Is the Melbourne Property Market Really Back? Not So Fast…

Scheduled Auctions
1498
Reported Auctions
481
Total Sold
417
Total Passed In
64
Clearance Rate
87%

Scheduled Auctions
1364
Reported Auctions
942
Total Sold
601
Total Passed In
220
Clearance Rate
64%

After a period of uncertainty, whispers are starting to circle about a revival in Melbourne’s property market. Headlines are growing cautiously optimistic, agents are talking up inspections, and there’s a sense that things might be turning a corner. But before we declare a full blown comeback, it’s worth taking a closer look at whether the market is truly ready to fire again, especially when it comes to the more neglected corners like apartments and unrenovated homes.

Yes, interest is creeping back. But no, I don’t believe we’ll see a stampede of investors or homebuyers charging back in, at least not yet.

The Apartment Market: Still in the Shadows

Apartments in Melbourne have long struggled to regain their shine post lockdowns. Once a popular choice for investors and first-home buyers alike, they’ve become a tougher sell. Rental returns have tightened, and with rising insurance premiums, body corporate fees, and vacancy fears still lingering, it’s no wonder many investors are sitting on their hands. Add to that concerns about oversupply in certain pockets and you’ve got a segment of the market that’s still deeply misunderstood and largely avoided.

Unrenovated Homes: Too Many Unknowns

Then there are the classic fixer uppers, the charming but tired homes that once sparked bidding wars from would-be renovators. In today’s market, they’re being overlooked. Why? Because renovating right now feels like walking into a financial minefield. Labour shortages, skyrocketing material costs, and shifting timelines have made the idea of “just doing a reno” far more stressful and expensive than it used to be. Many buyers are steering clear unless the property is turnkey.

The Landlord Dilemma

Even traditional investment properties aren’t the sure bet they once were. Being a landlord in Victoria has become more complex and costly, with new regulations and compliance requirements continuing to pile on. Many property owners are questioning whether the returns justify the hassle, especially in a high cost environment. This fear and hesitation are keeping investor numbers lower than what a recovering market would usually expect.

What Needs to Change?

For the market to truly rebound across all segments, we need more certainty. Certainty in renovation costs, regulatory stability for landlords, and a rebalancing of supply and demand particularly in the apartment space. Until then, we might see growth at the top end or in select suburbs, but the broader market revival (especially in the overlooked sectors) is likely to be slower and more cautious than some would hope.

So yes, there are signs of life. But don’t expect a flood just yet.

It’s still a market for the brave and the well informed.