The past year has brought renewed energy to Melbourne’s Inner North property market. Falling interest rates and renewed buyer confidence are driving stronger turnout at open homes and auctions. While affordability remains a hurdle – particularly for first-home buyers – the market has proven resilient, with well-presented, well-priced homes attracting solid interest.
Family buyers have been especially active, particularly upsizers and those prioritising lifestyle. Limited supply has underpinned price stability, especially for well-located, high-quality homes. Properties needing significant renovation are slower to move unless priced to reflect the work required. Off-market sales have also increased, often succeeding where agents have strong buyer networks and local relationships.
Properties are not only selling, but sale prices are also often exceeding expectations – and with talk of further interest rate cuts, there’s growing optimism that this momentum will continue.
On the rental front, the past two years have seen investors selling, largely due to rising holding costs, land tax and compliance requirements. This reduction in rentable stock has pushed rents steadily upward, increasing the appeal of home ownership for many renters and with more favourable interest rates and selling prices, investors are returning to the market.
Investors are shifting strategies, with fewer large portfolios and more ‘mum and dad’ buyers entering the market. Many are choosing shorter lease periods while weighing up whether to sell, prompted by increased costs and tightening compliance requirements.
In construction, high costs and trade shortages have slowed the delivery of new housing. Newly built homes remain popular, especially among first-home buyers and investors seeking low maintenance options. We’re seeing more medium density living, including townhouses and low-rise apartments
