Buyer confidence has steadily rebounded across the Yarra Ranges over the past 12 months. After a subdued second half of 2024, the recent interest rate cuts, along with expectations of more to follow, have sparked an upswing in buyer activity.
With first-home buyers and families eager to act before prices rise, the market has shifted into a more active and competitive phase.
Demand remains strongest for family homes, particularly in established areas like the Lakes and Gateway estates in Lilydale, Blue Ridge in Mooroolbark, and newer communities such as Cloverlea in Chirnside Park. Properties priced between $850,000 and $1.1 million are performing well, while Mount Evelyn continues to attract first home buyers. The Yarra Valley is also seeing increased activity, with strong sales in Healesville, Yarra Glen and Wandin North.
The property management landscape in the Yarra Ranges has undergone significant shifts over the past year, influenced by investor sentiment, regulatory changes and evolving market dynamics. The increasing number of investors exiting the rental market has reduced supply and placed upward pressure on rents – a trend likely to continue in the year ahead.
On the construction front, developers have been reluctant to launch new projects due to rising costs, uncertain resale values and broader industry concerns. Demand for land remains strong, although options are limited. Kinley’s next stage remains some time away, and blocks in Coldstream have already been snapped up by owner occupiers keen to build.
The Yarra Ranges is on a strong growth trajectory, with the population forecast to grow by about 13% by 2046.1 This growth is being supported by major infrastructure projects that will enhance the region’s connectivity and overall appeal.
The Lilydale line is now level-crossing free, with a new underpass at Cave Hill Road and safer turning at Lilydale High School. Level crossing removals at Manchester Road, Mooroolbark Lilydale and Maroondah Highway have boosted safety and connectivity, while the Montrose roundabout removal and Canterbury Road lane widening has improved traffic flow.
