Melbourne Home Prices Show Signs of Renewed Strength in 2025

After years of subdued growth, Melbourne’s property market is showing encouraging signs of recovery. According to PropTrack’s April 2025 data, the city’s median home price rose by 0.25% last month—its most consistent monthly performance so far this year.

This uplift marks the fourth consecutive month of price increases, indicating that Melbourne may finally be shaking off its recent market lag.

Key Insights for Melbourne Sellers

April Growth: Melbourne recorded a 0.25% increase in home prices in April, outperforming Sydney, Perth, and Hobart on a monthly basis.
Year-on-Year Comparison: Despite recent improvements, Melbourne remains the only capital city where prices are still lower compared to April 2024—down 1.7%. However, the turnaround in early 2025 suggests this trend may soon reverse.
Affordability Edge: Melbourne’s relative affordability compared to Sydney and Brisbane is drawing attention from investors and first-home buyers alike. This has led to a steady rise in buyer interest, especially in established suburbs offering strong transport links and amenity access.
Investor Activity on the Rise: Lower prices combined with improved rental yields are prompting a surge in investor confidence, particularly with further interest rate cuts expected later this year.

What’s Fueling the Recovery?

Several key factors are supporting Melbourne’s market revival:

Interest Rate Relief: February’s rate cut and market speculation of additional reductions are increasing buyer confidence and affordability.
Government Incentives: With both major parties announcing first home buyer policies ahead of the federal election, many potential buyers are watching closely—creating a sense of optimism.
Market Momentum: While Melbourne underperformed in 2024, early 2025 data shows consistent gains across multiple suburbs, particularly in middle-ring areas with strong lifestyle appeal.

Thinking of Selling in 2025?

Now may be the right time to act. With prices trending upward and Melbourne regaining momentum, sellers have a window of opportunity to capitalise before market conditions shift again.

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