Melbourne Property Briefing – 2nd Issue May 2025
The noise of the election is behind us—and now, we can get back to what really matters: smart decisions, well-timed moves, and forward thinking in Melbourne’s evolving property landscape. This isn’t just another snapshot of market data—it’s a prompt to think differently, act decisively, and engage with the opportunity that’s quietly gathering momentum.
1. A Market Ready for Reconnection
With the political dust settled, confidence is finding its feet again. And now, with the RBA announcing a second 0.25% rate cut in May—bringing the cash rate to 3.85%—the signal is crystal clear. All four major banks have passed on the cuts, making lower borrowing costs a tangible reality for households and investors alike. We’re already seeing renewed buyer interest, reinvigorated conversations, and a market beginning to shift gears. It’s not just a shift in tone—it’s a shift in trajectory. A green light for borrowers. A strong tailwind for sentiment. And a clear indication that we’ve entered a new phase of the cycle—one where readiness will reward action.
2. Reframing Opportunity, Not Just Recovery
Too often, we talk about markets “recovering.” But Melbourne doesn’t need to recover—it needs to reawaken. And that’s exactly what’s happening. From under-supplied apartment markets to tightly held prestige enclaves, we’re seeing renewed appetite. It’s selective, it’s savvy—and it’s driven by a search for real value.
3. Commercial Real Estate: Quietly Rebuilding
Behind the scenes, commercial interest is returning. Hybrid work models are bedding down. Tenants are upgrading their spaces. Retail strips are adapting. High Street, Armadale is a good example—where curated retail experiences and boutique offerings are thriving alongside an increasingly premium residential mix. Glenferrie Road, Hawthorn is another standout, with exceptional food offerings and a strong sense of local character continuing to draw foot traffic and investment. And then there’s Swan Street, Richmond—bustling with energy and evolving with new commercial layers that mirror the inner-city lifestyle shift. It’s about finding what works, and these pockets are showing signs of getting the balance right. The sharp end of this market will be where the rewards sit: well-positioned, experience-led commercial holdings with long-term fundamentals.
4. For Sellers: This Window Won’t Stay Open Forever
With the end of the financial year fast approaching, now is a strategic time for vendors to act. Many buyers are looking to secure a property before 30 June to take advantage of financial and tax planning benefits. For sellers, this means heightened urgency and a window of real demand. Well-prepared properties are drawing strong interest, and those who move early are well-placed to achieve exceptional outcomes while the market is leaning forward.
Vendors who are waiting for perfect certainty risk missing this early shift in buyer behaviour. Well-presented homes are attracting meaningful competition—and price points that defy the broader narrative. There’s a moment here to lead the market, not follow it.
5. Strategic Buying in a Confident Cycle
For buyers, this is a reset. It’s not about panic or FOMO—it’s about positioning. If you’re in a strong financial position and have long-term intentions, you’ll find this market far more navigable than in recent years. Don’t wait for the crowd.
What to Watch:
- EOFY Momentum: Buyers are acting with urgency as the financial year draws to a close. Strategic sellers can take advantage of this heightened activity.
- Updated Appraisals: Whether you’re considering selling, leasing, or simply updating your records, now is a smart time to review your property’s value. With rising replacement costs, insurance shifts, and EOFY near, accurate appraisals ensure you’re protected and well-positioned.
- Return of the Private Sale: While pre-market and off-market campaigns have their place, there are no limits on outcomes from a well-run public campaign. Timing, strategy and visibility still matter.
Emerging Trends & Announcements
A Shift in Property Management Expectations
There’s a growing trend that landlords are quietly embracing—and it’s changing the game. Boutique agencies are outperforming their corporate counterparts when it comes to service, responsiveness, and results. Why? Because landlords are looking for more than just rent collection—they want insight, experience, and real accountability. With high-value assets, they expect high-performance support. And increasingly, they’re finding it in smaller, more focused teams who treat every property like it matters—because it does. This isn’t just a preference, it’s a pattern—and smart landlords are already making the switch.
State Budget 2025: What It Means for Property
The Victorian State Budget delivered more investment in infrastructure, health and education—all elements that contribute to long-term liveability and sustained property growth. For property owners, that’s encouraging. While no new broad-based property taxes were introduced, the state’s rising debt profile and pressure on revenue will keep tax settings tight.
A notable concern is the proposed Emergency Services Levy—informally referred to as the fire levy. Though aimed at funding essential services, it has sparked strong criticism, particularly from regional and farming communities. Many view it as an added burden on landowners, and its potential flow-on effects for insurance premiums and holding costs should not be overlooked.
According to the Australian Financial Review, concerns remain about the state’s growing debt, now forecast to reach $194 billion by 2028–29, prompting global credit agencies to monitor Victoria’s fiscal discipline closely. At the same time, increased spending across the suburbs may lift surrounding property values in the long term.
In this context, staying informed and making strategic property decisions—whether buying, selling, or holding—is more important than ever.
Big Shift in the Digital Property Landscape
The recent announcement of Domain.com.au’s acquisition by global property data giant CoStar signals a significant shake-up in Australia’s online property space. For consumers, this could be a win. Increased competition with REA Group may drive innovation, better user experiences, and more transparent pricing across both portals. With a global player now in the mix, buyers and sellers alike may see improved listing quality, deeper insights, and smarter tools. For those who rely on property portals as a key part of their search, the landscape is evolving in their favour.
Final Word
The Melbourne Property Briefing isn’t just a market update—it’s an invitation to rethink your position, explore emerging opportunities, and move with clarity. Melbourne’s property market isn’t waiting for perfect conditions—it’s already adjusting. The question is: will you move with it?
Beyond Traditional Service: What Sets Us Apart
Our traditional real estate services are just the beginning—we’ve built a broader, smarter offering for today’s property clients:
- Core Agency Expertise
End-to-end sales, leasing, and management—always focused on quality, consistency, and great results. - Private Office
Discreet, high-level handling of premium and off-market transactions, tailored for clients who value precision and privacy. - Advisory Division
Strategic guidance for clients transacting beyond Melbourne—across the coast, country, and select secondary markets. This arm also reflects our collaborative model, drawing on trusted professionals across regions to deliver sharp, joined-up advice. - Concierge Services
From pre-sale prep, styling and trusted trades to relocation support and property access—we go beyond the transaction to make each step easier, more efficient, and more rewarding.
We’re not here to follow industry norms—we’re here to elevate them. Whether it’s maximising sale price, securing the right tenant, or offering advice that protects your position, we measure our success by the results we help you achieve.
If you’re considering a move or exploring new directions in property, we’re ready to help you think bigger and act smarter.