House and unit prices across Victoria have risen for a second consecutive quarter as interest rate cuts, climbing wages and easing living costs drive renewed market confidence.
Quarterly median data from the Real Estate Institute of Victoria (REIV) has shown that in the three-month period to 30th June (Q2 2025), house prices climbed 0.4 percent and units climbed 1.3 percent compared to the previous quarter. In regional Victoria, houses rose 2.6 percent and units rose 3.1 percent.
Toorak, a premium Melbourne suburb, led metropolitan growth in Q2, with houses climbing 36.5 percent to $4,249,000 and apartments rising 8.2 percent to $975,000. Fellow Stonnington suburbs Glen Iris ($2,675,000), Malvern East ($2,424,000) and South Yarra ($2,100,000) all averaged 20 percent growth.
Quarterly growth was also led by Melbourne’s outer suburbs, including Frankston (9 percent up at $815,000) and Frankston South (12.8 percent up at $1,300,000) at the base of the Mornington Peninsula, Epping (up 8.7 percent to $750,000) in the north, and Rockbank (up 8.8 percent to $640,000) in the west. Many of these suburbs are the focus of rapid infrastructure growth and remain affordable despite rising prices.
In regional Victoria, houses in Greater Mildura saw 3.9 percent quarterly and 11.3 percent annual price growth, with the town of Merbein ($400,000) showing a 13.4 percent quarterly increase and 29 percent annual growth.
Greater Bendigo is another region that has enjoyed quarterly and annual growth reaching a median house price of $580,500, with 20 of Bendigo’s 27 suburbs climbing quarter-on-quarter.
Despite two consecutive growth quarters, annual price movement across the state has remained flat or slightly fallen below June 2024 values, with metro houses down 0.6 percent and regional houses down 0.8 percent.
REIV Interim CEO Jacob Caine said this quarter’s medians indicate improving economic conditions and a case for both buyer and seller optimism.
“Buyers and sellers across the state appear to be cautiously confident as cash rate cuts, annual wages growth and signs of easing living costs drive another quarter of widespread but modest growth. In addition, the market is seeing encouraging signs that the supply of new residential housing in Victoria appears to be outpacing other states,” said Mr Caine.
“It’s pleasing to see that throughout the first half of 2025, transaction activity has held strong and plenty of buying options exist across Victoria for all budgets and lifestyles.”
Media Contact: media@reiv.com.au - 03 9205 6607