As we close out 2025, Melbourne’s property market finishes the year on steady ground, with activity holding firm through December despite a more measured spring season.
According to REA Group senior economist Eleanor Creagh, the Reserve Bank’s decision to hold the cash rate at 3.6 per cent for a third consecutive month has provided households with some much-needed stability heading into the festive period. The RBA continues to take a cautious approach, weighing the balance between inflation pressures and the need to support broader economic confidence.
While affordability remains a challenge, this rate stability has helped maintain healthy buyer interest across Melbourne’s east — particularly in the unit and townhouse market, which continues to outperform detached homes thanks to its relative value and accessibility.
Looking ahead to 2026, forecasts from major banks and economists vary, with many suggesting that the cash rate may remain on hold for much of the year given current inflation dynamics and broader economic conditions. Some forecasts also indicate the possibility of rate adjustments later in the year if inflation trends continue to ease; however, there is no consensus at this stage, and ongoing economic data will influence future decisions. Noel Jones will continue to monitor developments closely and keep clients informed as the market outlook evolves in the new year.
Auction activity and listing levels have tracked in line with expectations through December, as vendors look to take advantage of continued population growth, resilient employment conditions, and sustained demand for quality homes.
If you’re planning a move in 2026, now is a great time to connect with your local Noel Jones office to start the conversation and get ahead of the market. Visit noeljones.com.au to find your nearest team.
From all of us at Noel Jones, we wish you and your families a Merry Christmas and a safe, relaxing holiday season. We look forward to helping you achieve your property goals in the new year.
