The 2025 property market has kicked off with strong momentum in Melbourne. Open homes are busier, auction volumes are building and buyer sentiment is shifting. If you’re thinking about buying, selling or investing this year, understanding these early signals can help you make better decisions.
Buyer numbers are up (but it’s a mixed picture)
Across inner Melbourne, buyer turnout has lifted noticeably. At some inspections, we’ve seen more than 50 groups through – not people, groups. At others, only a handful have turned up.
This reflects a market where confidence is returning, particularly in the $600,000 to $900,000 price range. First home buyers are re-entering, encouraged by the possibility of interest rate cuts and a belief that now is a good time to secure a property.
The same is true for many first family home buyers in the $1.5 million to $2.5 million bracket. These buyers are more optimistic about their ability to sell their existing homes and are starting to plan ahead, confident that interest rates may have peaked.
Vendor sentiment is shifting
Sellers are becoming more confident too. While this hasn’t yet translated into widespread price increases or unrealistic reserves, the tone of the market is changing. The first big auction weekends of the year – 22 and 23 February – will be important indicators.
In contrast, regional Victoria remains slow. Many towns are seeing higher volumes of listings and fewer active buyers. For those considering a coastal or country weekender, this imbalance is creating opportunities. Some areas are feeling the effects of mortgage stress, and this is starting to show up in the form of price reductions.
Auction result: 1 Clevedon Court, Kew
One early sale that stood out was the auction of 1 Clevedon Court, Kew, on 1 February.
- Quoted price range: $1.75m to $1.85m
- Number of groups through the campaign: 100+
- Bidders on the day: 5
- Final sale price: $2.225m
While the location is desirable – close to MLC and Carey – the home was in poor condition and situated on a narrow laneway rather than a conventional street. We expected some buyer interest, but the final result exceeded expectations by a wide margin. It suggests that certain buyers are still willing to pay a premium for homes with future potential.
Quoting ranges are becoming less reliable
We’re already seeing a wide variation in advertised price guides. Some quotes appear conservative, possibly to generate interest, while others are being revised mid-campaign.
In several campaigns we’ve been monitoring, guides have been increased after strong inspection numbers or early offers. In others, the price remains unchanged, despite obvious buyer demand: a strategy that may be drawing scrutiny soon. It’s likely only a matter of time before media reports of underquoting resurface.
In a few cases, price ranges have been revised downwards, which usually signals a lack of buyer interest or overambitious initial expectations.
If you’re house hunting in 2025, it’s essential to take a critical look at the quoting range. Look at comparable sales. Pay attention to how many people are attending opens. And if 60 groups are walking through a $2m property, chances are the final result will land well above the guide.
Agent behaviour is becoming more polarised
One thing we’ve observed is a split in agent behaviour. Some are proactive: calling every interested buyer and buyer’s agent to follow up. Others are passive, or simply not returning calls.
In our experience, this often happens when agents assume the property will sell easily at auction and don’t see value in chasing buyers. While that might reflect confidence, it’s not always in the vendor’s best interest — especially if qualified buyers are being overlooked.
The next few weeks will be crucial
The end of February and start of March will be busy. Many serious buyers will make their moves before the market slows again in April and May.
Why the slowdown? Easter falls late this year and runs into ANZAC Day, which typically reduces listing volumes. There’s also a Federal election on the horizon. As a result, there may be fewer opportunities to buy until Spring.
Adding to this is growing anticipation of a rate cut. The Reserve Bank of Australia’s next decision could shift sentiment further, and many buyers are trying to get ahead of that curve.
Four things you should do now if you’re buying in 2025
1. Be prepared
Get your pre-approval in place. Understand both your ideal borrowing amount and your maximum capacity, so you can move quickly when the right property comes up.
2. Do the research
There’s no substitute for attending inspections and auctions. It helps you spot over- and under-quoted properties, identify which areas are running hot, and avoid paying too much.
3. Build your team
Have your key people ready: mortgage broker, conveyancer, building and pest inspector, and buyer’s advocate. Being ready saves time when you find a home you love.
4. Think flexibly
Not every suburb is moving at the same pace. Some pockets are seeing intense competition, others are quieter. Renovated homes are attracting stronger interest than unrenovated ones. Try to see the potential in each property, not just its current condition.
Ready to take the next step?
Take the next step with AXTON’s property advocates Joe Stinear and Kate Vines. Whether you’re new to the market or already pre-approved, our expert team is ready to guide you. For tailored advice, insights, or representation, contact us today at [email protected] or call 03 9939 7576. Let us help you buy with clarity and confidence.
