Vaibhav Grover is a seasoned business specialist and trusted advisor, helping Australians confidently navigate real estate, business, and investment opportunities across Victoria and beyond.
Economic Snapshot: Stability with a Twist
As we hit the halfway mark of 2025, Victoria’s property market is sending mixed — yet exciting — signals.
Australia has officially dodged a recession, but only thanks to booming population growth, particularly in Victoria, which welcomed nearly 147,000 new residents this past year (largely from overseas migration). This surge has helped prop up demand despite:
✅ Shrinking per capita GDP
✅ Cost of living rising +21% since March 2020, outpacing wage growth (+16%)
✅ Interest rates entering an easing cycle, lifting sentiment but leaving some tariff-driven uncertainty in the air
Property Prices: A Patchwork Picture
Victoria’s market performance varies by region and property type:
👉 Melbourne median house price: $781,000 (slightly off its peak)
👉 Unit prices: Inner Melbourne up +4.1% QoQ, outer suburbs showing minor softening
👉 Regional towns like Bendigo and Warrnambool: Stable to modest growth
Remarkably, 87% of Australians believe home prices will remain stable or rise over the next year — signaling resilient demand despite economic headwinds.
🔑 Rental Market: Affordable but Tightening
Victoria continues to boast the most affordable rents among capital cities, with a median of $575/week. Yet renters are feeling the pinch:
👉 43% are compromising on price, location, or property features
👉 Financial stress is rising, particularly among younger renters
👉 The rental pool has shrunk by 21,700 properties over FY24, fueling competition
💼 Investor & Buyer Activity: Waking Up
Investor momentum is picking up:
⭐ Investor lending is on the rise, particularly in WA and QLD, but Victoria remains a hot market
⭐ First-home buyer incentives — like the 5% deposit guarantee and the $10 billion Housing Fund — are designed to unlock more supply and lower entry barriers for buyers
🚧 Supply Challenges: A Critical Bottleneck
Victoria faces a mounting housing shortfall due to:
🚨 Slow construction approvals
🚨 Prolonged completion times (10+ months for houses, nearly 28 months for apartments)
🚨 Ongoing labor and materials constraints
The result? Demand continues to outpace supply, keeping upward pressure on prices and competition.
✨ Final Takeaway from Vaibhav Grover
For buyers, sellers, and investors, the opportunities in Victoria’s 2025 property market are real and promising — but expert advice and a hyper-local strategy are critical.
I recommend working with an experienced advisor who understands the regional nuances, upcoming growth pockets, and shifting policy landscape. Whether you’re looking to expand your portfolio, buy your first home, or sell for top dollar, smart navigation is the key to success.
📣 Source: This update is proudly brought to you by Vaibhav Grover, Business Specialist, Investor & Market Advisor.
Want to discuss how these trends impact your property journey?
Contact: 0470 133 725 | 📧 Email: vaibhav@greenfieldsre.com.au