Central Victoria’s property market has experienced renewed momentum during the first half of 2025, following a year of steady recovery and shifting buyer confidence. Demand has surged in recent months, spurred by the recent interest rate cuts and a growing belief that we’ve reached the bottom of the regional market cycle. Further rate reductions are expected to sustain this trend, particularly in towns popular with lifestyle seekers and tree changers.
Vendors with well-priced properties – particularly under $1.2 million – are seeing faster sales and, in some cases, competitive bidding. This is contributing to a two-speed market that may drive growth in the second half of the year as supply tightens. Lifestyle properties remain in demand, with a broad range of stock offering good buying opportunities.
Rental demand also remains strong, as more people move to the region for its lifestyle appeal. Vacancy rates are still very low, especially for two- and three-bedroom homes, which continue to deliver reliable yields for investors. In Daylesford, more property owners are shifting from short-term rentals to long-term tenancies, driven by a desire for income stability. In Woodend, rental availability has tightened markedly, with many providers selling, moving back in or exiting the market due to rising land taxes and stricter compliance requirements.
In construction, interest is rising in subdividable properties across Daylesford, Hepburn Springs and surrounds, though high building costs remain a concern. While ‘The Block’ has generated some buzz in Daylesford, it hasn’t significantly impacted enquiry or prices. However, we are experiencing an increase in numbers at open for inspections, which reflects a stabilising market providing excellent value for money.
At the same time, investment in local infrastructure is helping to support market activity and improve liveability across the region.
