M:
Research
Spring/25 Melbourne Residential
The Big Picture Lower mortgage rates are expected to lift buyer sentiment and borrowing power in Melbourne, likely supporting renewed momentum in residential property prices and driving overall activity. The market saw a modest lift in sales activity in Q2 2025, supported by subdued price growth and investor interest. Homes sold slightly faster than the previous quarter, though listing volumes remained lower than this time last year.
Property prices rose modestly in Q2 2025, with the median value reaching $907,000. McGrath Research expects steady growth ahead, supported by improved affordability, and investor interest driven by the city’s relative value. The rental market remains undersupplied, with low vacancy and steady rents. Yields are healthy, and strong population growth is expected to keep upward pressure on rents through 2026.