Investor confidence grows as property market gains momentum
Teleisha Thomas
July 2025Following two cash rate cuts from the RBA in February and May, the property market is showing clear signs of renewed momentum, and there are early signs of capital growth potential. Investors should be pleased to see more activity in the sales market, typically signalling increasing demand and price growth. For investors, this means the value of existing assets may appreciate, while new purchases made during this period stand to benefit from upward movement in the market.
Melbourne remains firmly positioned as a global investment leader on the global stage. With rental vacancy rates at 1.4%^ in May 2025 a clear sign of ongoing demand.
Andrew McCann, Jellis Craig CEO, said there was a clear shift in buyer confidence.
The market is responding to improving conditions, and we’re already seeing the early signs of a more competitive, active landscape heading into spring.
From an investment perspective, the data is encouraging. A 15% increase in new listings across metro Melbourne in Q2 2025 vs the same time last year signals stronger supply. Auction competition is heating up. Jellis Craig has seen a 10% increase in bidders per property sold under the hammer at auction. Further, our average auction clearance rates in Metro-Melbourne increased from 75% in Q2 2024 to 80% in Q2 ’25, consistently outperforming the market average of 68%*.
This uplift isn’t limited to Melbourne. Across regional Victoria including Geelong, Ballarat, Central Victoria and the Peninsulas. Jellis Craig has seen a 13% year-on-year increase in open for inspection attendance, a key indicator of market momentum. Sales volumes have remained steady, supporting the view that these regional markets continue to offer great value and solid long-term growth potential.
Regional satellite cities offering hobs and improved transport links to Melbourne are expected to grow in popularity as affordability pressure persist
Tim Lawless, Executive Research Director, Cotality
After a prolonged extended period of high interest rates, recent cuts have started to restore confidence and activity, particularly among buyers and investors who had adopted a wait-and-see approach. With further rate reductions on the horizon, conditions are aligning for a strong period of recovery and a favourable landscape for the remainder of 2025 and beyond.
