If you’re thinking about buying property in Melbourne in 2025, you’re probably wondering whether now is the right time to take the plunge. With mixed reports about market trends, interest rates, and price movement, it’s easy to feel uncertain.
The truth is, Melbourne’s market isn’t moving in just one direction. Some areas are still recovering, while others are seeing strong demand and price growth.
For investors seeking capital growth, the focus should be on areas where supply and demand are already under pressure. Suburbs with increasing buyer activity, higher attendance at open inspections, and shorter days on market are indicators of strong competition and potential price growth.
For those looking to secure a bargain, different metrics come into play. Properties that have been sitting on the market longer, have limited buyer interest, or where vendors are under pressure to sell can provide stronger negotiation opportunities. Identifying these conditions is key to securing value in the current market.
So, is this the right time to buy? The answer depends on what you’re looking for and where you’re searching.
Melbourne’s Property Market in 2025: A Mixed Picture
According to Domain, we are expecting 3-5% growth in houses in Melbourne in 2025.
Cameron Kusher, REA Group’s director of economic research, also said that “property market conditions have been far from uniform across the capitals and regions, thanks to diverse supply and demand dynamics.”
We’re seeing this play out in real time. Some properties are sitting on the market for months, while others are selling above expectations with multiple bidders.
The Market is Still Active, But Selective
At Parker Buyer Advocates, we’ve attended auctions over the past few months that have exceeded expected sale prices. Properties that are well-located and meet buyer’s expectations are still facing strong competition in the market. Here’s why:
- High-demand properties are selling quickly. These include well-presented homes in desirable areas with good layouts and modern finishes.
- Lower-demand properties are sitting on the market. Overpriced homes or those needing significant work are struggling to sell.
- Some suburbs are performing better than others due to limited supply and ongoing demand.
Where Are the Opportunities for Buyers?
Even with competition in some segments, buyers who are prepared and know where to look can still find great opportunities.
- Off-market deals: Some sellers need a fast sale due to personal circumstances. In these cases, buyers may have stronger negotiating power if there are fewer competing offers.
- Stronger negotiation power: Properties that have been sitting on the market for weeks often present good opportunities for negotiation.
- Purchasing a home that is needing a little TLC but otherwise is in good shape can also yield an advantage in todays market – especially for those who have easy access to trades and confidence in the renovation process
- Interest rate movements: If rates are cut later this year, demand is likely to increase. Buyers who purchase before this shift may face less competition.
A strategic approach is key. The right buyer’s advocate will ensure you buy well, whether off-market or on-market, by using the right timing and negotiation strategy.
Speed and Strategy Matter
Negotiation strategy is more important now than ever. In many cases, seller expectations are higher than actual market value. Understanding a property’s true worth and timing the offer correctly can make all the difference. Acting too soon or too late could mean overpaying or missing out.
Working with a buyer’s advocate helps you navigate this process with confidence. Real estate agents often contact active buyer’s agents before listing a property. This gives our clients an early advantage and access to more opportunities.
It’s not unusual for our clients to secure a property within a week or two of engaging our team. We prepare buyers in advance so they are ready to act as soon as the right opportunity appears.
Should You Buy in 2025?
If you’re waiting for a dramatic drop in Melbourne’s property prices, you may be waiting longer than expected. While some areas might see a slight decline, others are still attracting strong interest. The best time to buy is about market conditions. But also it’s about finding the right property that suits your needs, budget, and long-term goals.
If you want guidance on where to find value in the market and how to act quickly when opportunities arise, book a call with Lisa today.
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