Spring is always prime time for Melbourne property, but this year has a different buzz. Auction clearance rates are back above 70% and prices are gathering steam. Anyone buying in Bayside or the Inner East is stepping into one of the hottest markets we’ve seen in years. Whether you’re upsizing, hunting for that perfect family home, or eyeing a smart investment, here’s what you need to know…
The Market Right Now
- Auctions are pumping. According to the latest figures from Domain, Melbourne’s clearance rate has hovered around 70% lately, about 10% higher than this time last year. REIV even clocked an 84% rate for the week ending 14 September, with the median house price at auction now sitting around $1.3 million.
- House prices are edging up. After a softer 2024, CoreLogic and PropTrack are tipping 3–6% growth in the Melbourne housing market for 2025.
- Unit Market Heating Up. The median Melbourne unit price sits around $622,000. While traditionally in Melbourne, apartment growth has been slower than houses, Bayside and Inner East apartments close to transport and amenities are expected to outperform the wider city.
Bayside Buzz
When you think of Melbourne coastal suburbs with their beach boxes and sandy foreshore, top of mind are Brighton, Sandringham, Hampton and Beaumaris. These suburbs are in demand with families and lifestyle seekers, and you don’t have to be a rocket scientist to work out why.
- High-end competition: Renovated four-bedroom family homes are drawing big auction crowds and often smashing reserves. Turnkey homes are topping buyers’ wish lists.
- Prestige push: Brighton’s median is now over $3 million and rising. This is due to buyers trading up in this premium bayside location.
- Downsizer appeal: Modern townhouses and luxury apartments near the beach are attracting strong competition from downsizers seeking a low-maintenance lifestyle.
Prediction: Expect Bayside house prices to climb five to seven percent through 2025–26, with Brighton and Hampton leading the charge. Entry-level units and townhouses near transport will also attract strong demand.
Inner East Market Outlook
Hawthorn, Kew, Camberwell and Balwyn are as resilient as ever, particularly for character homes in tree-lined streets and those coveted school zones.
- Auction depth: Auctions can draw up to four bidders, with stronger competition for properties near elite schools.
- School-zones driving demand: The Balwyn High School catchment in addition to the abundance of private schools drive intense buyer competition and premium prices.
- Land & character: Period homes on larger blocks are highly sought after, with buyers willing to pay significant premiums for land and location
Prediction: The Inner East is expected to record six to eight percent house price growth by the end of 2026, with Kew and Hawthorn among the top performers. Units in these suburbs are steadier but likely to see three to five percent growth, particularly in boutique developments.
Tips for Buyers
- Move fast. Waiting could mean paying more come summer or 2026.
- Be auction-ready. Have your pre-approval paperwork sorted and a solid bidding plan. Even a buyer’s agent can be the edge you need.
- Think beyond renovated houses. While houses are leading the growth, quality units and townhouses in both Bayside and Inner East remain good value compared to standalone homes. And slightly dated renovated homes with good bones, so they will only need a cosmetic refresh, will become the next in line to attract the current bidders being priced out of newly renovated homes.
- Target lifestyle pockets. Properties close to transport, schools, and lifestyle amenities will continue to command a premium.
The Bottom Line
Spring 2025 is shaping up to be a turning point for Melbourne’s property market, particularly in Bayside and the Inner East. With built-up demand due to a lengthy period of low stock, and supply improving but still constrained, buyers should expect competition, especially at auctions, but also solid long-term growth if they secure the right property at the right price now.
If you need help finding the right home, contact me.