By Ashish, Founder of Auswide Buyers Agency
The Market Is Stirring in Melbourne
Hi everyone — it’s Ashish here. Today I want to pull back the curtain on Melbourne’s property market — what’s changed, what’s still holding it back, and where the real opportunities are right now.
Melbourne has had a slower ride compared with some other major cities, but the signs of movement are definitely there. For example, recent data shows that home values in Melbourne rose by 0.3% in June 2025, lifting annual growth to around 1%. Another report puts the median house price at about $983,000 in July 2025 after a ~$24,000 increase over the year.
What this tells me is: Melbourne is waking up again. It’s not leading the charge yet, but it’s positioning itself. As I always tell clients: in today’s market it’s smart to buy where the momentum is emerging, not just where it’s already peaked.
Why Melbourne Matters Right Now
Here’s what I’m watching in Melbourne, and why I think it’s more relevant than many assume:
- Affordability relative to peers — While Melbourne remains behind some other capitals in price growth, its median value still gives buyers more breathing room compared with cities like Sydney. That position means more potential upside as demand returns.
- Suburb-by-suburb turnaround — Analysts point out that many Melbourne suburbs are now “on the move”. For example, districts like Sunbury, Craigieburn, Werribee and Hoppers Crossing have been labelled as “supercharged” for growth.
- Supply constraints & population catch-up — Melbourne’s been held back by factors like slow migration and higher taxes in recent years, which depressed buying activity. But those constraints are shifting: population growth is recovering, new listings remain moderate, and supply is still being absorbed.
Key Drivers Shaping the Market
Here are the big drivers I believe will define Melbourne’s property performance over the next 12-18 months:
- Interest rate sentiment As borrowing costs ease (or at least stop rising), buyer confidence improves. Melbourne stands to benefit if this occurs.
- Migration and lifestyle-driven demand With more people moving in from interstate and overseas, especially seeking lifestyle and work flexibility, Melbourne’s lifestyle appeal is an asset.
- Suburban infrastructure and growth corridors Growth isn’t just about the CBD — outer suburbs with good transport access, schools and amenity are gaining traction.
- Past under-performance creating upside Because Melbourne has lagged rather than surged in recent years, there’s a base effect in play. Some markets here may outperform simply by catching up.
- Investor re-entry and yield dynamics As rental markets tighten and vacancy rates fall in Melbourne, investors will increasingly look back to the city. That creates competition and demand.
What This Means for Buyers & Investors
If you’re considering buying in Melbourne, here are some practical take-aways from where I sit at Auswide Buyers Agency:
- Clarify your goal: Are you buying to live, to invest, to build a portfolio? Your strategy will influence suburb choice, property type, structure.
- Look beyond the headline numbers: For example, a 1 % annual growth figure might seem modest — but if it’s concentrated in specific suburbs or property types, that’s where the opportunity lies.
- Act where growth is emerging, not where it peaked: I’m cautious of suburbs showing strong past growth but weak future fundamentals. Melbourne’s outer growth corridors look more promising now than some saturated inner-city pockets.
- Don’t wait for “perfect timing”: Given Melbourne’s position, waiting too long may mean missing the momentum phase. Being early often beats being perfect.
- Use local knowledge: Melbourne requires a nuanced approach. The city isn’t homogenous. Some suburbs are primed to rise fast; others are lagging or stagnant. Data + local insight matters.
My Outlook for Melbourne into 2026
If current momentum continues, I believe we’ll see modest but meaningful growth in Melbourne heading into 2026 — driven by suburbs that have been undervalued, improved migration, and buyer re-engagement.
Keep in mind: This won’t be a rapid surge like some past booms. It will be more measured, selective and strategic. That’s good news if you’re taking a long-term view.
Final Thoughts
At Auswide Buyers Agency, our mission remains the same: help you buy not just a property, but the right property — one that fits your goals, is bought with clarity, and sits in the right location at the right time.
If you’re looking at Melbourne and wondering where you should be, let’s have a conversation. We’ll map out your objectives, review suburbs, dive into data — and find the opportunity that’s right for you.
Because in property, strategy beats timing.