20 January 2025<\/p>\n\n\n\n
Quarterly median price data from the Real Estate Institute of Victoria (REIV) shows a continuation of modest price changes for the period ending 31 December 2024, creating a window of opportunity for discerning buyers.<\/p>\n\n\n\n
Demonstrating demand across markets, units and apartments in outer Melbourne and regional Victoria held strongest against statewide trends, with 1.5 per cent and 1.0 per cent growth over the year to December 2024. An affordable way to enter the property market, units and apartments present an excellent opportunity for buyers to get a foot on the property ladder.<\/p>\n\n\n\n
Quarterly median prices in outer Melbourne were resilient at $758,500 for houses and $597,500 for units. With relatively more affordable prices than the overall Metropolitan Melbourne median house price of $894,500 and median unit and apartment price of $622,500, Outer Melbourne recorded some of the highest transaction levels over the year.<\/p>\n\n\n\n
Units and apartments are becoming a popular choice across the Victorian housing market. The strongest quarterly growth for units and apartments was across Melbourne\u2019s inner and middle rings, with Sandringham increasing by 31.1 per cent to $830,000 and Brighton rising 28.4 per cent to $1,375,000. Both in Melbourne\u2019s Bayside, they share the top five with Carlton (27.9 per cent to $550,000), Blackburn (25.7 per cent to $753,000), and Armadale (23.2 per cent to $715,000). Regional centres such as Bendigo also recorded strong annual growth in their median unit price with 21.4 per cent in Golden Square, 18.5 per cent in North Bendigo, and 9.7 per cent in Kangaroo Flat.<\/p>\n\n\n\n
A prominent theme is a steady and stable Victorian real estate market against a backdrop of high interest rates and a general high cost-of-living environment. There are signs that the market has adjusted to the high interest rates and is stabilising while offering excellent variety and access for those looking to buy.<\/p>\n\n\n\n
REIV CEO Kelly Ryan said that the possibility of an interest rate cut and a gradual lifting of inflationary pressures have set the stage for a reinvigorated buyer\u2019s market in 2025. <\/p>\n\n\n\n
\u201cThe Victorian real estate market has experienced a unique series of challenges over the last few years, with increased taxation, rental market regulations, interest rates, and stubborn inflation placing mounting pressure on both homebuyers and investors. However, given the fundamentals that Melbourne and regional Victoria have retained, buyers are now well-positioned to join Victoria\u2019s property market,\u201d Ms Ryan said.<\/p>\n\n\n\n
\u201cMelbourne\u2019s historic place as the second-most expensive capital has shifted, and it is now the fourth-most affordable. Melbourne will likely catch up to its counterparts as the nationwide housing market moderates and becomes more aligned. For those looking to buy a place, whether as a home or an investment, the Victorian market hasn’t been this attractive in some time.\u201d<\/p>\n\n\n\n
The Mornington Peninsula had impressive gains over the quarter, with six suburbs recording a double digit increase in median house price. Blairgowrie led the way, with its median house price increasing by 26.1 per cent over the quarter to $1,500,000.<\/p>\n\n\n\n
Ms Ryan emphasised the importance of diversity and choice across the market, noting improvements in the higher and lower ends of the market, suggesting an increase in confidence for all buyers.<\/p>\n\n\n\n
\u201cWhile the western suburbs continue to dominate in terms of sheer sales, occupying half of the top ten highest sellers, entries from Melbourne\u2019s north, east, and south indicate an enthusiasm to buy across the city. It clearly demonstrates that the market is bouncing back and raring to go for 2025,\u201d she said.<\/p>\n\n\n\n
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