--- title: What is fueling property optimism? description: Market momentum returns post-election with Melbourne home values rising and first-home buyers driving demand. Discover key trends and policy shifts shaping Victoria's property market. image: https://site.buyersadvocate.com.au/hubfs/Melbourne-Australia-1920x1080.jpg --- [![BuyersAdvocate_Logo-1](https://site.buyersadvocate.com.au/hs-fs/hubfs/Brand/BuyersAdvocate_Logo-1.jpg?width=200&height=80&name=BuyersAdvocate_Logo-1.jpg)](https://www.buyersadvocate.com.au/) - [ABOUT](https://www.buyersadvocate.com.au/about) ## [ABOUT Buyer’s Advocate specialises in buying property, and has been helping buyers meet their objectives for over 30 years. 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Market momentum returns post-election with Melbourne home values rising and first-home buyers driving demand. Discover key trends and policy shifts shaping Victoria's property market. [Leigh McConnon](https://site.buyersadvocate.com.au/blog/author/leigh-mcconnon) Jun 5, 2025 ---   Key Market Activity Highlights - Melbourne home values have now increased every month in 2025, with units leading the rebound—up 5.9% since February in some inner-city areas. - Despite gains, prices remain 5.4% below the March 2022 peak, indicating significant upside potential for long-term buyers. - Outer suburbs such as Tarneit, Melton South, and Clyde North are attracting interest from first-home buyers and investors due to affordability and infrastructure investment. Structural Shifts & Government Activity Planning reform and housing policy are at the forefront of Victoria’s property landscape: - The government has rebranded the Suburban Rail Loop as a housing-enabler, projecting 70,000 new homes along the corridor. - Fast-tracking of planning permits is underway, with a focus on making Victoria the “townhouse capital” of Australia. - Stamp duty concessions on off-the-plan purchases have been extended until October 2026, offering buyers savings of up to $28,000 on a $620K property. However, investor confidence has been dented by the COVID Debt Levy, which is effectively doubling annual land tax on some homes. Some properties worth $1M+ are facing extra tax burdens of $10,000+ annually. Rental Market & Investor Trends While rental growth nationally has slowed to 3.1% annually, rental values hit a record high in March. In Victoria: - Rent growth expectations have been revised slightly downward to 2.2% in the next 12 months. - Investor activity remains low, with local investors accounting for just 9.1% of sales—the lowest of all states. - Interestingly, first-home buyer activity in Victoria is the highest in the country (37.6%), signaling a new generation entering the market as conditions stabilise. The Road Ahead Expect continued signs of stabilisation and modest price growth through the second half of 2025. NAB forecasts a +2.3% increase in Melbourne prices this year, accelerating to +5.5% in 2026. With more rate cuts forecast and buyer sentiment improving, Victoria appears to be transitioning into the next growth phase—but selectively and with some caution. ### [Insights](https://site.buyersadvocate.com.au/blog/insights-0) Australian home values rise in March, driven by improved sentiment and lower interest rate expectations, with regional markets outpacing capitals.... Leigh McConnon Apr 7, 2025 ### [July Vendor Advocacy Update](https://site.buyersadvocate.com.au/blog/vendor-advocacy-service-draft) Explore how our vendor advocacy service enhances your home selling process with expert advice, professional management, and top-tier marketing for... Leigh McConnon Jul 7, 2025 ### [August Vendor Advocacy Update](https://site.buyersadvocate.com.au/blog/august-vendor-advocacy-update-clone) Learn how our vendor advocacy service enhances your home selling process with strategic advice, professional management, and effective marketing for... 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