M:
Research
Spring/25 Melbourne Prestige Residential
The Big Picture The wealthy population grew 3.9% in the past year as the stock market outperformed. A stronger economy is forecast despite modest private business investment.
Annual sales are trending lower for Melbourne prestige homes, average selling times are taking longer, while both new listings to market and overall total residential listings are tracking below a year ago.
Interest rate target has been lowered to 3.60% with the Reserve Bank of Australia anticipating a further reduction in next six months.
Melbourne prestige property prices are likely to recover, with 3% price growth forecast for 2026.
Compared to a year ago, the construction of new residential homes in Victoria was up 5.9% and building approvals were 8.9% higher.
The luxury rental market remains undersupplied and this is reflected in residential vacancy. Over the coming year, Melbourne prestige rents are likely to remain elevated.