Melbourne Property Market: April Data Highlights a Shift in Activity

The April 2025 CoreLogic Housing Chart Pack shows several key developments in Melbourne’s property market. While broader figures reflect a stabilising trend, a closer look reveals areas of movement that may be of interest to both buyers and investors.

Melbourne’s dwelling values rose by 0.5% over the March quarter, with a 0.3% lift recorded in March alone. The strongest growth occurred in the lowest 25% of properties by value, which increased by 0.6% over the quarter, slightly ahead of the middle and upper market segments.

Growth at the more affordable end of the market often marks the early stages of a broader recovery. These properties are typically more accessible for first home buyers and investors seeking higher rental yields, and they tend to attract demand more quickly when lending conditions improve.

Investor lending in Victoria made up 30.3% of new finance commitments in the December 2024 quarter. This is below the national average and lower than the state’s 10-year trend.

With fewer investors currently active in the market, conditions may favour those looking to buy. Less competition can mean greater choice, more negotiating power, and potentially more favourable purchase terms — particularly in suburbs where stock levels are elevated.

Unit approvals in Melbourne are tracking 2.7% above the 10-year average, while detached house approvals remain 5.0% below average. This increase in higher-density approvals reflects the shifting mix in new housing being brought to market.

For investors, this points to a continued interest in medium and high-density housing, which is often located close to transport, employment hubs and lifestyle amenities. It also indicates that the market is preparing for continued demand for smaller, more affordable dwellings.

In Summary Melbourne’s market is showing signs of renewed movement, particularly at the entry level. The early strength in affordable segments, combined with subdued investor competition and a lift in unit approvals, provides useful insight into how conditions are evolving in 2025. At Property Club, we have a strong pipeline of well-researched Melbourne investment opportunities tailored to current market conditions. To learn more, contact enquiries@propertyclub.com.au or join us at one of our upcoming events: https://www.eventbrite.com.au/o/vic-events-property-club-17571887173

Source: CoreLogic Housing Chart Pack, April 2025