Melbourne’s Property Market Finds Its Footing Again

By Josh Bartlett, Mynt Financial

If you’ve been following the headlines lately, you’ve probably noticed something we haven’t seen in a while: positive news about Melbourne’s property market!

After a few challenging years, data is starting to show early signs of recovery. The big question now is whether Melbourne is just stabilising… or setting up for a stronger run ahead.

Let’s take a closer look at what’s driving the change and what it means for homeowners, buyers and investors.

Why Melbourne’s Market Looks Promising

Affordability advantage
Melbourne’s home values have risen just 17.5% over the past five years, well below the national average of 46.8%. That’s kept the median house value sitting under $1 million (around $953,000), making it more affordable than Brisbane, Canberra and well below Sydney. This relative value is attracting renewed interest from buyers who were previously priced out of other capitals.

Demand returning
After a quieter period through 2023–24, buyers are gradually coming back. Auction clearance rates have lifted, and around 90% of Melbourne suburbs saw price growth in the last quarter, the strongest result in over two years. Outer and middle-ring suburbs are leading the charge, driven by lifestyle appeal and better value for money.

Tight rental conditions
Melbourne’s rental market remains competitive, with low vacancy rates and rising rents. That’s putting extra pressure on renters and pushing more people to consider purchasing, particularly with affordability and incentives improving for first-home buyers.

Investor slowdown creating opportunity
New taxes introduced in the 2023 Victorian Budget have dampened investor activity, easing competition in some areas. This has opened the door for more owner-occupiers and first-home buyers to secure properties that would have been fiercely contested a few years ago.

But, Before We Get Too Excited…

While the signs are positive, Melbourne’s recovery is still in its early stages. The past few years of slower growth mean there’s ground to make up, and factors like population shifts, cautious investors, and a strong construction pipeline continue to shape the market.

Growth over the next year or so is expected to be steady rather than spectacular  and that’s okay. A stable market gives homeowners, buyers, and investors the chance to make smarter, more strategic decisions without the pressure of a boom-and-bust cycle.

What It Means for You

If you’re sitting on a home loan, or considering your next property move, a stabilising market can actually work in your favour.

✅ Homeowners: Now’s a great time to review your rate and structure. Many clients are still sitting at higher rates than they need to be.
✅ Buyers: Melbourne’s relative affordability and growing confidence could make the next 6–12 months a window of opportunity.
✅ Investors: With less competition and rental demand still strong, there’s potential for solid long-term performance, provided you buy strategically.

My take

“If I had to sum it up, Melbourne’s not booming, but it’s building.
It’s steady, affordable, and quietly gaining momentum.
That’s exactly the kind of market where smart finance decisions make a real difference.”

If you haven’t reviewed your home loan lately, now’s the perfect time to make sure you’re on the sharpest rate and best structure for your situation.