City Beat April 2025: It's official, Melbourne is back
The tide has well and truly turned in the Melbourne property market—and this time, it’s all about units.
While every other capital city in Australia experienced strong property price growth over the last 18 months or so, Melbourne lagged behind.
While the declines were modest—house values fell by -2.1 per cent in 2024 and unit values dropped by -3.2 per cent — the city’s flat performance puzzled many of those in the industry.
But the momentum is shifting.
A cash rate cut in February has helped restore confidence, and Melbourne’s relative affordability has become a key attraction. Having slipped to sixth place in capital city affordability rankings—now trailing Brisbane, Perth, and Adelaide—buyers and investors alike are beginning to view Melbourne as excellent value.
According to the Home Value Index by Cotality (formerly CoreLogic), unit values rose 0.4 per cenr in April, building on gains of 0.4 per cent in March and 0.2 per cent in February. Units are currently outperforming houses, which recorded a more modest 0.1 per cent increase in April.
Melbourne’s median unit value now sits at $610,000.
With further interest rate cuts on the horizon, many analysts believe Melbourne’s property market is poised for steady growth in the medium to long term as it begins to catch up with other capital cities.
What happened in Melbourne’s off the plan apartment market in April?
The renewed interest in Melbourne's unit market has spurred on developers in the off the plan apartment space.
Design-focused developer Milieu appointed Brady Constructions to deliver the first stage of its Elsternwick Gardens neighbourhood — a rare garden-integrated apartment community on the former ABC Studios site on Gordon Street.
Brady will begin excavation on the large 11,740 sqm site, which neighbours the heritage-listed Rippon Lea Estate and its historic gardens, in the coming months.
Milieu has worked closely with Woods Bagot, K.P.D.O., and Oculus to design buildings that integrate directly with the neighbouring gardens. Residents will have private access to the heritage grounds, which will also be maintained by Rippon Lea’s gardeners.
The fossil fuel-free apartments will feature renewable energy sources, EV charging, and water harvesting, as well as on-site wellness and hospitality offerings.
Milieu's Managing Director, Michael McCormack, called it a “once-in-a-lifetime project… immersed in nature with a truly unique community.”
Read more: Milieu appoints builder for Elsternwick Gardens neighbourhood
April saw the rare launch of a new apartment development—something that has been few and far between in Melbourne over the past 12 months. Even more notable, the project is located in the heart of Balwyn Village.
Supermarket giant Coles has teamed up with developer Dimas Property Group for White & Weston—a boutique apartment project above a full-line Coles supermarket on Whitehorse Road.
Designed by Cera Stribley with landscaping by Jack Merlo, White & Weston comprises just 45 two, three and four-bedroom residences in a three-level building. Residents will enjoy views over Balwyn Park and energy-efficient designs aligned with Sustainability Victoria’s Whole of Home Initiative.
With rooftop gardens, Miele appliances, Signorino stone finishes, and private outdoor spaces, the project targets empty nesters, professional singles, and young couples seeking convenience, luxury, and green living.
Read more: Coles and Dimas Property Group launch White & Weston in Balwyn Village
Sunkin took another major step in its ambitious Highett Common masterplan in April, topping out one of the latest buildings in the new 9.3-hectare community next to Highett Station.
They will be welcoming residents in around six months time to the North Lane building. At the same time the first building is completed, so will the brand new one-hectare park.
The Townhomes Collection and Mews Collection are also progressing, with basement works for the latter already underway. Select residences are currently available with stamp duty savings and a $12,000 furniture and styling package by Coco Republic, offering added value for early buyers.
Read more: Sunkin tops out next Highett Common building as move-in date approaches
April marked the completion of one of most unique new developments to ever be delivered in Australia.
In a national first, C. Street Projects completed Australia’s first certified Passivhaus homes in Hawthorn—a trio of three-bedroom townhomes designed to be continuously ventilated with fresh, filtered air, significantly reducing allergens and pollutants in the home.
The turnkey homes maintain a year-round temperature of 23 degrees while using 70 per cent less energy than typical Victorian homes. With triple-glazed windows, straw panel insulation, EV chargers, solar, and battery storage, the homes operate at net zero energy and represent the new benchmark for sustainable living.
Kin Seng Choo and Michael Robertson, the duo behind C. Street Projects, have spent the last five years developing a method and design approach to scaling certified Passivhaus projects suited to the unique challenges of Australian conditions.
“Australians should have access to sustainable homes built to global best practice," Choo says.
"Turnkey homes certified to the Passivhaus standard provide that independent verification and surety of quality."
Jellis Craig Projects Director, Stephen Bowtell, is marketing ECHO Hawthorn.
Read more: First certified Passivhaus homes in Australia complete in Hawthorn
