The Melbourne market has rebounded in first quarter of 2025, recording the biggest jump in house prices nationally and laying the foundation for a solid autumn season.
Melbourne Momentum
There’s renewed confidence in the air. Melbourne real estate has turned the corner, reversing a 10-month decline in prices.
New data from PropTrack reveals house prices rose 0.7% in the first three months of the year – the most impressive of all the capitals.
After a small January dip, momentum grew in the lead-up to the first interest rate cut in more than four years. February prices shot up by 0.67%, backed by a smaller rise in March.
“Buyers who held off purchasing are re-entering the Melbourne market. Auction clearance rates have strengthened, reflecting renewed competition.” - REA Senior Economist, Eleanor Creagh.
Opportunity Knocks
It’s no secret that Melbourne has not performed as strongly as other capitals over the past few years.
But with property values still more than 6% below their March 2022 peak, experts say this creates a wealth of opportunity for buyers this autumn as the market plays ‘catch-up’.
Already momentum is building in prestige properties across the city, coast and country.
City - 8 Robertson Street, Toorak
Sold for $19m
Mark Wridgway from RT Edgar, Stonnington, has witnessed a notable shift in the prestige market, caused by a boost in sentiment following the rate cut. “These are subtle nuances that show confidence is in the air. Days on the market are going down and prices are going up.”
He points to his March sale of the Robertson Street house as a sign of growing optimism. “It was bought by a local family looking for a large private block with room for a circular driveway. They plan to build a new home which will be worth upwards of $35m on completion.”
For more information, contact Mark Wridgway on 0419 510 777.
Coast - 3786 Point Nepean Road, Portsea
Sold for an Undisclosed Price
The recent sale of this architectural masterpiece is evidence that the prestige coastal market is also on the rebound. David Gillham, from RT Edgar Portsea and Sorrento, said the rare clifftop estate was hotly contested, with a Melbourne family who already have a second home in the area, the successful bidder.
“Portsea has done very well this quarter, and the outlook is very good for next spring and summer. We thought the controversial new land tax would dampen demand, especially in the $10m plus market, but there has been no pushback at all.”
For more information, contact David Gillham on 0411 518 672.
Country - 38 Glen Echo Court, Mount Macedon
Sold for $2.45m
Beverly Higgs, from RT Edgar Macedon Ranges believes the sale of this stunning 15-acre lifestyle property shows confidence, and Melbourne tree changers, are returning to the countryside.
“For the past few years most of our buyers have been locals, or Sydneysiders priced out of the Southern Highlands. But this property was sold to a delightful Melbourne couple who have long dreamt of a country lifestyle. Although priced on the higher end of the market, compared to interstate it's still great value for money.”
For more information, contact Beverly Higgs on 0448 271 222.
With the Melbourne prestige market rebounding in the first quarter of 2025, it’s the perfect opportunity to contact one of RT Edgar’s expert agents about buying or selling this autumn.
