Melbourne House Prices Are The Fastest Rising Across The Country In 2025
In This Week’s How's The Market | Edition 106
Melbourne House Prices Are The Fastest Rising Across The Country In 2025
Markets Are Separating Across Melbourne
1890s Double Storey Victorian Terrace On Waterfront Of Middle Park
Melbourne House Prices Are The Fastest Rising Across The Country In 2025
Property has been a rollercoaster across Melbourne since November.
Across November and December, I saw a huge shift in the market becoming more of a buyers market.
It seemed like more and more properties were coming online and agents hadn’t adjusted to the changing times quickly enough as we saw the majority of properties still running as auction campaigns across November and December.
This then resulted in a huge collection of properties passing in which forced vendors to have to drop their prices rapidly.
One key mistake that I saw happen consistently late last year was vendors buying before they had sold and then they were forced to drop prices drastically after their homes passed in at auction.
Then, as 2025 kicked into gear in February, we saw a HUGE shift in the market and the level of activity on the ground.
Particularly in the sub $1m sector.
Interstate investors had returned and there seemed to be a surge of optimism in the market with auctions achieving huge results, properties selling faster than they had in years and investors buying properties sight unseen.
In February, according to PropTrack, Melbourne achieved the highest capital growth of any capital city in Australia growing by 0.67%.
In March, this number has dropped down to 0.2% and we can definitely feel that slow down on the ground.
It appears the interest rate cut gave a sugar hit and momentum grew rapidly, but now Melbourne has settled down to a more realistic pace of growth.
Properties that are priced well and present well are achieving goof results, however, if there is even one compromised feature in a home, it may have no interest and pass in.
We expect to see a consistent, slow and steady rate of growth over the next few months as it seems buyer activity is still significantly higher than it was late last year.
At least it is for our business.
Top End Inner Melbourne Auction Results - 22nd Mar
Top End Inner Melbourne Auction Results
Our auction results will now be emailed separately.
To find the auction results for all properties valued over $1.5m each week across Boroondara, Stonnington, Yarra & Port Phillip, subscribe via the link below.
https://www.tomii.com.au/auction-results
What The Agents Are Saying
Markets appear to be separating at the moment.
As you will see in this weeks auctions results when you subscribe above, there are very different trajectories of different markets.
Last Saturday, the Yarra LGA had a 30% clearance rate for properties at $1.5m+, whereas Stonnington had an 83.3% clearance rate.
Most of these properties are readvertised online with single sale prices which will hurt further the auctions scheduled for this weekend across Yarra.
Out LGAs like Casey are still seeing strong results with days on market around 7 for good properties and under 30 for the majority of suburbs.
Many agents have also reported finding it harder to predict which properties are going to perform well and which will struggle.
The Wow Factor!
182 Beaconsfield Parade, Middle Park, Vic 3206
1890s double storey Victorian terrace on the waterfront of Middle Park.
Extremely rare, incredibly prestigious.
And on a huge block for the area of 651m2.
Price Guide: $9,000,000 - $9,500,000
In The Media
Melbourne home prices surge more than any capital city so far in 2025 | PropTrack
It appears the turn around of Melbourne has begun.
As more media articles start to come out like this one, more people will want to get in before the huge boom.
Creating a self fulfilling prophecy.
Final Thoughts
The market has dampened slightly since February, however, it is still strong and we expect it to stay that way for the foreseeable future.
If you or someone you know would like assistance to buy this year, book in a call and we can discuss if we can help.
Thanks for reading this far!
We value feedback and if you have any suggestions on what you would like covered in the future please email me at tristan@tomii.com.au
Happy Buying!
Note: This is general advice and does not take into consideration your objectives, situations or needs. Please consider if this advice is suitable for you and your circumstances and speak to a professional before making any financial decisions.
