Victoria’s next chapter: 1.2 million more residents by 2035

“The property market will see variously sized affordable apartments to suit not only younger first-home buyers, but different family sizes, as well as higherend apartments for downsizers and urban professionals. The affordable land and home packages will have a place on suburban fringes alongside strongly performing inner-ring suburbs. There will still be lifestyle acreage and regional town dwellings needed for those looking for the quieter life outside the cityscape.”

Australia’s shifting demographics are reshaping the future of housing. Mark McCrindle remarked on how homes of the future will need to be flexible and capable of supporting the needs of extended families across different life stages.

“As couples have fewer children, with birth rates at record lows of 1.5 children per woman, the future of housing will see the provision of smaller dwellings. Yet there is also a counter trend based on increased life expectancy, now edging into the late 80s. People are living longer and remaining active and independent later in life. This will lead to more multi-generational households, and with that, the demand for homes that are accessible, adaptable and suitable for the lifestyle needs of extended families.”

After a period of decline in property values, Melbourne is showing signs of rebound. Lifted by improved sentiment, property value in Melbourne is up 1% in the three months to July 2025, reversing the previous quarters of decline. While the recovery from the downturn can be drawn out, there are strongly performing markets all through Victoria.

Source: Property Data Online, July 1 '23-Jun 30 '24 vs. July 1 '24-Jun 30 '25

Analysis of the Victorian Property Sales Report reveals that blue-chip suburbs with strong property value have been robust through the downturn, which is particularly notable in Melbourne’s east. These suburbs are increasingly sought after by Victorians looking for favourable lifestyle factors, strong amenities, quality education and vibrant communities. Although growth might seem only stagnant in some areas, future rate cuts lifting consumer sentiment and increase in demand driven by population growth will likely reinforce these areas’ value. 

As the next decade brings in another 1.2 million residents, the state’s blue-chip suburbs will continue to boast strong value with their universal appeal and proven desirability.