As a buyer’s agent at Abode Advocacy Group, I spend a lot of time studying market data so my clients can make confident, well-timed property decisions. The latest KPMG Residential Property Market Outlook has confirmed what I’ve been seeing on the ground for months: Melbourne’s market is poised for strong growth, and buyers who wait until 2026 may end up paying a lot more.
The Numbers You Need to Know
According to KPMG, Melbourne house prices are forecast to rise 5.2% in 2025 and then accelerate to 6.6% in 2026. That’s an increase of over 11% in just two years – adding roughly $111,000 to the median Melbourne house price.
For units, the growth projection is 3.6% in 2025 and 7.1% in 2026 – equating to an additional $66,000 over the same period.
The simple takeaway? Every month you delay could cost you thousands.
Why 2025 Offers a Sweet Spot for Buyers
Here’s why I believe 2025 represents a golden window of opportunity:
- Prices are rising – but not yet surging
While growth is forecast for this year, it’s still moderate compared to the jump expected in 2026. Buying now allows you to benefit from capital growth without facing the steeper competition and higher prices of next year. - Interest rate cuts are boosting confidence
With the RBA beginning to ease rates earlier than expected, buyer sentiment is improving. More buyers in the market later in 2025 will mean more competition – acting sooner puts you ahead of the rush. - Melbourne’s relative affordability is attracting attention
After lagging behind some other capitals in recent years, Melbourne is now seen as offering value for money. This is drawing interest from both interstate and international buyers, adding pressure to the market. - Unit market gaining momentum
Affordability constraints and low new supply are driving more buyers toward apartments and townhouses. This segment is expected to see particularly strong growth in 2026, so securing a quality property in 2025 could be a smart investment move.
What This Means for Our Clients
At Abode Advocacy Group, our role is to ensure you buy the right property at the right price – and at the right time. Based on these forecasts, waiting could mean:
- Paying significantly more for the same property in 12 months.
- Competing against a larger pool of motivated buyers.
- Missing the opportunity to benefit from both 2025 and 2026 capital growth.
Final Word
If you’ve been sitting on the sidelines, the data is clear – Melbourne’s market is on the move. With strong growth forecasts, improving buyer sentiment, and increased competition on the horizon, 2025 presents a prime opportunity to secure a home or investment before the market gains even more momentum.
At Abode Advocacy Group, we specialise in finding and securing the best properties for our clients – on and off the market – ensuring you’re not just buying in the market, but ahead of it.
