Melbourne home loan surge: Ringwood leads a six-fold rise in pre-approvals as buyers flood back into the city’s east amid cheaper rates, new government deposit schemes and steady price growth.
Home-loan pre-approvals have skyrocketed six-fold in parts of Melbourne as buyers rush to lock in a home before Christmas.
New Loan Market Group figures show Ringwood posted the biggest rise in Victoria between July and September compared with the same period last year, with a 500 per cent surge in the number of people preparing themselves to purchase.
Box Hill buyers are also ready to go after a 267 per cent jump in their numbers, while would-be purchasers in the Moonee Ponds area have more than tripled.
RELATED: Bust to boom: Melb’s shock revival
Revealed: Block 2026 top secret plans
Husk founder seeks $6m property deal
A 200 per cent increase in buyer pre-approvals also emerged in Hawthorn and Southbank.
The figures signal a resurgence of borrowing activity across Melbourne’s middle and inner rings.
Brokers say the surge marks a turning point after nearly three years of subdued conditions.
The combination of the federal government’s First Home Guarantee’s 5 per cent deposit scheme having eligibility criteria vastly reduced and the number of places uncapped, as well as talk of interest-rate relief, has drawn thousands of sidelined buyers back to the market.
Loan Market Ferntree Gully broker Preeti Sachdeva says first-home buyers are finally breaking into Melbourne’s blue-chip suburbs thanks to the 5 per cent deposit scheme and higher property caps.
Loan Market Ferntree Gully broker Preeti Sachdeva said the policy changes had given first-home buyers their first genuine opportunity to enter well-established areas.
“The scheme has been a real game changer,” Ms Sachdeva said.
“People who were stuck renting can suddenly buy in areas they’ve long aimed for. Buyers are confident again and they’re moving quickly before prices rise.”
Ms Sachdeva said the $950,000 price cap was particularly significant for eastern suburbs, where median prices typically sit between $900 000 and $1.1m.
“It has made a noticeable difference,” she said.
“A lot of those quality homes that were just out of reach last year are now within budget.”
The Loan Market Broker said proximity, infrastructure and schooling were all driving factors behind the east’s dominance.
Ringwood Station, the key interchange for the Belgrave and Lilydale lines, has become the heart of Melbourne’s eastern property boom as buyers chase transport, lifestyle and amenity. Picture: Norm Oorloff
Ringwood’s connection to the Eastern Freeway and Belgrave-Lilydale line, Box Hill’s education precinct and Hawthorn’s cafe and university culture were key magnets for both owner-occupiers and investors.
“People want to stay close to the communities they grew up in,” Ms Sachdeva said.
“Even younger generations are trying to buy near family support networks. That’s why these areas never really cool for long.”
Loan Market chief executive David McQueen said cheaper finance and new incentives had “completely changed the rhythm of the market”, lifting confidence and competition across Melbourne.
“There’s a definite shift in sentiment,” Mr McQueen said.
“More people are attending opens, more homes are selling under the hammer, and buyers are securing pre-approvals early to stay ahead.”
Economists say that renewed competition has collided with constrained listings, a pattern emerging across multiple Melbourne markets.
PropTrack economist Angus Moore says Melbourne’s housing market has stabilised, with listings tightening and steady growth returning after years of uncertainty.
PropTrack senior economist Angus Moore said Melbourne’s listings remained relatively tight this spring, though not critically low.
“Total listings across Melbourne, so that’s new and existing combined, were down about 10 per cent compared to a year earlier,” Mr Moore said.
“Last spring was unusually strong, with lots of choice for buyers.
“So while we’re seeing a little less choice this year, it’s not a dramatic shortage, there’s still reasonable availability around the city right now.”
Mr Moore said market conditions were firmer than in recent years, with prices rising steadily and clearance rates solid through spring.
“It’s not entirely a story of scarcity. Buyer competition is heating up again,” he said.
Box Hill’s mix of top schools, transport links and a thriving retail hub has fuelled a 267 per cent jump in loan pre-approvals, putting it among Melbourne’s busiest property markets. Picture: NCA NewsWire / David Crosling
On whether Loan Market’s 500 per cent surge in pre-approvals could foreshadow a boom, Mr Moore said growth rates that large often reflected a small base.
