Despite Melbourne’s property market experiencing price declines throughout 2024, industry experts anticipate a strong rebound in 2025, positioning the city as a prime location for property investment.
Hotspotting’s Top 10 National Best Buys report highlights Melbourne’s unique growth potential, driven by its affordability compared to Sydney, strong population growth, and significant urban renewal projects. Terry Ryder, Hotspotting’s director, noted, “Melbourne faced challenges in 2023 and 2024, but it’s poised for a comeback next year (2025).”
Domain’s Chief of Research, Dr Nicola Powell, forecasts median house price growth of 3–5% as Melbourne enters a “catch-up growth phase.” She adds, “What will spark the massive return of investors for Melbourne is when we start to see better growth prospects.”
Key investment areas in Melbourne include the metro and southeast regions, such as the City of Casey, which is known for its appeal to first-home buyers and long-term growth. Rising demand for well-located attached dwellings drives rental and price increases, making this market particularly attractive.
Melbourne isn’t the only standout for 2025. Darwin also shows promise, offering affordable property and high rental yields, particularly in suburbs like Zuccoli and Bellamack.
The Hotspotting 2025 best buys list includes:
- Victoria: City of Melbourne, City of Casey, City of Ballarat, Albury/Wodonga
- New South Wales: City of Sydney, Tamworth, Albury/Wodonga
- Queensland: Sunshine Coast, Redland City
- Northern Territory: Darwin
- Tasmania: Launceston
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