Melbourne is gaining momentum for home price growth in June, with new PropTrack data confirming the city’s long-awaited property market recovery is finally taking hold. Photo: iStock
Melbourne’s housing market is gaining momentum, with new figures showing prices have risen for a second consecutive month and annual growth turned positive for the first time in more than two years.
PropTrack’s latest Home Price Index reveals home values climbed 0.3 per cent in June, taking Melbourne’s annual growth to 1 per cent.
The median home value now sits at $818,000, up $10,600 over the past year, despite remaining 1.1 per cent below the March 2022 peak.
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PropTrack senior economist Eleanor Creagh said it was a clear sign the city had turned the corner.
“Melbourne has been one of the weakest-performing capital city markets over the past five years, but we are now seeing momentum return,” Ms Creagh said.
“That’s largely due to improved buyer confidence off the back of expected rate cuts and Melbourne’s relative affordability, especially when compared to cities like Sydney and Brisbane.”
PropTrack senior economist Eleanor Creagh says momentum is building in Melbourne’s market, with confidence returning and values rising for a fourth straight month.
New data reveals how Melbourne’s property market is bouncing back, with values rising and buyer demand heating up across the city.
Melbourne’s $3000 month on month keeps the city’s median dwelling price – combining houses and units – below Adelaide, Brisbane, Perth and Sydney in June.
Ms Creagh said unit values, now just 3.6 per cent shy of their previous peak, are benefiting as buyers “move down the value chain”, she added.
O’Brien Frankston director Mark Burke said outer-metro property markets were heating up, driven by increased activity from first-home buyers and interstate investors.
“There’s definitely momentum building across the city,” Mr Burke said.
Buyers are back in force at Melbourne auctions, with intense competition and rising confidence driving up home values across the city.
“Interest rates are expected to drop further, and we all know what happens then, prices go up.
“Buyer’s agents are often bidding on behalf of Sydney clients now, at one auction we had 12 registered bidders, but a few big knockout bids quickly wiped out the competition.”
While regional Victoria posted a slower 0.1 per cent rise in June, Ms Creagh said standout markets were Bendigo, Ballarat and northwest Victoria where annual growth was up to 4.25 per cent.
This renovated Frankston North home sold for $852,000, showing Melbourne’s gaining momentum.
Geelong, the state’s largest regional city, saw unit prices rise 1.1 per cent over the past quarter to a median of $555,000 and house prices rise 0.71 per cent in to $761,000.
“It’s a value-driven shift that’s reshaping growth across the state,” Ms Creagh said.
Melbourne Property Advocates director Simon Murphy says buyers priced out of the city are turning to regional hubs like Bendigo for better value and growth potential.
Melbourne Property Advocates director Simon Murphy said affordability was also drawing interest to regional areas.
“Buyers who once looked in suburbs like Sunshine are now turning to Bendigo, where $650,000 can buy a home, allow for renovations, and deliver $200,000 in equity gains before you even move in,” Mr Murphy said.
Jellis Craig Bendigo director Matt Leonard said the regional city remained a hot spot, even with higher taxes in Victoria.
“We’re now dealing with buyers’ advocates from WA, QLD, SA and NSW, all chasing investment properties here,” Mr Leonard said.
PROPTRACK HOME PRICE INDEX JUNE 2025
| Region | Monthly Growth % | Annual Growth % | Annual Growth $ |
| Sydney | 0.5% | 3.3% | $47,500 |
| Melbourne | 0.3% | 1.0% | $10,600 |
| Brisbane | 0.3% | 8.3% | $74,800 |
| Adelaide | 0.6% | 9.8% | $71,500 |
| Perth | 0.3% | 7.8% | $64,700 |
| Hobart | 0.5% | 2.3% | $14,300 |
| Darwin | 0.2% | 5.8% | $31,900 |
| Canberra | 0.3% | 0.5% | $15,200 |
| Capital cities | 0.4% | 4.1% | $43,900 |
| Regional NSW | 0.3% | 4.3% | $33,100 |
| Regional Vic | 0.1% | 1.2% | $13,200 |
| Regional Qld | 0.5% | 9.2% | $70,700 |
| Regional SA | 0.4% | 12.9% | $56,400 |
| Regional WA | 0.4% | 10.9% | $51,400 |
| Regional Tas | 0.1% | 3.3% | $19,700 |
| Regional NT | 0.1% | 1.5% | $1,700 |
| Regional areas | 0.3% | 6.0% | $40,900 |
| Nationally | 0.4% | 4.6% | $40,900 |
Source: PropTrack
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