“Generally what we’re seeing in Melbourne this year is steady, consistent price growth, not spectacular, but solid,” he said.
“That’s actually a really positive shift compared to the past few years since the Reserve Bank started hiking rates in 2022.
“The market’s clearly stabilised and found its footing again.”
Ringwood recorded Victoria’s biggest pre-approval surge — up 500 per cent — as buyers target family homes close to freeways, rail links and established amenities. Picture: Norm Oorloff
The senior PropTrack economist said affordability remained the main constraint on any new boom.
“For prices to really accelerate you’d need either interest rates to fall further or wages to rise much faster than they are,” Mr Moore said.
“We might get one or two more cuts depending on how inflation tracks, and that will definitely help, but it’s not going to bring us back to those ultra-cheap conditions we saw in 2021.”
Mr Moore said despite these high loan pre-approvals Melbourne’s long-term challenge was boosting supply.
Easy access to the Eastern Freeway continues to drive buyer demand through Melbourne’s outer east, connecting suburbs like Ringwood, Blackburn and Box Hill to the CBD.
Picture: NewsWire / David Geraghty
“Affordability challenges show we’re not building enough,” he said.
“Victoria does better than most states relative to its size, but clearly we still need to build more homes to keep pace with demand.”
Buyers’ agent and Simple Capital Advisory director Alan Fernandez, said the lift in pre-approvals was already translating into fiercer competition at auctions.
“There are more active bidders, and homes that might have sat for weeks last year are selling within days,” Mr Fernandez said.
“That tells you buyer intent is real, not speculative.”
Mr Fernandez said Melbourne’s eastern corridor had become one of the country’s most competitive property belts.
“Since the new threshold kicked in, demand has gone to another level,” he said.
Simple Capital Advisory director Alan Fernandez says Melbourne’s eastern corridor has become one of the country’s most competitive markets, with pre-approvals now translating into faster sales and fiercer auctions.
“Ringwood, Box Hill and Wheelers Hill are tightly held.
“You can’t just build another home out there, so with listings still low, competition is fierce.”
The Simple Capital Advisory director said Melbourne’s long stretch of flat prices had left the city looking undervalued compared with other capitals.
“Ringwood or Box Hill look cheap next to their Sydney equivalents,” Mr Fernandez said.
“Interstate investors are noticing and moving in because the gap is too good to ignore.”
He warned that waiting for more stock could prove costly.
“If you find a property that stacks up, buy it now,” he said.
“Six months from now you could be paying another fifty or sixty grand for the same home.”
PropTrack’s October Market Trends report backs the shift.
House prices in Ringwood have climbed six per cent in the past year to a median $1.06m, while Box Hill houses are up 0.5 per cent to $1.56m.
In Hawthorn, unit prices have jumped 10 per cent in three months as professional buyers and downsizers return to the inner east.
Top 10 Pre-Approval Suburbs Victoria
| Suburb | Pre-approval growth | Median price (Oct 2025) | 12-mth price change |
| Ringwood | 500% | $1.06m (house) / $646k (unit) | 6% / 3.2% |
| Box Hill | 267% | $1.56m (house) / $540k (unit) | +0.5% / −1.1% |
| Moonee Ponds | 205% | $1.47m (house) / $635k (unit) | −6.6% / −0.7% |
| Hawthorn | 200% | $2.88m (house) / $804k (unit) | −5.7% / +10.2% |
| Southbank | 200% | — / $555k (unit) | — / −9.0% |
| Essendon | 200% | $1.66m (house) / $682k (unit) | −4.9% / +4.1% |
| St Kilda | 200% | $1.59m (house) / $600k (unit) | 3.7% / 2.8% |
| Narre Warren | 200% | $770k (house) / $560k (unit) | 5.1% / 2.3% |
| Grovedale | 100% | $675k (house) / $530k (unit) | 2.3% / 1.4% |
| Wheelers Hill | 100% | $1.45m (house) / $925k (unit) | −2.1% / −1.5% |
Source: LoanMarket and PropTrack
Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.
MORE: Couple uses DIY skills to flip homes
Why first home buyers rushed to buy Melb land
Hammer frenzy: Melb homes go wild
david.bonaddio@news.com.au
English (US) · 