Melbourne predicted as hotspot for 2025,
Despite Melbourne’s property market declining in price throughout 2024, a new report suggests the city will become a prime investment hub.
Hotspotting, conducted by Ryder Property Research, forecasts that Melbourne will experience a rebound in 2025.
This prediction comes from the Top 10 National Best Buys report, which evaluates regions based on infrastructure and employment.
The report also considers urban renewal, lifestyle factors, and migration trends when making its projections for Melbourne.
According to Hotspotting director Terry Ryder, Melbourne faced challenges in 2023 and 2024 but is ready for a comeback in 2025.
Ryder further explains that Melbourne’s price gap with Sydney, coupled with strong population growth, makes it an attractive investment.
Despite high state taxes and ongoing governance issues, Melbourne remains a promising prospect for investors in the near future.
Melbourne’s median house price is projected to increase by 3 to 5 per cent as it begins to catch up.
According to Domain’s chief of research and economics, Dr Nicola Powell, this growth phase is expected to unfold.
She explains that when the next property price cycle occurs, Melbourne is likely to outperform other capital cities.
This is due to the city going through a catch-up growth phase, which will boost its property market.
Dr Powell also mentions that there are buyers in Melbourne currently taking advantage of the growing value in the market.
However, she notes that the massive return of investors will happen once better property price growth prospects emerge.
At the moment, these growth prospects aren’t quite there yet, but they are expected to develop soon.
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The report identifies key investor hotspots in Victoria, including the metro and southeast regions, as the main areas for growth.
This growth potential is largely attributed to the increasing affordability of units and houses, according to Tim Graham, Hotspotting’s general manager.
He further explains that demand for well-located attached dwellings in Melbourne is driving rent growth, price increases, and new dwelling approvals.
Tim Graham also highlights that the City of Casey remains a strong market, showing steady long-term growth and attracting first-home buyers.
However, Melbourne is not the only hotspot for investors in 2025. The Hotspotting report also predicts Darwin will emerge as a significant investment location.
This is due to its more affordable properties and high rental yields, which make it an attractive option for investors.
Ryder explains that Darwin’s property market is undergoing a resurgence, particularly in suburbs like Zuccoli, Gunn, Bellamack, Durack, and Woodroffe.
The Hotspotting 2025 best buys list features several locations across Australia, including:
Victoria: City of Melbourne, City of Casey, City of Ballarat, Albury/Wodonga.
New South Wales: City of Sydney, Tamworth, Albury/Wodonga.
Queensland: Sunshine Coast, Redland City.
Northern Territory: Darwin.
Tasmania: Launceston.
