The REIA has released its Real Estate Market Facts Report for the September 2025 quarter, showing Victoria’s property market continues to record more modest growth than most other states, even as national price momentum remains positive and rental conditions remain restrictive across much of the country. Nationally, dwelling prices increased steadily over the quarter, with solid annual growth recorded for both houses and other dwellings.
Key takeaways for real estate professionals
Victoria price growth remains subdued compared to other states: In Melbourne, median house prices rose by 2.7 per cent over the quarter and 4.3 per cent annually to around $955,000, while median prices for other dwellings increased by 2.1 per cent over the quarter and 3.1 per cent over the year to approximately $646,000.
Rental conditions are comparatively softer in Melbourne: Median rents were broadly stable over the quarter, with Melbourne’s vacancy rate holding at 2.5 per cent, the highest among capital cities and well above the national average of 1.9 per cent.
Regional Victoria recorded moderate gains: House and unit prices increased across key regional markets, including Geelong, Bendigo and Ballarat, although growth remained modest compared to some interstate regional centres.
Other states continue to outperform: Brisbane led annual house price growth nationally, while Adelaide’s rental market remains the tightest in the country, with vacancy rates below 1 per cent. Sydney holds the crown as Australia’s most expensive capital city despite moderate growth.
Affordability supports renewed interest in Victoria: Melbourne’s relative affordability compared to Sydney and Perth, combined with continued demand for rental properties, will support renewed market confidence among both owner-occupiers and investors into 2026.
The September 2025 quarter results suggest Victoria is entering a period of market stabilisation, with early signs of a more balanced rental environment emerging. While price growth continues to trail national leaders, improving affordability, steady population growth and comparatively higher vacancy rates are supporting greater accessibility for renters and sustainable conditions for investors. Together, these factors position Victoria for a gradual, measured recovery through 2026 as market confidence continues to rebuild.