Melbourne Property Market Shows Signs of Recovery

After being the hardest hit capital city in the post-COVID property cycle, Melbourne is showing early signs of market recovery that could present opportunities for strategic buyers and investors.

Market Reset

‍Melbourne's property values declined significantly compared to other capitals, creating what experts describe as a "unique market timing opportunity." The city now sits as the nation's third most affordable capital city, with a median home price of $774,093.

Growth Catalysts

‍Several factors are supporting Melbourne's recovery:

• Interest rate cuts improving borrowing capacity
• Reduced investor competition in the sub-$800,000 segment
• Ongoing population growth despite temporary slowdowns
• Infrastructure investment continuing across the metropolitan area

Suburb Spotlight

‍Outer Melbourne suburbs are showing particular promise, with improved affordability attracting both first home buyers and investors seeking value. Areas with good transport links and amenity access are leading the recovery.

Investment Strategy

‍Property strategists suggest Melbourne offers a contrarian investment opportunity, with the market positioned for recovery as interest rates fall and buyer confidence returns.