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Melbourne Real Estate Insights: What’s Driving the Market in Late 2025

Oct 09, 2025

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Stay informed with the latest trends and insights shaping Melbourne’s property market — helping you make confident and well-informed real estate decisions.


Sales & Prices

  • Dwelling values: Melbourne dwelling values rose 0.4% in July (quarterly +1.2%, yearly +0.5%).
  • House prices: Median house value is ~$952,000, up +1.5% quarterly and +1.0% annually.
  • Unit prices: Median unit value sits at ~$621,000, up +0.5% quarterly but still –0.8% annually.
  • Forecasts: Analysts tip Melbourne house prices to rise up to $55,000 (~6%) over the next year, though some forecasts remain more conservative (0–2%).

Listings & Supply

  • New listings are down: Melbourne new listings fell 14% in June 2025 compared to May, and are down 4–7% year-on-year.
  • Total listings: Declined 5.8% over the past 12 months.
  • Impact: With fewer homes available, competition is stronger for quality properties. This is positive for sellers, as limited stock supports prices.

Auctions & Market Activity

  • Auction clearance rates: Strong at around 75%, showing healthy buyer demand.
  • Million-dollar surprises: Several suburbs have delivered unexpected seven-figure results this quarter.
  • Buyer trends: Investors are returning, making it harder for first-home buyers to compete.

Hotspots & Suburb Insights

  • Growth suburbs: Keilor East, St Kilda East, Glen Waverley, Altona North.
  • Western corridor demand: Werribee, Hoppers Crossing, Sunbury, and Melton are attracting strong buyer interest thanks to infrastructure and affordability.
  • Inner-city caution: Some inner suburbs may soften further if interest rates remain elevated.

Infrastructure & Development

  • Metro Tunnel: On track to reshape CBD and inner-suburban travel.
  • West Gate Tunnel: Due to open late 2025, improving connectivity in Melbourne’s west.
  • Queen Victoria Market Revamp: A major redevelopment delivering 2,000+ new homes in the CBD.

What This Means for You

  • Sellers: Low stock means less competition — now is a great time to consider listing.
  • Buyers: Be prepared for competition at auctions. Look to growth corridors for value.
  • Investors: Despite regulatory pressures, demand for rentals remains very strong, supporting yields.

If you’d like a personalised update for your suburb, or want to discuss your property goals, feel free to get in touch with us. We'd be happy to provide advice tailored to your situation.

Information sourced from various publications as at September 2025