Market Update 2025 – Summer Guide

January 31, 2025

As we step into summer, Melbourne’s property market continues to evolve, bringing both challenges and opportunities for property owners.

In this edition, we share key market insights and the latest rental trends to help you stay informed.

Whether you are reviewing your investment strategy or exploring new opportunities in 2025, we are here to assist.

2024 in Review: Shifts, Challenges, and Opportunities

2024 presented both challenges and opportunities in Melbourne’s property market.

House prices have declined slightly, but the demand from first-home buyers is rising, with their share of home loans in Victoria reaching 26.2%, above the decade average of 18.6% (Domain 2024). Investors are pulling back, with over 24,000 rental properties leaving the market due to tax hikes and tighter regulations (REA 2024).

With fewer investors and rental properties on the market, we are seeing strong rental demand.

The market is shifting towards owner-occupiers and new investors eyeing long-term potential, making 2025 a pivotal year for property owners.

Rental Report StatisticS Q3 2024

The September quarter 2024 Rental Report indicates that over the previous quarter the median rent has increased by $20 in metropolitan Melbourne to $570 per week, and remained stable in regional Victoria to $450 per week.

Rental Report Take-aways

In metropolitan Melbourne, the number of new lettings has decreased by 4.4% since the September quarter 2023.

The quarterly turnover rate for metropolitan Melbourne was 9.1%, 1% higher than the rate in the September quarter 2023 (8.1%).

In Metropolitan Melbourne, the proportion of affordable new lettings decreased to 5.1% in the September quarter 2024, declining 1.5 percentage points over the quarter, but remaining stable over the year.

(Source: dffh.vic.gov.au)

Categories: Buy, Sell, Lease

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