“October Market Update 2025 at a glance”
Here’s your October property news, a fast wrap on prices, stock, rentals and sentiment across metropolitan Melbourne and Regional Victoria.
Fast Home Price Facts
- Metro Home values: up 0.9% month on month; the median units and houses combined now sits at $818,975 for Metro Melbourne. Houses jumped just over $20,000 in October.
- Regional Victoria values: up 0.8% month on month, with the median at $602,646 for units and houses.
Rental Pulse
- The National vacancy rate, sits at 1.4%. National rents rose 0.5% for the month, the fastest since May 2024.
- Annual rent growth for Melbourne; units +2.2% year on year and houses +1.6%. Melbourne and Regional Victoria rents look set to re-accelerate over the coming year.
Market Sentiment
- Sellers: Can proceed with good confident, particularly whilst choice is still constrained. Total stock remains -9.4% y/y (realestate.com.au).
- Buyers: Expect strong competition on A-grade stock. Auction Clearance for October was at 67%.
- Rental Providers: The re-accelerating of rents will help keep yields for investors. Melbourne vacancy sits higher than peers but still sub‑2%.
- Renters: Renters face competitive opens in well‑served suburbs but may find relief in adjacent pockets just beyond the hot spots.
- Building Costs: The Cordell Construction cost report for the September quarter rose 0.6% taking build costs to 31% higher over the past 5 years. Margins pressures for builders and developers is constraining activity and housing supply.
- Lending: The RBA reported lending for investors is rising at the fastest pace since June 2015, further acceleration could see a tightening in lending to investors.
- Interest Rates and Inflation: The US market just dropped its interest rates again, however the same won’t happen here, particularly when inflation rose to 3.2%. The August RBA cut will be the last we see in 2025 and no cuts are likely in 2026 if inflation doesn’t swiftly move back within the 2 to 3% zone.
Remember, the information provided is of a general nature – always seek independent legal, financial, taxation or other advice in relation to your unique circumstances.
- Free Sales Price Report: https://www.obrienrealestate.com.au/property-report/
- Free Rental Report: https://www.obrienrealestate.com.au/rental-report/
- View our Annual Axis Report: https://www.obrienrealestate.com.au/axis/
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