Victoria is seeing rising optimism as property prices increase for a second consecutive quarter.
New REIV data shows that in the three months to June 30, house prices across Melbourne edged up 0.4 percent, while unit prices rose 1.3 percent compared to the previous quarter. Regional Victoria outperformed again, with houses up 2.6 percent and units climbing 3.1 percent, reflecting strong demand for lifestyle locations and relative affordability.
In a surprise move, the Reserve Bank left interest rates unchanged at 3.85 percent in July, despite widespread expectations of another cut. The RBA cited global uncertainty and slightly higher-than-expected inflation, leaving many borrowers waiting for mortgage relief this winter.
This decision came as new data showed the economy growing faster than anticipated, driven by a rebound in population growth and resilient consumer spending, despite the cost-of-living pressures many households continue to face.
Auction volumes and clearance rates remain steady, with median days on market sitting at 46 days across Victoria. Rental markets remain tight, with low vacancy rates continuing to place upward pressure on rents.
Buyer enquiry remains consistent, with many using this stable period to plan ahead for spring. We’re seeing strong activity in the sub-$1.5 million market, with first-home buyers and upgraders remaining active where affordability aligns with borrowing capacity.
These results reflect continued confidence and steady market activity as we move into the second half of 2025.
If you’d like to know what these market trends mean for your property plans, get in touch with your local Noel Jones team today.
