Why now could be the smartest time to buy in Melbourne’s property market

If you’ve been watching the property market in Melbourne over the past few years, you’d know just how much of a rollercoaster ride it’s taken us on. With house prices rising and dropping, the rental market crisis and external factors like interest rates and economic conditions, it’s no wonder that many investors are feeling a bit cautious.

Despite all of this, our very own Managing Director Michael’s opinion is that this could be the perfect moment to make a move. In a recent feature in the Australian Financial Review he said: “Melbourne is still a declining market, but it’s not far away from hitting the bottom – and that’s a very, very smart place to buy.”

So why is now a good time to buy, and what do you need to know about the Melbourne property market to set you up for success?

Timing the market: Why it’s good to buy at the bottom

The best time to invest is when the market is at its lowest – just before the inevitable rebound, and according to Michael, Melbourne is approaching this point.

On buying now, he says: “Then you can ride the uplift that’ll be coming in the next two, four, six years. In that sense, Melbourne is emerging from the cocoon it’s been in and turning into a butterfly.”

Buying at the bottom means that homes are cheaper than they were at their peak – meaning you get more for your money, but there are some other perks too:

Less competition as there are less buyers in the market: This means less bidding wars, better deals, and some sellers even willing to drop the price to make a sale
More growth potential: Buying at a low price when these prices are set to rise later means your property becomes worth more, giving you the potential for much bigger future profits.
More choice: When the market is slow there are more homes available and much more choice, so you can ensure you’re choosing QUALITY property – without the pressure.

Why Melbourne’s property market has strong fundamentals

Sure, Melbourne’s property market has had a rollercoaster ride over the past few years, but that doesn’t change the fact that the market itself is underpinned by some very solid fundamentals – making it an enticing place to buy as a smart investor. Let’s have a look at some of them:

Population growth: Melbourne is one of the fastest growing cities in Australia, with the current metro population in 2025 sitting at 5,392,000 – a 1.43% increase from 2024. And one thing we know for sure about population growth is that it fuels demand for housing, helping to drive long-term price growth.
Lifestyle appeal: Melbourne has been ranked as the World’s Most Liveable City a whopping 7 times according to the Economist Intelligence Unit’s (EIU) Global Liveability Index. And even when it hasn’t won, it’s ranked highly! From major sporting events to an exciting arts, food and coffee scene, Melbourne brings in people from all over, making it not only an attractive place to live but a reliable place to invest.
Great infrastructure and public transport: Accessibility is key when choosing a solid investment location, and Melbourne’s quality public transport system provides just that. The government is also making ongoing investments in infrastructure projects which supports long-term growth and improves property values in areas these are taking place.
Strong rental demand: With a rising population, a large number of students looking for housing and increased migration to the city, Melbourne has one of the strongest rental demands in Australia. High rental demand means lower vacancy rates, and some very steady rental returns which is KEY for investors who are looking to build a profitable portfolio over the long term.

Of course everybody’s situation is different, and whether or not now is the right time to invest for you should depend on your individual goals, situation and long-term strategy.

But in saying this, if you’ve been considering investing in Melbourne, this could absolutely be the opportunity you’ve been waiting for. We’re here to help you explore your options and provide you with the guidance you need to invest strategically and in-line with where you’re at right now (and where you want to be in the future!)