The Melbourne property market outlook for 2025. A second half comeback?
Predicting the property market trends can be hard, even for the experts. This post rounds out some of the key drivers of what to expect for the second half of the year in Melbourne.
Please note this is not advice, but observations on what the experts are saying. If you do decide to buy or refinance, we’re here to help.
Soft market over the past 12 months with most growth in outer suburbs
The chart on the right shows the change in property values in the past 12 months to April 25.
Core Logic research is showing that the outer suburbs more than 20km away have the highest growth.
While for inner city suburbs, 96% of suburbs have shown falls in property prices.
Positively Melbourne had the strongest growth so far in 2025 according to PropTrak.
A strong second half of 2025 comeback could be on the cards!
Interest rate falls expected in late 2025 should put heat back into the market
Experts are predicting reductions in interest rates (up to 0.5%), and this should continue the price growth seen since the start of 2025. The market can react quickly, so if you’re thinking of buying, start getting your finances and approvals ready so you can move fast.
Overall, the market predicted to grow 4.6%
KPMG is predicting a 4.6% increase over the year. Unit prices are expected to drive this with people being priced out of the market for detached housing.
Investment outlook is good with some watchouts
Melbourne remains a top long-term investment city, backed by strong population growth. A lot of growth has been driven by out-of-city investors. However, locals know that some of these outer cheaper suburbs don’t have the lifestyle features or local economic growth drivers to keep them in continuous demand for the coming decades.
Who needs to take action?
In every market there’s opportunities for the savvy property buyer to get ahead.
Inner city upgraders: If you’re looking to move home, look at your local market trends and property values as now could be a time to move before the market turns back up.
Investors: Long term outlook is good, but look at where you’re investing.
First home buyers: There’s new Labour policies to help you get onto the market sooner. With as low as 2% deposit.
We’re here to help:
Call Will on 0414 877 724 or will@ladderfs.com.au and he’s happy to have a chat about how you can move up the property ladder in Melbourne.
Sources: Proptrack, Corelogic, KPMG, Realestate.com.au, https://propertyupdate.com.au.