Melbourne's real estate prices in the coming years are attracting attention from foreign investors. One of the key factors influencing property prices is population growth, with approximately 167,000 new people arriving in 2023, mainly from overseas. This creates high demand for housing, especially as housing supply is decreasing. Additionally, rising interest rates to control inflation have increased pressure on prices and consumer affordability. The rental market is also active, especially for investors looking for stable income. Potential buyers need to be aware of taxes and associated costs when deciding to invest in Melbourne’s real estate.

Factors Affecting Melbourne Property Prices

Two main factors impact property prices in Melbourne: Population Growth and Housing Supply.

• Population Growth: According to data from the Australian Bureau of Statistics (ABS), Melbourne’s population grew by around 167,000 people in 2023, making it the fastest-growing city in terms of population. This growth is primarily driven by international immigration, due to Australia's social welfare policies like free healthcare and education, making the country an attractive destination for immigrants. This has increased the demand for housing in the real estate market.

• Housing Supply: ABS data shows a monthly decline in the number of building permits approved, from 12,963 in January 2024 to 12,628 in April. The rapid population growth from immigration has raised concerns about a housing shortage, driving activity in the real estate market and impacting prices.

Furthermore, to curb inflation, the Australian government raised the cash rate to 4.35% in 2022, leading to significant fluctuations in Melbourne’s property prices and increasing the mortgage repayment burden.

Types of Properties in Melbourne and Reference Prices

Melbourne has three main types of properties, each with different price ranges:

Real Estate Price Trends in Melbourne for 2025

According to a report by CoreLogic, the average property price in Australia increased by 8.1% in 2023, rising from AUD 708,613 to AUD 757,746. Specifically in Melbourne, the average price reached AUD 780,457 in 2023, marking a 3.5% increase compared to 2022. The Melbourne real estate market maintained steady growth throughout 2023, with only a slight decline in November and December.

By the end of Q1 2024, CoreLogic's monthly report indicated that the average property price in Melbourne reached AUD 783,261 in April, showing a slight fluctuation compared to the end of the previous year. This suggests that the Melbourne real estate market is gradually stabilizing, with prices expected to remain steady or experience slight growth in 2024, unless impacted by major external factors.

Important Considerations When Buying Property in Melbourne

Before purchasing property, there are several important factors to consider, such as taxes and costs, approval requirements from the Foreign Investment Review Board (FIRB), and the process of securing financing.

Non-residents must obtain approval from the Foreign Investment Review Board (FIRB) before purchasing property, a process that typically takes around 30 days. Additionally, it is advisable to consider financing options in Australia or Taiwan. Australian banks have stricter lending criteria for foreign buyers, so obtaining financing in Taiwan and bringing the funds to Australia for investment may be a viable solution.

Entre Shield Property – Leading Investment Partner in Melbourne

Entre Shield Property is a real estate investment company established and developed in Melbourne CBD, Australia, for over 10 years. We relocated our headquarters to Prahran in April 2022.We believe in “Trust, Reliability, and Peace of Mind” while providing comprehensive real estate investment services to our clients. As a proud member of REIV, we specialize in property sales, rental management, commercial sales, and development consulting.

With extensive expertise and in-depth market knowledge, our team consistently exceeds client expectations and receives numerous referrals from investors. We offer multilingual services, including English, Mandarin, Cantonese, and Bahasa, and are ready to assist you in finding the ideal property to invest in and build a brighter future.