The Stonnington property market has experienced a year of dynamic shifts, shaped by seasonal slowdowns, economic factors and evolving buyer sentiment.
The year began strongly, with solid sales activity sustaining buyer confidence and keeping prices firm. In early autumn, momentum softened due to school holidays, long weekends and the uncertainty of the federal election. However, demand for fully renovated, family friendly homes remained consistently high, with strong competition driving standout results.
The recent Reserve Bank cash-rate cuts helped lift market sentiment. More cuts anticipated later in 2025 could spur further activity, though affordability pressures and lending restrictions remain a challenge for some. A measured approach from both buyers and sellers will be key.
Stonnington’s lifestyle appeal, from top-tier schools and transport connections to premium retail and overall safety, continues to draw interest. A limited supply of turnkey family homes has driven prices at the premium end to exceed even the pandemic peak in select cases.
In the rental market, early 2025 has seen more properties retained for lease rather than sold, signalling the return of some investor confidence. This is partly due to increased rental prices, though growth is beginning to moderate as vacancy rates rise in the region. The days of long queues at rental inspections have passed, with market conditions returning to more balanced, pre-pandemic patterns.
Compliance changes and minimum standards continue to present challenges, but landlords are increasingly confident in managing these requirements. High construction costs and complex planning processes are fuelling demand for move-in-ready homes, with many buyers willing to pay a premium to avoid renovation.
