The median house price rallied in metropolitan and regional Victoria over the March 2025 quarter, with 2.7 and 1.2 per cent increases, respectively. This rebound follows respective declines of 2.0 and 1.3 per cent over the December 2024 quarter.
Combined with modest growth in median unit and apartment prices of 0.9 and 2.1 per cent across metropolitan and regional Victoria respectively, this marks the first quarter since December 2021 quarter that positive results have been simultaneously recorded over these four core market segments.
Port Melbourne (18.6 per cent) and Melton South (8.3 per cent) recorded the highest quarterly and annual median house price increases respectively.
Two Melbourne suburbs exceeded the 20 per cent quarterly growth mark for units and apartments – Mordialloc (26.9 per cent) and Preston (20.8 per cent) – while units and apartments in Yarrawonga grew by 18.8 per cent.
Brighton recorded the highest quarterly median prices for both houses ($3,325,000), and units and apartments ($1,355,000).
Positive quarterly price results across metropolitan and regional Victorian houses, and units and apartments for the first time since December 2021, reflect a stabilising Victorian property market, offering diverse opportunities for enabled buyers.
Quarterly data for the period ending 31 March 2025 released today by the Real Estate Institute of Victoria (REIV) shows that this owed in part to the median house prices in metropolitan and regional Victoria rebounding with 2.7 and 1.2 per cent increases respectively.
These results were driven by the likes of top performer, Port Melbourne, which achieved an 18.6 per cent increase in its quarterly median house price, and strong regional demand, reflected in the town of Stawell’s median house price, growing by 7.9 per cent.
Complementing this market uptick was an increased buyer interest in units and apartments to gain a foothold in the property market. Headlined by two Melbourne suburbs exceeding the 20 per cent growth mark for quarterly median unit and apartment prices – Mordialloc (26.9 per cent) and Preston (20.8 per cent) – demand for units in regions was just as strong with the town of Yarrawonga recording 18.8 per cent quarterly growth.
Importantly, significant affordable opportunities remain for buyers within this diversified property market landscape. The new data reveals that three top-20 growth suburbs within the City of Whittlesea are all below the metropolitan Melbourne’s median house price. There are more affordable options for units and apartments in inner-city suburbs from Travancore ($347,500), West Footscray ($435,000), West Melbourne ($430,000), Carlton ($440,000) and the CBD itself ($447,000).
REIV CEO, Kelly Ryan said the results demonstrate that more buyer-friendly conditions are continuing to encourage investment across the state’s diverse property market.
“We are seeing the ongoing, positive impact of improved buyer sentiment on Victoria’s property market transaction activity. Buoyed by February’s Reserve Bank rate cut and the anticipation of a lower interest rate environment moving forward, buyers are also feeling encouraged by what appears to be a strong commitment on the part of both state and federal government to address residential supply and access issues,” Ms Ryan said.
“The results also speak to the diversity of Victoria’s property market and a willingness on the part of buyers, who are still facing ongoing cost-of-living challenges, to seek out attractive opportunities across the board. This renewed confidence seems to be common among a range of buyers, in that the positive results we are seeing are not confined to either the higher or lower ends of the market.
“This is reflected in the growth we are seeing in areas such as outer Melbourne and regional Victoria, together with the ongoing interest in units and apartments state-wide. And the fact that this has been complemented by the performance of established blue-chip suburbs like Brighton, which recorded the highest quarterly median prices for both houses ($3,325,000), and units and apartments ($1,355,000).”
Ms Ryan added that this increase in buyer confidence was good news for prospective sellers too.
“Like many other of the state’s commercial sectors, Victoria’s residential property market has confronted a unique set of challenges over recent years. While there’s obviously still some way to go, these results point to a positive rebound. And, given the state-wide importance of the sector, that’s good news for many Victorians.”
Media Contact: media@reiv.com.au - 03 9205 6607