The Perfect Time To Upsize - Melbourne 2025
In This Week’s How's The Market | Edition 107
The Perfect Time To Upsize - Melbourne 2025
Toorak's Most Exclusive Enclave
The Melbourne suburbs where rents soared most over the past year
The Perfect Time To Upsize - Melbourne 2025
There are two core things we are seeing right now across the Melbourne housing market.
Affordable markets sub $800k on 400m2+ have the most interest. Particularly driven from interstate investors.
Markets between $1.2m - $2m are struggling, especially if the property is not fully renovated.
This means first home buyers have it rough as they are battling it out amongst the hottest of competition, though, second home buyers or upsizers are now in one of the strongest positions.
This is because they can now sell their property, quite often being their first home in a hot market and then use those funds to buy in a struggling market.
This will allow you to get the best of both worlds and oftentimes buy for 1.5x what you sell for, whilst getting 2x or more of the home.
In the Yarra LGA two Saturdays ago, auction clearance rates for properties above $1.5m were only 30%.
Compare this to the first home buyer & investor markets around Frankston, Carrum Downs, Craigieburn that have 5+ offers after the first open home with prices achieving $30k - $80k more than comparable sales from just December.
If you are currently living in one of these outer ring suburbs and have thought about moving closer to the city and spending a bit more - this may be the best time you could do so.
What The Agents Are Saying
Underquoting is stronger than ever.
Over the last few weeks we have seen some agents in particular putting up some extremely low quotes on properties.
This is really frustrating for some agents that operate in the same markets.
There was one property last Saturday that was quoted $1.2m - $1.3m and sold at auction with 6 bidders for $1.6m.
This property was a fully renovated Victorian terrace with a modern extension at the rear in a great quiet street.
It was never going to sell for less than $1.45m - $1.5m and that should have been where it was quoted according to three different agents from different agencies that brought it up with me on the day it opened.
It was the first thing the agents said to me when I saw them on Saturday - ‘could you believe that quote?!’
When one agent underquotes a property that badly, it can really stuff up the campaigns of other properties on the market at the same time as it makes correctly quoted properties look like bad value and the underquoted property look like an awesome opportunity.
It seems to be becoming more common at the moment as the market is changing so I’d put a word of warning out for buyers to beware.
The Wow Factor!
8 Montrose Court, Toorak, Vic 3142
Architecturally designed and set in an exclusive cul-de-sac among Melbourne’s finest homes
Exceptionally exclusive. Remarkably refined.
And on a huge block for the area of 1,590m²
Price Guide: $28,000,000 - $30,000,000
In The Media
The Melbourne suburbs where rents soared most over the past year
There has been some huge rental increases across Melbourne as laid out in the above article, though interestingly, there has also been rental decreases.
“House rents are less than last year in Parkville, Princes Hill, Sandringham, Kew East, Caulfield and Hawthorn East, but all still cost between $730 and $890 a week.”
Final Thoughts
2025 may be the perfect time for upsizers looking to make the most of a hot affordable market and a softer market for properties under $2m.
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.
