Property Alert: New Policies, Lower Rates, Rising Demand
With the election over and interest rates expected to fall, the market is really picking up momentum!
On-the-Ground Momentum is Undeniable
The market isn’t just growing on paper — it’s starting to climb in the field.
Leigh McConnon
Apr 7, 2025
We’ve witnessed a sharp increase in open home attendance, with many properties drawing crowds. Auctions are heating up too, with multiple competitive bidders becoming the norm rather than the exception. We’ve even seen properties sell for 10%, 20%, and even 30% above reserve — clear evidence of rising buyer confidence and renewed urgency in the market.
Auction clearance rates are climbing and have surpassed 80% in many Melbourne suburbs — especially in the inner and middle rings, where demand is surging across both houses and townhouses.
The Numbers Back It Up
According to PropTrack, Melbourne led the nation in February with a 0.67% rise in home values — the strongest monthly result among capital cities. While values still sit about 2.5% below where they were a year ago, the rebound is gaining traction.
KPMG forecasts apartment prices to grow 4.6% in 2025 and 5.5% in 2026, with house prices expected to follow closely behind — driven by strong population growth, tight rental supply, and a return of buyer demand.
Economic Context
The Reserve Bank of Australia’s key economic indicators (as of February 2025) further support this shift:
- Cash Rate Target: 4.10%
- Economic Growth: 0.8%
- Inflation: 2.4%
- Unemployment: 4.0%
- Wage Growth: 3.5%
With the recent turmoil of the Trump Tariffs there is now talk of 4 interest rates deceases before the end of the year creating a window of opportunity before this gives the market a significant boost.
Investors Still Have an Edge
Despite the growth, smart investors can still find value. Many vendors continue to sell to avoid ongoing property tax changes, meaning motivated sales are still available. Meanwhile, the rental market remains tight, with vacancy rates low and yields holding strong — making well-located investment properties highly attractive.
Why Timing Matters
With the uncertainty of the upcoming Federal election, the global turmoil and interest rates likely to shift downwards in the coming months, now is the sweet spot. This is the phase where savvy buyers make their move — before the media headlines catch up and the broader market accelerates further.
Need help finding the right property and negotiating the best deal? Let’s talk.
Have a great month ahead!
