Victoria’s property market revival is gaining momentum, with quarterly median prices rising for the third consecutive quarter across both metropolitan and regional areas, according to the Real Estate Institute of Victoria’s (REIV) latest data.
The REIV’s September 2025 quarter results show median house prices climbed 2.7% in metropolitan Melbourne and 2.5% in regional Victoria, while unit prices increased 2.1% and 1.4% respectively. The sustained growth points to a diverse market presenting opportunities for both sellers and value-seeking buyers.
The gains come as national consumer sentiment softens. The latest Westpac–Melbourne Institute survey fell 3.5% in October to a six-month low, though housing optimism remains high — particularly in Queensland and moderately in Victoria — with more than three-quarters of Australians expecting prices to rise over the next year.
Brighton East led metropolitan growth with a remarkable 31.8% quarterly increase, pushing its median house price to $2,598,500. It topped a diverse list that also featured premium suburbs like Surrey Hills alongside emerging areas such as Melton South.
Eight of the ten top-performing suburbs recorded new price records during the quarter – a sign that momentum is returning at both ends of the market.
Regional Victoria’s housing market continued its rebound, with the median house price climbing to $636,500, surpassing its previous peak of $624,500 set in March 2022.
Metropolitan unit and apartment prices also strengthened, particularly in outer Melbourne (up 3.4%) and middle-ring suburbs (up 2.5%), where the median auction price hit a record $804,500.
Jacob Caine (pictured), REIV Interim CEO, said the results highlight a steadily improving market environment supported by friendlier lending conditions.
“What we are seeing from these results is a Victorian property market benefitting from continued buyer-friendly conditions, headlined by August’s interest rate cut,” Caine said.
“With some uncertainty around economic conditions remaining, there is also a willingness on the part of buyers to seek out value across the breadth of the state’s diverse real estate market. This is demonstrated in the demand for regional houses and metropolitan units, which can represent more affordable options than metropolitan houses.
“This data once again demonstrates the long-term value offered by the Victorian real estate market.”
For advisers, the steady price growth and resilient property sentiment suggest a renewed window to engage both first-home and upgrading clients. With activity spreading beyond traditional premium suburbs into middle and outer Melbourne – and regional markets returning to their peak – brokers may find strong demand for competitive home loan products and refinance opportunities as market confidence builds.
Even with consumer sentiment easing, Victorians remain committed to property ownership – signalling continued lending opportunities as stability and rate expectations shape demand heading into 2026.
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