Melbourne Property Market: Unit Market Gains Momentum
The Melbourne unit market is experiencing strong growth in 2025, with rising prices and renewed buyer demand across inner-city and established suburbs. After a period of softer performance, the market is now showing clear momentum, driven by affordability, ongoing population growth, and significant infrastructure investment.
For investors and owners, this is an ideal time to review your property's current value and ensure you're not missing out on equity gains as the market shifts.
Unit market trends and leading suburbs
Recent forecasts predict the Melbourne unit market will grow by 3.6% in 2025, with even stronger gains expected into 2026. Transaction volumes are highest in suburbs offering a mix of affordability, amenity, and proximity to employment.
High-activity suburbs include:
Southbank and CBD-Core: Central locations with strong investor and owner-occupier appeal
Huntingdale, Clayton, and Oakleigh: Bayside suburbs benefiting from Monash University, hospitals, and transport access
Docklands and Richmond: Inner-city lifestyle precincts attracting both local and interstate buyers
Vacancy rates remain low across Melbourne, and rents continue to rise, making units an attractive choice for both investors seeking yield and first-home buyers looking for affordability.
Why units are outperforming houses
Several factors explain the unit market's strong performance compared to detached houses:
Affordability
Units remain significantly more affordable than houses, offering a realistic entry point for first-home buyers and portfolio investors in a market where median house prices continue to climb.
Population growth
Melbourne's population is rising, fueling demand for both rental and owner-occupied properties. High-density corridors near transport, universities, and employment hubs are absorbing this demand quickly.
Infrastructure development
Ongoing metro, tram, and road upgrades—especially in Bayside, inner-city, and growth corridors—are making well-located units more desirable to tenants and buyers alike.
Investor demand
Units offer lower purchase prices, easier management, and stable rental yields, making them a preferred asset class for investors in 2025.
Why accurate property valuations matter now
With the market shifting quickly, property owners should consider obtaining a professional valuation from a registered valuer to understand their asset's current worth. An up-to-date valuation provides clarity for refinancing, selling, tax planning, and investment decisions.
Key reasons to get a valuation:
Refinancing and equity access: Know your true equity position to unlock borrowing capacity
Pre-sale pricing strategy: A certified valuation supports realistic pricing and strengthens buyer confidence
CGT and tax planning: Accurate valuations are essential for capital gains tax calculations when selling or changing property use
SMSF compliance: Trustees must report assets at market value; independent valuations meet ATO requirements
For investors managing multiple properties or planning to sell in a rising market, a professional valuation from a certified property valuer in Melbourne ensures you're not leaving value on the table or making decisions based on outdated estimates.
Valuation services for Melbourne unit owners
Whether you own a unit in Southbank, Huntingdale, Docklands, or any Melbourne suburb, our certified property valuers provide tailored, API-accredited reports for a range of purposes:
Pre-sale valuations to support pricing strategy
Pre-purchase valuations to ensure you don't overpay
CGT valuations for accurate tax reporting when selling or changing use
Stamp duty valuations for transfers, gifts, or family transactions
SMSF valuations to meet annual reporting and audit requirements
Our independent valuers specialise in residential property across Melbourne and understand the local factors like estate stage, amenity, transport, and supply and that shape unit values in today's market.
