Why the Victorian market is trending for investors in 2025

1 month ago 10

The Victorian property market is rapidly emerging as a prime opportunity for investors seeking long-term capital growth, affordability, and high rental yields.

With robust population growth, major infrastructure developments, and turnkey solutions from trusted builders like Allam Property Group, Victoria is fast becoming a hotspot for smart property investors.

Developing suburbs are often an investor’s first port of call when looking to maximize returns. Several promising sites across Victoria, including Beveridge north of Melbourne’s CBD, are projected to thrive.

“We are seeing a significant increase in interest from investors looking for high-growth areas.

“The combination of affordability and projected infrastructure projects makes Beveridge a strategic investment location,” says Adam Wellington, Allam’s Sales Manager.

2025 Market Trends

Population Growth

Melbourne is forecasted to become one of Australia’s most populous cities. According to the Centre of Population’s 2024 Statement, it is expected to have a population of 6.4 million by 2035, growing at a rate of 1.5% annually.

Beveridge, home to Allam’s Alkyra estate, is anticipated to see a 16.2% population increase over the next decade, surpassing 45,000 residents by 2034.

This sustained demand is driving property values higher, making it an attractive investment location.

The Alkyra estate's Beveridge location has a booming population and property values.


Investment affordability: Lower entry costs

Investors are increasingly drawn to Victoria’s lower median property prices compared to New South Wales.

According to PropTrack’s January 2025 Home Price Index Report, Melbourne ranks as the third least expensive capital city, with only Darwin and Hobart offering cheaper homes.

The median price for a home in Melbourne is $779,000.

Mr. Wellington notes, “Our homes in Victoria are designed to reflect the needs of modern buyers.

“We offer high-quality builds at an accessible price point, ensuring investors receive exceptional value without compromising on style or functionality.”

Capital growth and infrastructure

Investors are eyeing key Victorian suburbs for their strong historical price performance and promising future developments.

Areas surrounding Allam’s Alkyra and St Ronans estates are poised for significant growth.

Suburbs like Beveridge and Sunbury are projected to be hotspots for investors.


Beveridge, for example, recorded a 0.9% increase in median house prices over the past 12 months and had 1,262 potential buyers interested in February alone.

Sunbury, adjacent to St Ronans, has already seen considerable growth, attracting many with its existing amenities.

Over the past year, Sunbury’s median house price grew by 0.8%, with 5,692 people seriously considering purchasing within the neighbourhood.

These suburbs are further bolstered by upcoming infrastructure projects such as the Beveridge Future Train Station and the Sunbury Line and Road Upgrades, which enhance connectivity and accessibility, indicating expected suburb growth.

The resilient Victorian market, even during economic downturns, offers long-term stability and the potential for consistent capital appreciation.

Turnkey solutions: Hassle-free investing

Allam Homes specialises in turnkey properties, providing move-in-ready solutions for both investors and homeowners.

With Alkyra’s first homes now complete, investors can secure properties without enduring long waits.

Allam’s 10/90 contract structure allows for just a 10% deposit upon signing, with no construction progress payments required, and the remaining balance is settled at completion.

Alkyra homes are turnkey and move-in ready, meaning there’s a quick turnaround for buyers.


Are you a financially savvy investor?

Understanding market cycles and leveraging strategic financial tools are crucial for smart investing.

Victoria’s rental market is thriving, with demand outpacing supply in many growth areas. Investors stand to benefit from high occupancy rates, strong rental yields, and future capital appreciation.

The combination of population-driven demand, government-backed infrastructure projects, and high-quality, affordable homes from Allam makes Victoria an appealing investment landscape.

Disclaimer: The information provided in this article is for general information purposes only. Before making any investment decisions, REA Group encourages readers to seek personalized professional investment advice.
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