Melbourne Economic Update – August 2025

Overview

Melbourne Property Prices Edge Higher as Confidence Returns

Melbourne’s housing market is showing signs of real momentum, shaking off a slow start to 2025 with steady price growth, rising buyer demand, and tightening auction conditions. With Spring now underway, the city appears to be transitioning from recovery to a more consistent growth phase, supported by stable rental conditions and renewed lending activity.

“Melbourne’s market is slowly but surely turning the corner,” says our Chief Economist. “Auction clearance rates are climbing, prices are rising, and buyer confidence is returning – all the hallmarks of a market gearing up for sustained growth.”

Price growth has remained steady through Winter, taking Melbourne’s median house price close to $798,000 and on track to reach $815,000 by year-end – a 4-5% annual gain. With listings tightening, buyer activity rising, and investor interest building, the next quarter will be key in determining whether Melbourne shifts into a stronger growth cycle.

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Our research

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What we research

What we research

At Follio, we produce ongoing market reports, suburb-level insights, portfolio case studies, and educational content to guide every investment decision. From high-level trends to on-the-ground opportunities, our research is designed to keep both our team and you ahead of the curve.

What we track

What we track

Our research team tracks the data that matters the most. We assess; macroeconomic indicators, housing supply and demand, vacancy rates, rental yield, population growth, infrastructure projects, employment trends and much more. By monitoring these key indicators across Australia’s core market and suburbs, we identify opportunities that align with your long-term goal.

How and why we do it

How and why we do it

From your first purchase to portfolio expansion, every recommendation we make is backed by research. Led by our Chief Economist, our in-house research team ensures every client strategy is informed by the latest market insights and macroeconomic trends. Our research is not just for us. We share our insight with clients at every stage, so you’re empowered, informed, and confident in every step of the journey.

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