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Melbourne\u2019s property market has roared back to life, with almost 90 per cent of suburbs recording price growth in the past quarter, the city\u2019s fastest recovery in more than two years. Picture: Manuela Cifra<\/p>\n
Melbourne\u2019s housing market has turned a corner, posting its fastest quarterly rise in more than two years and marking the end of the city\u2019s post-pandemic slump.<\/p>\n
PropTrack\u2019s latest quarterly figures show 371 Melbourne suburbs recorded higher house values in the September quarter as part of a \u201chealthy recovery\u201d, while only 36 fell or held flat.<\/p>\n
That means almost 90 per cent of suburbs are now in growth mode, confirming momentum has returned across every corner of the city. Anniversary auction joy for Epping couple<\/a><\/p>\n Global fast-food giants taking over Australia<\/a><\/p>\n The biggest jump for houses came in Hawthorn, where the median house price surged $223,000 (9 per cent) to $2.81m.<\/p>\n Marshall White Boroondara director Chris Barrett said the sharp rise reflected renewed demand for prestige family homes.<\/p>\n \u201cHawthorn has always been one of Melbourne\u2019s most in-demand suburbs,\u201d Mr Barett said. <\/p>\n Mr Barrett said more high-quality family homes were hitting the market as long-time owners and baby boomers downsized, creating rare buying opportunities for families and professionals.<\/p>\n CLICK HERE TO SEE HOW YOUR SUBURB PERFORMED DURING THE SEPTEMBER QUARTER<\/a><\/b><\/p>\n 93 Liddiard St, Hawthorn (Sold in September for $3.7m)<\/p>\n \u201cSince Covid, a lot of owners held onto big homes because everyone wanted space, but that mindset is shifting,\u201d he said. Hawthorn was the only inner-east suburb among Melbourne\u2019s top-growth performers, outpacing a list dominated by northern and outer-south-east postcodes.<\/p>\n Marshall White Boroondara director Chris Barrett says Hawthorn\u2019s sharp rise shows prestige buyers are back, as downsizers and families compete for blue-chip homes.<\/p>\n 28 Melville St, Hawthorn (Sold: $2.5m)<\/p>\n Coolaroo followed with an $41,000 (8 per cent) lift to $589,000, while Frankston North rose $43,000 (7 per cent) to $647,000.<\/p>\n The results show both the prestige and affordable ends of Melbourne are rising in tandem.<\/p>\n Other strong performers included Wheelers Hill, where unit values jumped 20.2 per cent, and Campbellfield and Chelsea Heights, both recording quarterly gains near 9 per cent.<\/p>\n Middle-ring suburbs such as Preston, Wallan and Strathtulloh climbed about 3 per cent, in what economists have called \u201csteady, sustainable growth\u201d.<\/p>\n 7 Lakewood Boulevard, Melton (Sold: $594,000)<\/p>\n 26 Pittosporum Grove, Doveton (Sold in September: $660,500)<\/p>\n PropTrack senior economist Angus Moore said Melbourne, once the slowest of Australia\u2019s capital markets, had clearly shifted gears in 2025 as lower interest rates, stabilised interstate migration and renewed buyer confidence lifted demand.<\/p>\n \u201cWe\u2019re seeing consistent growth again. Prices are moving up month after month,\u201d Mr Moore said. <\/p>\n \u201cIt\u2019s not a boom, but it\u2019s a healthy recovery built on renewed affordability and buyer depth.\u201d<\/p>\n PropTrack senior economist Angus Moore says Melbourne has shifted gears in 2025, with easing interest rates and stabilised migration driving steady, consistent price growth.<\/p>\n 3 Warneet Rd, Warneet (Sold in September for $661,000)<\/p>\n The PropTrack Home Price Index shows wider Melbourne values rose 1.4 per cent in the September quarter, taking the city\u2019s prices 3.5 per cent higher since January, the strongest stretch since 2022.<\/p>\n Across the nation, the housing divide that opened during the pandemic is narrowing.<\/p>\n Adelaide, Brisbane and Perth \u2014 which nearly doubled in value between 2019 and 2024 \u2014 have cooled to quarterly growth of 0.3 to 0.5 per cent, while Melbourne\u2019s momentum continues to build.<\/p>\n With a median dwelling value around $805,000, the city now sits roughly 20 per cent below Sydney, drawing both investors and first-home buyers back in search of better value.<\/p>\n \u201cThe smaller capitals that had the big run are losing pace, and Melbourne and Sydney are catching up,\u201d Mr Moore said. <\/p>\n \u201cWe\u2019re seeing a levelling out of the national market, and that\u2019s healthy.\u201d<\/p>\n 15 Authentic Ave, Cranbourne South (Sold in September $830,000)<\/p>\n Buyers\u2019 advocate Frank Valentic says Melbourne is now the \u201ccomeback capital\u201d, with rising confidence, rate cuts, and strong auction momentum pushing prices higher across the city.