Melbourne: The Comeback Trail

Melbourne’s housing market has lagged the rest of Australia in recent years, weighed down by prolonged lockdowns, higher property taxes, and subdued investor sentiment. Prices have fallen behind peers such as Brisbane, Adelaide and Perth for the first time in decades. But 2025 signals a turning point. With interest rates now falling, demand strengthening and affordability improving, Melbourne is on the road to recovery.

For developers and investors, this creates a rare window of opportunity. A city long known for its resilience is now positioned to benefit from strong population growth, stabilising migration patterns and renewed housing demand. Melbourne’s price discount is set to persist in this cycle – but that affordability advantage will underpin a stronger rebound compared to more expensive markets.

Our latest research explores the catalysts behind this comeback and what it means for developers and investors.

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