Melbourne Market Trends: Buying & Selling Insights

Melbourne Market Trends: Buying & Selling Insights

Current Market Trends in Melbourne

What Buyers and Sellers Need to Know Right Now

The Melbourne property market has been on an interesting journey in 2025. After periods of fluctuation, the market is showing signs of recovery, with rising home values, changing buyer demand, and distinct regional differences across the city. Understanding these trends is critical for buyers, sellers, and investors who want to make informed decisions.

📈 Overall Market Snapshot

As of August 2025:

  • Dwelling values across Melbourne have increased by 2.8% since February, showing steady recovery.

  • Low inventory continues to put upward pressure on prices in many sought-after areas.

  • Interest rate cuts have increased borrowing capacity, with the average loan size climbing to $678,000.

These conditions have created a market where buyers must act strategically, while sellers can potentially benefit from higher demand and competitive bidding.

🏠 Buyer vs Seller Markets Across Regions

South East Melbourne

South East Melbourne, which includes suburbs like Frankston, Carrum Downs, and Dandenong, is showing moderate growth. Properties here are appealing due to relatively affordable prices, access to beaches, schools, and public transport, and steady demand from families and first-time buyers.

Key points:

  • Median house prices are slightly below inner Melbourne, providing better entry points for buyers.

  • Inventory is moderate, which means buyers can still negotiate but competition is increasing.

  • Rental demand is strong, making the area attractive for investors.

Frankston City

Frankston City specifically is experiencing a strong seller’s market, driven by high demand for coastal lifestyle properties and proximity to key amenities.

Key points:

  • Median house prices in Frankston City have risen to around $768,000, a 7.2% increase over the past year.

  • Low inventory and rising buyer interest mean properties often sell quickly, sometimes above asking price.

  • This market favors sellers but requires buyers to act fast and be well-prepared financially.

Comparison to Other Melbourne Areas

  • Inner East (Toorak, Camberwell): High prices, stable growth, limited stock.

  • West (Wyndham, Melton): Affordable, strong growth, attracting first-time buyers and families.

  • South East & Frankston: Offers a mix of affordability and lifestyle, bridging the gap between inner and outer suburbs.

🔍 Key Market Trends for Buyers

  • Rising Competition: Particularly in coastal suburbs like Frankston, buyers need to move quickly.

  • First-Time Buyer Advantage: Lower interest rates make entry-level homes more accessible in outer suburbs.

  • Apartment & Unit Market: Units in South East Melbourne are gaining value faster than houses due to affordability and rental demand.

Tips for buyers:

  1. Get pre-approved for a mortgage before making offers.

  2. Be flexible with settlement dates or minor repairs to improve your chances in competitive areas.

  3. Explore up-and-coming suburbs in South East Melbourne for better value.

🏡 Key Market Trends for Sellers

  • High Demand in Coastal & Lifestyle Areas: Frankston City sellers can benefit from strong interest and potentially multiple offers.

  • Presentation Matters: In buyer-competitive areas, staging and professional photography are critical.

  • Price Strategically: Competitive pricing in South East suburbs can attract multiple buyers quickly.

Tips for sellers:

  1. Monitor local sales closely to price accurately.

  2. Highlight lifestyle benefits such as beaches, schools, and local amenities.

  3. Consider marketing to investors as well as owner-occupiers, especially in areas with strong rental demand.

📊 Comparative Snapshot

Feature South East Melbourne Frankston City Inner East Melbourne Western Suburbs
Median House Price ~$680,000 ~$768,000 ~$1,500,000 ~$600,000
Market Type Balanced to Slight Seller’s Market Strong Seller’s Market Stable Market Buyer-Friendly
Inventory Levels Moderate Low Very Low Moderate
Days on Market Moderate Short Very Short Longer
Price Trends Gradually Rising Rising Rapidly Stable Slowly Rising
Buyer Competition Moderate High Very High Moderate

🌏 International Perspective

Interestingly, Melbourne’s current trends mirror those seen in some US cities where coastal suburbs are in high demand while outer suburbs attract first-time buyers and investors. For a broader comparison, you can explore the US real estate market at Realtor.com to see how coastal demand, inventory, and pricing pressures are similar.

🔑 Strategic Takeaways

  • Buyers: Look to outer South East Melbourne for value or act quickly in Frankston City if lifestyle proximity is key.

  • Sellers: Coastal and lifestyle-oriented suburbs like Frankston City offer excellent opportunities for competitive sales.

  • Investors: Focus on high rental demand areas in South East Melbourne for stable returns.

 

📞 Melbourne Market Trends Are Shifting – Let’s Talk Strategy

At Us Real Estate, we know that understanding the current market is just as important as presentation. Whether you’re buying or selling in Frankston City, South East Melbourne, or beyond, our team can help you navigate today’s trends to achieve the best outcome. From smart staging advice to tailored selling strategies, we guide you every step of the way.

📊 Market Insight Tip: Coastal and lifestyle-focused suburbs like Frankston City are seeing strong seller demand, while outer South East areas offer excellent opportunities for buyers. Knowing where you stand in this market can make all the difference.

📞 Let’s chat about how we can position your property or find your dream home in today’s evolving market.

 

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Because at Us Real Estate, strategy meets results.