Value Seekers Fuel Melbourne's Property Price Resurgence
Value Seekers Fuel Melbourne's Property Price Resurgence
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
Melbourne's property market is experiencing a notable rebound in house prices, driven primarily by value-conscious buyers looking for more affordable options.
According to CoreLogic's latest house price report, Melbourne has emerged as the most affordable major capital city in Australia, with a median home price of $772,561 as of February 28, 2025.
This relative affordability follows a modest 8.2% increase in property values over the past five years, a stark contrast to the nationwide rise of 38.9%. Consequently, Melbourne’s house prices are more accessible when compared to other major capitals, marking the cheapest relative valuation since 2006, as per data mostly sourced from Domain's quarterly house price statistics.
Melbourne’s housing market attractiveness has intensified interest from interstate buyers, particularly those from Sydney seeking economical housing opportunities. Domain reports a significant migration of Sydneysiders relocating to Melbourne, drawn by the cost advantage. Currently, the median house price in Melbourne stands at $1,039,460 compared to Sydney's $1,645,444, with unit prices also notably lower at $577,405 versus $812,863 in Sydney.
Jacob Caine, President of the Real Estate Institute of Victoria, notes a growing trend of Sydney residents moving south, not just for economic reasons but also for Melbourne’s appealing amenities and lifestyle.
Emily Wallace, a buyers’ agent and founder of Wallace Advocates, emphasizes that Melbourne's affordability allows for purchasing quality properties within a convenient distance from the city center. She anticipates this trend will continue as more buyers recognize the potential for purchasing well-valued homes.
Reflecting this positive sentiment, CoreLogic's daily dwelling values index indicates that Melbourne has seen a strong resurgence in property prices. Over the past 28 days, dwelling values have increased by 0.6%, marking the highest growth rate since September 2023.
As affordability continues to draw attention, Melbourne's property market is increasingly becoming a magnet for value hunters eager to capitalise on its appealing economic and lifestyle propositions.
Published:Tuesday, 25th Mar 2025 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
The Australian Securities and Investments Commission (ASIC) has recently conducted a comprehensive review of the private lending sector, revealing significant inconsistencies and potential risks. This scrutiny comes in response to the sector's rapid expansion, with private credit extending approximately $200 billion in loans, primarily to high-risk real estate developers and property investors. - read more
Recent data from the Australian Prudential Regulation Authority (APRA) indicates a significant surge in investor lending, with new investment loans totaling $72 billion in the September quarter of 2025. This marks a 12% increase from the previous quarter, highlighting a robust appetite among investors for property acquisitions. - read more
The latest Consumer Market Pulse report from Equifax for Q4 2025 reveals a notable increase in consumer credit demand across Australia. Mortgage enquiries have risen by 12.3% compared to the same period in the previous year, marking the most significant growth in mortgage demand observed since 2021. Additionally, personal loan demand has increased by 8.9% year-on-year. - read more
In today's financial climate, many Australians find themselves exploring options to manage and optimise their financial commitments. One option gaining popularity is loan refinancing. But what exactly is loan refinancing, and how can it benefit you, especially without negatively impacting your credit score? - read more
Before diving into the world of loans, it's essential to understand why budgeting is crucial. Budgeting provides a clear picture of your financial status, helping to ensure you can meet future loan repayments without undue stress. - read more
Applying for a loan can be a daunting process, filled with numerous requirements and potential pitfalls. However, avoiding mistakes is crucial to boost your chances of approval and secure the best possible terms. Making errors during your application can lead to unnecessary delays, higher interest rates, or even denial. - read more
Need Help Finding a Loan?
Find out now if you qualify and compare
rates, offers and options from multiple lenders - without a credit check!
All finance quotes are provided free (via our secure server) and without obligation. We respect
your
privacy.
Knowledgebase
Balance Sheet: A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.
