
“Melbourne is officially past the bottom of the cycle.”— Frank Valentic | Director of Advantage Property Consulting
1. What the Numbers Say
2. Why Buyers and Investors Are Back
- Demand‑Driven Supply Tightness
“Since Covid, a lot of owners held onto big homes because everyone wanted space, but that mindset is shifting,”says Chris Barrett, Boroondara director.
Baby‑boomers are downsizing, while new‑generation families are stepping in, creating rare buying opportunities. - Interest‑Rate Relief
“The three rate cuts we’ve had this year have reignited confidence,” says Frank Valentic, Advantage Properties buyer’s advocate.
Lower rates are making mortgages more affordable, expanding the buyer pool. - Stabilised Interstate Migration
Victoria’s population grew 1.8 % in 2024, the first positive net interstate migration in the post‑pandemic era.
Investors from Brisbane and Adelaide are spotting Melbourne as an “undervalued” growth engine. - Strong Auction Momentum
Auction sales in suburbs such as Hawthorn and Coolaroo have been hitting record prices, signalling a sellers‑market that will likely persist into the next season.
3. Quick Look – Top 5 House & Unit Suburbs (Sept 2025)
(Source: PropTrack AVM data, Sept 2025)
Bottom Line
The Melbourne property market is not just recovering – it is accelerating. With 90 % of suburbs up, a median dwelling value at $805 k, and a balanced rise across prestige and affordable segments, there is a window of opportunity that investors and first‑home buyers cannot afford to miss.
Ready to Ride the Wave?
Forge Real Estate Melbourne is your partner for navigating this dynamic market. Let our data‑driven insights and local expertise guide you to the best buys and the smartest investments.
Please contact us to find out more.
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