The Victorian property market continues to show resilience and steady growth, even in the face of shifting economic conditions. As we move through spring 2025, investors are seeing renewed confidence across both Melbourne and regional markets.
Melbourne’s rental market stays tight
Vacancy rates remain low across most of Greater Melbourne, with the city average hovering around 1.3%. Inner suburbs like Brunswick, South Yarra, and Richmond have seen rents rise 6–8% over the past 12 months, while outer areas such as Werribee and Cranbourne are still attracting strong tenant demand from families looking for value and space.
Regional Victoria holds its own
Regions like Geelong, Ballarat, and Bendigo continue to perform strongly, buoyed by population growth and improved infrastructure. Investors are drawn by solid rental yields—often higher than those in metropolitan areas—and lower entry prices.
Interest rates and buyer sentiment
The RBA’s steady approach this year has helped to stabilise borrowing costs. While affordability pressures remain, many investors are returning to the market, particularly where rental returns offset higher mortgage repayments.
What this means for you
If you own an investment property in Victoria, now is a great time to review rent levels, ensure your property is well-presented, and keep an eye on upcoming infrastructure projects in your area. The fundamentals remain strong, making property investment a solid long-term play.