“Market holds steady despite election and holiday season”
Hi everyone, I’m Jason Mudford from OBrien Real Estate with the April property news for 2025.
It’s been a steady month for the property market, with values continuing to edge higher despite the usual slowdown in activity that comes with public holidays and federal elections. According to CoreLogic’s latest data, Melbourne dwelling values rose 0.2% in April, marking the third straight month of growth, and a 1.0% lift over the quarter.
However, the pace of gains has eased slightly from earlier in the year, reflecting a drop in consumer sentiment during April, which was likely influenced by the Federal Election on May 3rd, and a soft patch in auction activity over the Easter and ANZAC period. Despite these headwinds, prices are still moving in the right direction.
The median dwelling value in Melbourne for both units and houses now sits at $786,158, with home values still 5.4% below their peak from March 2022. The upper quartile of the market – particularly inner-city homes – has shown the most responsiveness to earlier interest rate cuts.
Regional Victoria continues to outperform
In line with national trends, Regional Victoria outpaced Melbourne’s monthly growth, with dwelling values rising 0.3% in April and 1.0% over the quarter. The median home price in Regional Victoria is now $576,576.
Some of the strongest annual growth in the state is being seen in areas like:
- Mildura (+9.0%)
- Colac–Corangamite (+7.1%)
- Shepparton (+4.0%)
- Glenelg–Southern Grampians (+5.6%)
While values are still 6.9% below their 2022 peak, Regional Victoria has proven to be more resilient than the metro market in recent months – a trend reminiscent of the pandemic boom period.
What’s happening with rates and inflation?
Regardless of who wins the federal election on May 3, the interest rate decision which is due on May 20, 2025 at 2:30pm has basically already been made with economists now agreeing the world has shifted so dramatically that a May rate cut is now a certainty.
The RBA has been closely watching inflation, and the latest ABS data showed annual CPI rose just 2.4% to February 2025, bringing inflation well within the RBA’s 2–3% target band.
This aligns with a recent CoreLogic statement noting that the February rate cut had a positive impact on market confidence, but its influence may now be fading slightly as buyers await further clarity on rates and post-election policy outcomes.
Rents & yields: growth slows but returns improve
Melbourne’s rental market continues to stabilise. Rents increased just 0.3% in April, and annual rent growth has now slowed to 2.0%, down from 9.4% a year earlier.
Here are the latest gross rental yields:
- Melbourne dwellings: 3.7%
- Regional Victoria dwellings: 4.3%
- Melbourne houses: 3.2% | Units: 4.9%
- Regional Vic houses: 4.2% | Units: 5.0%
While rental growth has softened, yields are at their highest in over a year, offering better returns for investors as home values rise moderately and rents hold strong. Across the country, investor interest remains robust, especially in higher-yielding regional markets.
A quieter month, but stability prevails
As expected, the April–May period saw subdued buyer and seller activity, impacted by Easter, school holidays, Anzac Day and the election. Auction volumes and new listings were at their lowest levels for this time of year since 2019, not counting COVID interruptions.
However, the underlying market remains sound. Low unemployment, tight rental supply, and interest rate stability continue to support values – even if momentum has slightly softened. With election uncertainty now behind us and more rate relief expected, the outlook remains cautiously optimistic.
Remember, the information provided is of a general nature – always seek independent legal, financial, taxation or other advice in relation to your unique circumstances.
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