Is it a good time to invest in Melbourne?
- Posted By Sam May
The spring housing season is delivering a clear signal for new-build investors: momentum is back in Melbourne,
and the window to act before broader price acceleration narrows is already opening.
Melbourne is expected to undergo a price correction over the coming years, fuelled by rapid population growth and the fact it missed out on the last growth cycle.
This has left median house prices sitting well below Brisbane, meaning now is the bottom of the market.
The government is also investing heavily in infrastructure, including new underground metro stations, adding further strength to the Melbourne growth story.
Creating a vibrant city lifestyle, while offering excellent transport connections to the beach, cafes, and nightlife.
Home prices have risen for four consecutive months in 2025 after broad declines in 2024. Momentum has been building since the February RBA rate cut, with:
- Improved borrowing capacity
- Rising household confidence
- Return of Investor Activity
- Persistent Under Supply
Prices remain below previous peaks, and expectations of rate cuts are drawing buyers back.
Annual population growth, major infrastructure investment, and a resilient economy continue to support long-term value.
🏘️ New-Build Investors Take Note: The Data Speaks
|
Metric |
Performance |
|
July Price Growth (MoM) |
+0.4% |
|
Quarterly Growth |
+1.2% |
|
2025 YTD (Houses / Units) |
+2.8% / +1.2% |
|
Standout Suburbs |
Strathmore +18%, Portsea +15% |
|
Listings (vs. avg) |
-20% below normal levels |
|
Auction Clearance Rates |
70% (12-month high) |
|
Relative Affordability |
Up to 41% cheaper than Sydney |
|
|
|
Strategic Takeaway for New-Build Investors
The spring surge is more than seasonal — it’s a signal of a market cycle turning in earnest. For investors in new builds, the timing is critical:
- Land banking and off-the-plan strategies stand to benefit from rising prices through 2026
- Construction commencement now means delivery into a potentially stronger sales or rental market in 12–18 months
- First-home buyer activity, government incentives, and institutional build-to-rent interest are all putting upward pressure on demand — especially in well-located, mid-density product