Perth’s property market is no doubt strong right now, but the market I’ll be continuing to watch closely in the new year is Melbourne. It’s entering a stabilising phase with clear signs of renewed confidence.

According to the Real Estate Institute of Victoria, Melbourne has now recorded three consecutive quarters of price growth, including a 2.7% lift in metro house prices in the September 2025 quarter. Clearance rates are rising, competition is returning and demand is strengthening across key northern and western corridors.

Victoria’s broader economic performance reinforces this shift. The Victorian Department of Treasury and Finance reports the state’s economy is now almost 14% larger in real terms than before COVID. Since late 2020, business investment has increased by 46% (compared with 28% across the rest of Australia), and more than 648,800 new jobs have been created, the most of any state according to ABS labour force data. Economic growth is forecast to lift to 2.5% in 2025–26 as inflation moderates and wages begin to outpace living costs.

These foundations matter. Jobs, population growth and business confidence are the gears that sustain long-term housing demand, and all three are trending upward.

While Perth’s market remains tight and competitive, conditions over east are very different, and that early-cycle position is exactly why it’s worth watching. Melbourne also remains more affordable on average than Sydney and Brisbane at the capital-city level, offering relative value in selected suburbs, though careful area selection is still important as the gap narrows.

Long-term infrastructure projects, including major road, rail and precinct upgrades, are reshaping how people move across the city and where future demand will settle. With population growth expected to strengthen through 2025-26, the fundamentals are lining up for steady long-term performance.

This is a market stabilising after a reset, supported by strong economic conditions, early price growth and improving sentiment. For WA farming families building off-farm wealth through syndication and direct investment opportunities, it offers value, choice, upside and long-term drivers all in the one place.

Andrew Johnson
Managing Director/Principal
M: 0418 194 101
E: andrew@jpg.com.au