The mood in the Melbourne property market has shifted, but not dramatically. Buyer sentiment remains optimistic, but many are still sitting back, waiting for someone else to move first. The phrase “cautiously optimistic” feels like an understatement right now.
Here’s what’s happening in the market, who’s active, and why April could set the tone for the months ahead.
Confidence is building, but action is still slow
Buyers are more engaged than they were a year ago. Many are ready to buy if the right home comes along and are willing to pay fair value. But they’re not rushing. The dominant mindset right now is: “I’ll act when others do.”
In short, buyers are at the party; they’re just not on the dancefloor.
High-end listings are rising, and they’re selling
Listings in the upper price brackets – above $5 million, and in some areas above $10 million – have increased year-on-year. Importantly, they’re not just sitting on the market. In many suburbs, these homes are selling rather than being quietly withdrawn after weeks of low interest. This activity suggests confidence at the top end of the market is improving.
Family buyers are building momentum
There’s been a clear increase in enquiry and inspection numbers from family home buyers.
Many agents are reporting stronger engagement across their open homes, and finance brokers are seeing a lift in pre-approval requests. However, while buyer interest is growing, this hasn’t yet led to price growth.
Factors like school holidays, a looming Federal election and global uncertainty may be holding the market back temporarily. Without additional stimulus, there’s a risk the buzz that’s been building since February could plateau rather than continue rising.
Interest rate cuts could be the next catalyst
Markets are currently pricing in a 100% chance of a rate cut in May, with at least two more expected later in the year.
Historically, multiple rate cuts in quick succession tend to spark strong buyer activity. Even in softer economic conditions, rate drops often drive interest back to property – particularly from buyers prioritising security, stability and longer-term value.
Demand for new home sites is rising
Momentum is continuing to build around new home sites, especially older properties in good locations that are ripe for knockdown and rebuild. Buyers in this segment are looking ahead. Some plan to rent the property out short-term, while others expect to move in before redeveloping.
Regardless of the path, the shared belief is that now is a smart time to buy land. For some, it’s a chance to secure a site at the bottom of the market. For others, it’s about getting ready to build once costs ease further or their borrowing power increases.
Pre-approvals and plans to renovate are increasing
As in recent months, first home buyers and first family home buyers remain active. But there’s now growing interest from borrowers considering renovations and investment purchases as well. This broader mix of activity signals a market in transition, with more momentum likely to come in the second half of the year.
If you’re planning to buy or renovate soon, don’t wait until the market heats up. Pre-approval takes time, and paperwork is far easier to tackle before you’re in a rush. Getting finance sorted now gives you the flexibility to move quickly when the right property comes up.
Selling? Vendor advocacy could make your life easier
If selling is on the cards in 2025 but you’re not sure where to start, vendor advocacy may be worth exploring. It’s a flexible service tailored to your needs, whether that’s a one-off value assessment or end-to-end support managing the sale.
Over the past month, vendor advocacy clients have ranged from downsizers to busy families, all looking for expert guidance or simply wanting to take the stress out of the process. If you’d like to learn more, get in touch at [email protected].
Valuation services ahead of 30 June
April also marks the start of a busy valuation season. Requests from accountants and auditors are picking up, particularly for SMSF and trust reporting. If you or your clients require compliant market valuations ahead of 30 June, we can assist.
We also provide critiques of expert valuation reports, especially in family law matters, and can offer questions to challenge opposing reports. If this is relevant to you or your clients, we’re happy to discuss the options.
The best time to buy a home was 10 years ago. The second-best time is when you’re ready.
If you’re ready now, or getting close, 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.
