We sat down with our Richmond directors to explore how the past year has unfolded and what lies ahead for the local property market.
How has the Richmond property market performed in the last 12 months?
Conditions have balanced, with elevated stock levels giving buyers choice and shifting some negotiating power their way. Owner-occupiers have driven most activity, with investor participation subdued. Turnkey homes continue to attract competitive bidding. Rental conditions remain tight, with sustained growth supported by strong tenant demand, limited supply and lifestyledriven inner-city migration. Richmond’s proximity to the CBD, established market and lifestyle amenities continues to underpin its appeal as a vibrant inner-city neighbourhood offering real value.
Richmond and surrounds should show greater resilience than outer metro markets. Buyer demand is driven by lifestyle, location and long-term capital growth, rather than borrowing capacity.
Which suburbs in and around Richmond look best placed for stability over the next 12 months?
Burnley is a standout. Former industrial sites are being transformed into high-end townhouses and boutique apartments, attracting owner-occupiers seeking quality low-maintenance living. Proximity to the Yarra River, the redesigned Burnley Golf Course, freeway access and strong transport links underpin long-term demand.
How do you expect your market will respond to further potential cash rate adjustments?
Richmond and surrounds should show greater resilience than outer metro markets. Buyer demand is driven by lifestyle, location and long-term capital growth, rather than borrowing capacity. Higher rates may moderate growth, but are unlikely to materially affect demand for well-located properties. Rising mortgage costs would further tighten rental supply and reinforce rental values.
Median property prices
Source: Cotality, 01/04/2025 - 31/03/2026 Where a suburb is split across a LGA, the whole suburb has been used to determine a median. Where there are insufficient sales within a suburb over a 12-month period, a median price has not been calculated.Yarra & surrounds
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Abbotsford
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Alphington
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Burnley
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Carlton North
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Clifton Hill
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Collingwood
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Cremorne
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East Melbourne
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Fitzroy
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Fitzroy North
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Princes Hill
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Richmond
Median days on market
Source: Cotality, 01/04/2025 - 31/03/2026Yarra
Rental yield
Source: Cotality, 01/04/2025 - 31/03/2026Yarra
Current population
Source: ABS Census 2021 DataYarra
- Houses
- Units
Richmond remains a tightly held suburb, with residents staying for an average of 17 years¹. What factors do you believe contribute to this longterm appeal?
Strong hold rates across Richmond continue to be driven by sustained buyer demand. Buyers remain drawn to the suburb’s inner-city lifestyle and connectivity, with close proximity to the CBD, public transport, dining precincts, retail amenity and established green spaces.
Metropolitan Melbourne’s vacancy rate is sitting at 1.6%². East Melbourne is slightly tighter at 1.4%². What does this rental demand mean for investors?
East Melbourne’s high rental population reflects its position as one of Melbourne’s most secure and consistent rental markets. Proximity to the CBD, hospitals, universities and sports precincts attracts professionals, medical staff and international renters, delivering reliable tenancy turnover, minimal vacancy risk and resilient rental returns.
Ownership
Source: ABS Census 2021 DataYarra
- Own
- 20%
- Purchasing
- 24%
- Rent
- 53%
- Other
- 3%
- Own
- Purchasing
- Rent
- Other
Dwelling type
Source: ABS Census 2021 DataYarra
- House
- 12%
- Semi detached
- 38%
- Unit / apartment
- 50%
- House
- Semi detached
- Unit / apartment
What does the property market in FY27 and beyond look like for Richmond and its surrounding suburbs?
A growing supply imbalance should support long-term values. Development has slowed due to construction costs, labour constraints and feasibility challenges. Many approved projects have not progressed to construction, limiting new supply. As demand for inner-city living strengthens, that shortage is expected to support both pricing and rental growth over the medium to long term.
Fast Five with Jodie McCarthy
Favourite street
Richmond Terrace, from Punt Road to the top of Richmond Hill, with city views and some of the suburb’s finest period homes.
Local secret
Solid Gold for great coffee and brunches.
Memorable sale
A Richmond auction on a 40-degree day, that ran nearly an hour with $1,000 bids.
Design focus
Wellness rooms such as pilates studios, gyms, saunas and the occasional golf simulator.
One to watch
North-east Richmond behind Victoria Gardens. Young couples and families are moving in fast.
