Find Finance & Mortgage Brokers in Melbourne

Find Clarity in the Melbourne Loan Market Melbourne is Australia’s second-largest city and Victoria’s capital, positioned on Port Phillip Bay with the Yarra River flowing through its heart. The city is renowned for its culture, sports, dining, and European character with extensive Victorian-era architecture. Melbourne’s property market has experienced subdued performance in 2024 with median house prices growing only 0.6% and units 1.9%, significantly underperforming Brisbane, Perth, and Adelaide due to stricter tenancy regulations, increased taxation (land tax threshold dropped from $300k to $50k), and Victoria’s soaring state debt of $126B creating investor caution. However, 2025 has brought four consecutive months of price growth marking a notable turnaround, with the median dwelling value at $805,880 still 3.4% below the March 2022 peak, presenting countercyclical opportunities for strategic investors.

The city is experiencing unprecedented population growth, adding 184,000 residents in the year to March 2024 (highest of any state), with forecasts predicting population will reach 9 million by 2050, well above original projections. This population surge is driven by overseas migration and, for the first time since 2020, positive interstate migration. Housing stock ranges from period homes in established suburbs like Toorak and Brighton to modern apartments in Docklands and Southbank, family homes in growth corridors like Wyndham Vale and Craigieburn, and townhouses in middle-ring gentrifying suburbs. The market faces critical supply constraints with dwelling construction at 10-year lows (63,700 under construction, 11% below last year), new approvals 14% below 10-year average, and 2024 seeing the lowest housing completions in a decade despite record population growth.

The Victorian government has implemented policy responses including 12-month stamp duty reduction for off-the-plan units/townhouses/apartments (from October 2024) and streamlined planning for 50 activity centers around transport for multi-storey development. The rental market is extremely tight with vacancy rates at 1.8%, median rents up 4.1% annually, and gross rental yields at 3.7% improving from 3.5% previously. Melbourne offers strong long-term fundamentals with diversified economy (finance, education, healthcare, manufacturing), world-class universities attracting international students, and lifestyle appeal including Australia’s sports capital status. Forecasts predict Melbourne will deliver highest dollar-value capital growth over the next decade due to reversion to mean, relative affordability versus Sydney (currently 13% undervalued), and stronger fundamentals than faster-growing but smaller markets.