Signs of a Turnaround as Melbourne Rebounds 

After 12 months of negative price growth, Melbourne’s property market may finally be turning a corner.  

Melbourne dwelling values rose 0.2% in April and are 1% over the quarter (4% annualised) signalling a shift in momentum. Indeed, we called this in our last update (see full blog - Is Melbourne Property Market Now Cheap?) after seeing buyer activity increase, notably amongst investor buyers.  

While we’re still playing catch-up compared to other capitals that have massively out-performed Melbourne in recent years, the change in direction is encouraging. 

Why the renewed optimism?

A few factors seem to be driving this turnaround: 

• Improved buyer sentiment following the February rate cut is flowing through to on-the-ground activity. Buyers seem to be factoring in further rate cuts this year, which given the broader economic and geo-political environment appears warranted. As previously reported, we’re witnessing this sentiment first-hand with our advocacy business currently assisting several investor buyers, purchase quality properties this year  

• Stock levels remain low, giving sellers more pricing power. Our CEO Evan Thornley recently rote about this in a linkedin post referencing what we call the “short squeeze” 

• The sharp population rebound continues to build demand, notably for detached homes where migrants want to live  — particularly into Melbourne’s middle and outer suburbs. 

Performance elsewhere

• Every capital city rose this quarter except for Canberra  

• Sydney also recorded a 0.2% gain in April and 1% for the quarter. Following a -2.2% decline between September ‘24 and January ‘25, Sydney home values remain just -1% below their record high. 

• Brisbane continues to lead, with 0.4% growth in April and 1% for the quarter, but the rate of growth is usurpingly slowing after a stellar period of growth over the last few years, with Brisbane price up 70% over the past five years. 

Where to from here?

There’s still a way to go before Melbourne returns to sustained, above-average growth — but this month’s results are a positive step. Election campaigns and the resulting uncertainty usually has a negative impact on property prices, albeit so far this election appears to be having little impact, in that Melbourne recorded auction clearance rates remaining firm.    

If interest rates continue to soften and migration-driven demand stays strong, Melbourne’s relative affordability (compared to Sydney and Brisbane) may become its greatest strength. 

As always, property is a long game — and Melbourne might just be entering the next chapter of that story. 

LongView Investment Fund

The LongView Investment Fund, had a really strong quarter with a return of 4.51% for the quarter (18% annualised). This is a strong out-performance of the broader property market and validates the core benefits of the fund in both the unique product structure and superior property selection. You can read more about the funds performance here. 

 If you qualify as a wholesale investor you can find out more information about investing.

We thank you for your ongoing support and as always, if there’s any way we can support you in your property journey don’t hesitate to get in touch.