(October 2025 Blog) Melbourne’s property market ripe with opportunities for investors
After a period of uncertainty, signs are emerging that Melbourne’s property market is turning a corner, creating conditions that savvy investors can take advantage of.
Shifts in investor behaviour and stabilising market dynamics are opening up opportunities to secure properties with genuine long-term growth potential.
Investor exodus creates opportunities
The national investment landscape is evolving. Research by the Property Investment Professionals of Australia (PIPA) shows that 16.7% of investors sold at least one property in the past year – up from 14.1% last year and 12.1% in 2023.
This represents the highest rate of investor sales since PIPA began tracking the data in 2022.
Rising holding costs, regulatory uncertainty and the threat of federal tax reforms have contributed to the sell-off. As investors exit, rental supply is shrinking, putting pressure on tenants and driving up rents. For those looking to enter the market, this tightening opens the door to secure properties with strong yields and consistent demand.
Despite the broader national trend, investor sentiment towards Melbourne remains robust. The PIPA survey found that 41% of respondents named Melbourne as the top investment destination for 2025, up sharply from 26.3% last year.
“This surge reflects renewed confidence in the city’s long-term growth prospects and relative affordability compared to other capitals,” said PIPA Chair Nicola McDougall.
Melbourne market stabilises with more profit-making sales
The improving investment outlook is supported by stabilisation across Melbourne’s market.
According to Cotality, the proportion of sales making a profit increased to 89.4% in the June 2025 quarter, up from 88.7% in the March quarter.
While some regions, such as Stonnington and Moonee Valley, saw a rise in loss-making sales, others have seen much more positive results. In Yarra, for example, the number of profitable resales climbed from 72.6% to 79.2%, and in Whittlesea, from 95.3% to 98.1%.
These localised shifts reinforce the importance of suburb-level insights. Understanding which areas are trending upwards helps investors make better-informed decisions and avoid common pitfalls.
Working with a buyer’s agent can provide tailored guidance, ensuring you target suburbs with strong capital growth potential and solid resale performance.
New subdivision rules unlock development potential
Victoria’s new subdivision rules are also opening doors for property investors. From mid-October, fast-tracked VicSmart approvals will allow homeowners to build a second dwelling or subdivide their block in just 10 business days.
The streamlined process reduces fees, shortens timelines and encourages development in established suburbs.
For investors, this opens up a range of new possibilities, including dual occupancy projects, additional rental income, or longer-term redevelopment. In short, properties that were once limited by planning constraints may now carry significant untapped potential.
Shrinking listings make timing critical
While opportunities abound, the market is not without challenges. Total listings across Australia declined 4.2% between August 2024 and 2025, according to SQM Research. This was driven by significant drops in Melbourne (-4.8%), Brisbane (-11.6%), Darwin (-36.9%) and Hobart (-5.5%).
This ongoing shortage suggests many sellers remain on the sidelines, perhaps waiting for interest rate cuts to lift buyer budgets. The result? Fewer listings, more competition and greater pressure on well-priced properties.
This is where a buyer’s agent becomes invaluable. Using networks and market insight, we can identify opportunities before they hit the mainstream market and help you act quickly on properties with genuine potential. This can ensure you are well-positioned to benefit from Melbourne’s growing market.
As an expert buyer’s agency, A Game Property Advisory can help you secure a quality property at a great price. Get in touch with Jim by calling 0422 446 170 or emailing jim@agameadvisory.com.au.