Multiple factors are putting momentum back into the market

After a few difficult years marked by rising construction costs, stalled feasibilities, and nervous buyers, conditions are starting to improve for Melbourne’s medium and high density property sector. Three rate cuts this year, stronger lending appetite, and steady migration are putting some momentum back into the market.

Victoria added more than 132,000 new residents in 2024, claiming almost a third of Australia’s population growth. The state’s population has now surpassed seven million, driven by overseas migration, a lift in natural increase, and fewer people leaving for other states. This level of growth is driving demand for housing, from rentals to first homes and investment properties.