Melbourne’s property market is shaking off its winter lull, with auctions holding steady and first-home buyers driving fresh competition across the city.
Melbourne’s property market is shaking off its winter lull, with auction numbers steady on last year and a flood of first-home buyers reshaping the city’s spring selling season.
New figures from Loan Market Group show Victoria has become the nation’s undisputed first-home buyer capital.
The state accounted for 39 per cent of all loans written for new buyers in June, with applications up more than a third over the past year.
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Melbourne’s eastern suburbs attracted 12 per cent of all first-home buyer loans nationally, followed by the inner city, 11.4 per cent, and the western growth corridors, 7.7 per cent.
LMG chief executive David McQueen said the influx of young buyers was reshaping the market.
“Almost one in five loans written in Victoria were for first-home buyers, positioning the state as the hotspot for those making the leap from renting to owning,” Mr McQueen said.
“The inner city has been popular with young professionals, the eastern corridor is attracting families, and the west continues to deliver price accessibility and new-build appeal.
“There’s been a distinct turnaround in Melbourne for first-home buyers.”
Loan Market Group chief executive David McQueen says first-home buyers are returning in force, with Victoria leading the nation for new buyer loans.
Nationally, first-home buyers made up 13 per cent of all loans written in June — the highest since LMG began tracking the data in 2022 — while activity among upgraders and investors flattened.
Jellis Craig chief executive Andrew McCann said the shift in buyer demand was being amplified by renewed confidence after a long-awaited series of rate cuts.
“We’ve seen a few really strong weekends of auctions across the board and it’s painting a very optimistic picture,” Mr McCann said.
“The Melbourne market is back in a big way … August is the new spring when it comes to real estate.
“Buyer numbers are up, clearance rates are up, and prices are up.”
Jellis Craig chief executive Andrew McCann says confidence has surged after interest rate cuts, declaring August the “new spring” as clearance rates and buyer turnout climb.
Mr McCann said sellers were increasingly listing early to take advantage of strong conditions rather than waiting until September.
“Gone are the days when people hold off until spring proper seller are now moving sooner to avoid competition with other listings and maximise demand,” he said.
PropTrack senior economist Angus Moore says Melbourne is experiencing its most consistent period of price growth in years, underpinned by renewed buyer demand.
PropTrack senior economist Angus Moore said Melbourne’s market had entered a more stable phase after three years of patchy performance.
“We’re seeing firmer conditions across Melbourne than we’ve seen for quite some time, with the return of consistent — albeit moderate — price growth,” Mr Moore said.
“Lower rates boost borrowing power and reduce mortgage costs, which naturally supports demand and puts upward pressure on prices.
“Affordability is still stretched compared to five years ago, but the outlook for the rest of 2025 is one of modest, steady growth.”
PropTrack data shows 933 homes are set to go under the hammer this week, broadly in line with the same time in 2024, while 1137 auctions are already scheduled for next week.
Top suburbs Mickleham, Mount Waverley, Camberwell, Glen Waverley and Reservoir will host the most auctions this weekend, as sellers rush to meet rising demand. Picture: Ian Currie.
It marks a return to stability for Melbourne after several disrupted winters, and sets the stage for a spring surge.
At the suburb level, Mickleham and Mount Waverley lead the charge this weekend with 15 scheduled auctions each. Camberwell and Glen Waverley follow with 14 apiece, while Reservoir rounds out the top five with 13.
Mount Waverley has become a fixture in Melbourne’s auction rankings thanks to its large housing stock and enduring family appeal, while Camberwell and Glen Waverley remain blue-chip favourites with buyers competing for school zones and lifestyle.
Mickleham and Reservoir represent the opposite end of the spectrum, drawing younger and first-time buyers into the market with relative affordability and growth-corridor supply.
Auctions To Watch
Buyers chasing luxury will be circling this Norwood-built showstopper.
Listing agent Stefan Whiting says the home has “real character” compared to typical white-box builds, and left buyers “stunned by its cool, luxe feel.”
Price guide: $3.3m-$3.5m
Agent: Stefan Whiting, Buxton Brighton
98 Meander Rd, Hurstbridge
This five bedroom residence has been a magnet for young trade families keen to renovate and add value.
With cathedral ceilings, treetop views and a recent extension the home is a “blank canvas” ready for equity-boosting upgrades.
Price guide: $790,000-$850,000
Agent: Kylie McGrath, Ray White Diamond Creek
A newly built family home with period-style charm and a back yard pool is set to be hotly contested.
The residence blends open-plan living with classic touches. It also features a gas-heated pool and spa, underfloor heating and off-street parking for two cars.
Price guide: $2.6m-$2.8m
Agent: Brad Cooper, Ray White Balwyn
30 Darinda Crt, Mount Martha
30 Darinda Court, Mount Martha
Buyers are chasing this entry-level opportunity. Listing agent Luke Magree says the home had one owner with buyers motivated by its “affordability and uplift potential”.
Several bidders are expected to contend at the auction.
Price guide: $690,000-$759,000
Agent: Luke Magree, O’Brien Frankston
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