<\/p>\n Advantage Property Consulting director Frank Valentic said the turnaround had been swift and decisive.<\/p>\n \u201cMelbourne is officially past the bottom of the cycle,\u201d Mr Valentic said. Mr Valentic said this rebound felt markedly different to the Covid-era boom that sent prices soaring.<\/p>\n \u201cThat boom was fuelled by panic and record-low rates,\u201d he said. 5\/64-66 Stewart Grove, Campbellfield (Sold: $346,000)<\/p>\n Mr Valentic said investor sentiment had also shifted, with growing interest from interstate buyers who now saw Melbourne as undervalued.<\/p>\n \u201cWe\u2019re seeing strong inquiry from Brisbane and Adelaide investors who\u2019ve built equity at home and are looking south for long-term growth,\u201d he said. Buxton said one in five of his buyers were now using the five per cent First Home Guarantee, a key driver of renewed interest in the southeast and bayside markets.<\/p>\n \u201cWe\u2019re seeing families who were renting in Bentleigh or Hampton East now buying in those same postcodes,\u201d Mr Gigis said. Melbourne\u2019s housing market is heating up again, led by strong demand across both prestige and affordable suburbs as buyers and investors return in force. Picture: Jake Nowakowski<\/p>\n According to latest data in the Australian Bureau of Statistic\u2019s National, State and Territory Population stats, Victoria recorded positive quarterly net interstate migration in March \u2014 the first time since the pandemic, and part of a broader population rebound driven by overseas migration. <\/p>\n The report also showed Victoria\u2019s population grew 1.8 per cent in the year to March 2025, behind Western Australia (2.3 per cent) and equal with Queensland (1.8 per cent).<\/p>\n PropTrack forecasts suggest the city\u2019s prices could rise another 5 to 10 per cent in the next year, if interest rates continue to ease and listings stay stable.<\/p>\n Top 10 Melbourne house suburbs September 2025 quarter<\/p>\n Source: PropTrack AVM data<\/p>\n Top 10 Melbourne unit suburbs September 2025 quarter<\/p>\n Source: PropTrack AVM data<\/p>\n Sign up to the Herald Sun Weekly Real Estate Update. Click here <\/a>to get the latest Victorian property market news delivered direct to your inbox.<\/p>\n MORE: Buyer splashes $17m on major South Melb site<\/a><\/p>\n
RELATED: Inside Vic $1m+ barrel in the sky<\/a><\/p>\n<\/p>\n
\u201cThe next generation is stepping in and paying for quality.\u201d<\/p>\n<\/p>\n
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\u201cBuyers who were waiting for the bottom have missed it. The three rate cuts we\u2019ve had this year have reignited confidence and turned the city back into a sellers\u2019 market.\u201d<\/p>\n
\u201cThis one\u2019s driven by genuine confidence and affordability.
\u201cBuyers are informed, but they\u2019re acting fast.\u201d<\/p>\n<\/p>\n
\u201cThey see Melbourne as the comeback city.\u201d<\/p>\n
\u201cRenewed competition is the best way to describe the Melbourne market right now.\u201d<\/p>\n<\/p>\n
\n Suburb<\/td>\n Median Value ($)<\/td>\n Quarterly Growth<\/td>\n Dollar Increase ($)<\/td>\n<\/tr>\n \n Hawthorn<\/td>\n 2,807,547<\/td>\n 8.60%<\/td>\n 241,849<\/td>\n<\/tr>\n \n Coolaroo<\/td>\n 589,000<\/td>\n 8.00%<\/td>\n 47,120<\/td>\n<\/tr>\n \n Frankston North<\/td>\n 647,000<\/td>\n 7.00%<\/td>\n 45,290<\/td>\n<\/tr>\n \n Warneet<\/td>\n 1,052,000<\/td>\n 6.90%<\/td>\n 72,588<\/td>\n<\/tr>\n \n Melton<\/td>\n 555,000<\/td>\n 6.50%<\/td>\n 36,075<\/td>\n<\/tr>\n \n Doveton<\/td>\n 655,000<\/td>\n 6.30%<\/td>\n 41,265<\/td>\n<\/tr>\n \n Broadmeadows<\/td>\n 610,000<\/td>\n 6.00%<\/td>\n 36,600<\/td>\n<\/tr>\n \n Eumemmerring<\/td>\n 630,000<\/td>\n 5.90%<\/td>\n 37,170<\/td>\n<\/tr>\n \n Cranbourne South<\/td>\n 950,000<\/td>\n 5.50%<\/td>\n 52,250<\/td>\n<\/tr>\n \n Deanside<\/td>\n 720,000<\/td>\n 5.00%<\/td>\n 36,000<\/td>\n<\/tr>\n \n Suburb<\/td>\n Median Value ($)<\/td>\n Quarterly Growth<\/td>\n Dollar Increase ($)<\/td>\n<\/tr>\n \n Wheelers Hill<\/td>\n 888,331<\/td>\n 20.20%<\/td>\n 179,450<\/td>\n<\/tr>\n \n Campbellfield<\/td>\n 481,698<\/td>\n 14.20%<\/td>\n 68,391<\/td>\n<\/tr>\n \n Chelsea Heights<\/td>\n 749,408<\/td>\n 9.00%<\/td>\n 67,447<\/td>\n<\/tr>\n \n Delahey<\/td>\n 539,917<\/td>\n 8.80%<\/td>\n 47,513<\/td>\n<\/tr>\n \n Meadow Heights<\/td>\n 520,077<\/td>\n 8.30%<\/td>\n 43,167<\/td>\n<\/tr>\n \n Dallas<\/td>\n 486,237<\/td>\n 7.80%<\/td>\n 37,925<\/td>\n<\/tr>\n \n Huntingdale<\/td>\n 675,000<\/td>\n 6.50%<\/td>\n 43,875<\/td>\n<\/tr>\n \n Keilor East<\/td>\n 690,000<\/td>\n 6.00%<\/td>\n 41,400<\/td>\n<\/tr>\n \n Lalor<\/td>\n 515,000<\/td>\n 5.50%<\/td>\n 28,325<\/td>\n<\/tr>\n \n Jacana<\/td>\n 495,000<\/td>\n 5.00%<\/td>\n 24,750<\/td>\n<\/tr>\n