As we move into the second quarter of the year, the Melbourne property market appears to be in a holding pattern. The federal election has now been announced, interest rates remain on hold, and recent budget measures, including expanded support for first-home buyers and initiatives to fast-track housing construction are starting to shape market sentiment.
Despite a sense of caution from some buyers and sellers, confidence is gradually building. Melbourne recorded a 0.7% rise in home values over the March quarter, the highest of any capital city. Open for inspections have seen a noticeable uplift in numbers, particularly from first-home buyers, and well-presented homes are continuing to attract strong interest.
On a broader level, global economic factors are beginning to influence the Australian market. REA Group Senior Economist Eleanor Creagh said there is a chance the US tariffs, including those from Australia could impact new home building costs, noting, “It’s fairly unclear what the end outcome will be at this stage” she did highlight that the tariffs could have implications for interest rates in Australia and said “if there is a hit to global growth, we could see that bring forward the pace of the Reserve Bank’s interest cuts, which could stimulate homebuying demand.”
Meanwhile, Melbourne’s rental market remains tight. While rents have flattened slightly in some suburbs, demand for quality rental properties continues to outpace supply.
With the federal election approaching, recent rental reforms rolling out across Victoria, and international factors starting to take shape, the months ahead could see renewed movement in the market. If you’re wondering what this means for your next move, our expert team is here to help you navigate the changing landscape.
Reach out to your local Noel Jones office or visit noeljones.com.au to discuss your next step.
