“June Market Update: Property Growth Builds as Rate Cuts Take Effect”
Hi everyone, I’m Jason Mudford from OBrien Real Estate with the June property news for 2025.
Australia’s housing market continues to strengthen, with the latest Cotality Home Value Index reporting a 0.5% rise in Melbourne dwelling values for the month of June, the fifth straight month of growth. This brings Melbourne’s quarterly growth to 1.1%, with signs of renewed market confidence following back-to-back interest rate cuts in February and May. Nationally, values increased by 0.6% for the month and 1.4% for the quarter.
Across Melbourne, the market is displaying steady, broad-based growth. Outer and middle-ring suburbs remain popular among families and upgraders seeking space and affordability. The city’s median dwelling value now sits just under $797,000, as confidence returns to the marketplace thanks to falling rates and a competitive, low-stock environment.
Auction activity remained strong through June, with clearance rates holding around the mid-60% range, slightly above the decade average. This, paired with new listings tracking well below historical norms, has helped sellers retain an edge while still offering opportunities for committed buyers.
Regional Victoria continued to hold its ground, posting a 0.5% monthly increase. Lifestyle destinations within easy reach of Melbourne are still in demand, although affordability and borrowing constraints are tempering the pace of growth. Over the June quarter, regional Victoria grew by 1.4%, slightly outpacing metropolitan Melbourne.
On the rental front, the market has cooled slightly. Melbourne recorded a 0.7% annual rise in house rents and a 1.8% annual rise for units. While these figures remain modest compared to other capitals such as Perth and Brisbane, the softer rental growth in Melbourne may appeal to renters struggling with affordability pressures.
The national rental index rose just 1.3% for the June quarter—the lowest second-quarter rise since 2020—despite vacancy rates remaining below 1.5% in most markets. This signals that affordability, rather than supply, is driving rental trends.
Looking ahead, expectations of further interest rate cuts and a stable labour market are setting the stage for continued moderate growth into the second half of the year. With the next RBA decision due on Tuesday July 8 at 2.30pm, many economists anticipate another 25-basis-point cut, which could further improve consumer confidence and borrowing power.
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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