Melbourne Property Market Update - July 2025

Melbourne’s property market is moving. Growth so far this year is modest, but buyer confidence is returning, and opportunities are emerging for buyers who know where to look. 

At LongView, we cut through the noise to give you clear, data-driven insights into what’s really happening in the market and what it means for your next move. 

Here’s how Melbourne performed in July and what to watch as we head into spring. 

Melbourne at a glance: growing? or flatlining?  

In July, Melbourne dwelling values rose 0.4%, according to the Cotality Home Value Index. That brings quarterly growth to 1.2% (annualised at 4.8%), still well below the city’s long-term average. 

Melbourne remains -3.4% below its March 2022 peak, offering more relative affordability than other capitals such as Brisbane, Adelaide, and Perth, which have already pushed into record territory. 

This isn’t a boom, but it is forward movement. Listed supply remains low, interest rates are trending down, and buyer activity is picking up. 

Melbourne’s auction performance 

Over the past 12 months, Melbourne’s clearance rate has fluctuated but shows a gradual recovery in recent months as more buyers return to the market.

Source: Cotality and Poptrack

Melbourne’s auction market moved from a soft finish in late‑2024 to a clear rebound by winter 2025. CoreLogic’s weekly reads had Melbourne hovering in the high‑50% range through November - December 2024, before momentum returned and monthly results pushed into the low‑to‑mid‑70s by mid‑year (with the REIV recording ~79.5% statewide in June). Preliminary reads in July generally held near ~70%, underscoring a materially firmer market than late last year. 

The turning point came after the RBA’s February rate cut, which lifted buyer sentiment and coincided with a return to price growth and stronger clearance rates. A March “Super Saturday” wave of very high auction volumes briefly pulled success rates lower (preliminary results later revised to the low‑60s), but the market re‑gathered through April and has been strong since. 

Rental market: growth is easing, but yields remain solid 

Melbourne’s rental market has slowed compared to its rapid growth in previous years. In August: 

• House rents increased by 0.9% over the quarter (annualised at +3.6%) 

• Unit rents grew by just 0.4% (annualised at +1.6%) 

• Gross rental yields in Melbourne are currently 3.7%, consistent across both houses and units 

Over the past 3 years, Melbourne rents have increased by 26%, a period of strong growth that has since moderated more in line with long-term growth trends of rents. 

Key takeaways 

• Property Prices are edging higher – modest but consistent gains point to a stabilising market. 

• Affordability window remains – Melbourne is still below peak prices, unlike several other capitals. 

• Rental growth has slowed –  quarterly growth is now in line with long-term averages and as a result rental yields are stable. 

In a market that’s steadying but still competitive, timing and execution matter. At LongView, we use market-leading data and deep Melbourne expertise to:  

• Identify and secure high-quality properties  

• Guide homeowners on the best time and method to sell  

• Manage properties for optimal returns and minimal stress  

• Structure investment strategies that build long-term wealth  

Whether you’re entering the market, repositioning your portfolio, or planning your next step, we can help you make the right move with confidence. 

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