🏡 Melbourne House Prices Forecast 2025: What's Next for Property Buyers?

If you’re looking to buy a home or invest in property in Melbourne, understanding where house prices are headed in 2025 is crucial. With rising interest rates, changing migration patterns, and low housing supply, Melbourne’s property market is shifting — and buyers need to stay ahead.

In this blog, we break down the latest Melbourne house price forecasts, key trends, and what it means for first home buyers and investors.

📈 Melbourne House Price Forecast for 2025

Experts are predicting moderate growth in Melbourne property prices through late 2024 into 2025. Here’s what the latest data and analysis show:

• CoreLogic data suggests Melbourne home values rose by 2–4% over the past 12 months, with steady recovery since late 2023.

• ANZ forecasts Melbourne house prices could rise by 5–7% in 2025, supported by lower interest rates and population growth.

• SQM Research expects price growth to be strongest in outer suburbs and first home buyer areas, due to affordability pressure.

📉 What Factors Are Driving the Melbourne Property Market?

1. Interest Rate Cuts Expected
   Economists expect the RBA to cut interest rates in early-to-mid 2025, improving borrowing power for buyers.

2. Rental Crisis and Low Vacancy Rates
   Investors are re-entering the market as rental demand increases, especially in high-growth corridors like Werribee, Tarneit, and Cranbourne.

3. Strong Migration to Victoria
   Net overseas migration into Melbourne is driving housing demand — especially for family-sized homes in affordable suburbs.

4. Construction Shortages
   A lack of new housing supply is keeping pressure on prices. This is especially true in new land estates and outer metro growth areas.

🏘️ Top Suburbs to Watch in 2025

Here are a few Melbourne suburbs property experts believe will outperform in 2025:

• Cranbourne East – Affordable, family-friendly, and growing fast

• Tarneit – High population growth and new infrastructure

• Frankston – Coastal lifestyle with strong rental yields

• Sunshine North – Gentrification and good transport links

• Epping – New developments and high demand for rentals

🧠 Should You Buy Now or Wait?

Timing the market is always tricky. If interest rates drop as expected in 2025, competition could rise — pushing up prices. Getting pre-approved early and speaking with a mortgage broker can help you lock in the right opportunity before prices accelerate.

✅ Final Thoughts: Is Melbourne Property Still a Good Investment?

Yes — but smart buying is key. Melbourne’s market is stabilising and poised for moderate growth, especially in well-located, affordable suburbs. Whether you're a first home buyer or an investor, the next 6–12 months could be a great time to enter the market — if you’re prepared.

📞 Need Help Getting Loan-Ready?

As a local mortgage broker, I help Melbourne buyers understand their borrowing power and find the right loan — especially with lender policies constantly changing.

Book a free chat today and get a personalised property finance plan.