Victoria's Top 5 Property Markets 2025

Victoria's Top 5 Property Markets to Watch in 2025

The top five Victorian locations forecasted for growth in 2025 are Northcote, Essendon West, West Melbourne, Box Hill, and the regional town of Carisbrook.

1. Bentleigh East: The Premier Middle-Ring Family Hub

Median House Price: $1.515 million

Bentleigh East's growth is driven by its position as an established, yet relatively accessible, alternative to blue-chip neighbours like Bentleigh and McKinnon. The suburb appeals strongly to owner-occupier families, with 77% of households being family units. Its key feature is the highly sought-after secondary school catchment, which consistently underpins demand and price stability. Houses in this bracket recorded a moderate but resilient 1.4% price growth over the last 12 months, signalling a stable market poised to accelerate as buyer confidence returns to the middle-ring family sector in 2025.

2. Spotswood: The Inner-West Gentrification Hotspot

Median House Price: $1.24 million

Spotswood is an emerging inner-west suburb experiencing rapid gentrification, making it a strong pick for capital growth. Its appeal is rooted in its proximity, sitting just 7km from the Melbourne CBD, yet offering an entry price point significantly below Yarraville and Williamstown. The suburb has already demonstrated explosive market strength, recording a phenomenal 10.7% price growth for houses over the past 12 months. This is supported by low inventory and high demand from buyers moving from the city and pricier inner suburbs seeking value and an easy commute via the Spotswood train station.

3. Lilydale: The Lifestyle-Affordability Hybrid

Median House Price: $874,500

Lilydale, located at the gateway to the picturesque Yarra Valley, is a prime example of a market benefiting from the continued shift towards lifestyle-driven property choices. Its median house price makes it an affordable option for families and first-home buyers priced out of inner and middle-ring suburbs, especially when compared to Melbourne's median house price of over $1 million. The suburb has shown solid performance, achieving a 5.4% compound growth rate for houses over the last 12 months (Source: Property.com.au), driven by strong demand. Its connectivity via the Lilydale train line and access to lifestyle amenities like Lillydale Lake and numerous schools solidify its appeal as a well-balanced family hub.

4. Golden Square: The Regional Value-Add Opportunity

Median House Price: Below $550,000

As a key suburb of the major regional centre of Bendigo, Golden Square is tipped as one of the top affordable regional investments for 2025. Its primary driver is affordability coupled with strong cash flow potential. With many properties priced under $550,000, it offers a low barrier to entry for investors. Crucially, the area boasts a high estimated rental yield of around 5.5%, which is highly attractive to buy-and-hold investors in the current market. Its proximity to the Bendigo CBD and La Trobe University campus underpins consistent rental demand.

5. Traralgon: The Consistent Regional Performer

Median House Price: $510,000

Traralgon, the commercial heart of the Latrobe Valley, makes the list for its long-term stability and underlying economic strength. Unlike volatile markets, Traralgon has shown a reliable, solid capital growth record, averaging 9% a year over recent years. Its economy is diversified and robust, supported by significant local employment in government services, banking, insurance, and the expanding Latrobe Regional Hospital. This strong employment base and a median price of only $510,000 attract investors seeking a high-yield, lower-risk regional market with a proven track record of growth.

Forge Real Estate Melbourne can help you blueprint your future by finding the perfect property where your family's dreams and investment goals can truly take shape.

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This information is general in nature and is not financial advice. Property forecasts are speculative and subject to market changes.