In 2024, Melbourne's median house prices experienced a varied year, with overall figures showing modest declines or stagnation due to high interest rates, ending the year with a median around $894,500 to $913,000, depending on the source, though some luxury suburbs saw significant growth, while affordable segments showed resilience, with units performing better than houses by year-end, setting up for a potential recovery in 2025 driven by affordability and anticipated rate cuts, notes Urban Property Australia, realestate.com.au and Domain, as reported by.
But in 2025, there will be much greater house price growth consistency across the country. Melbourne houses will rise the most by 6.5% followed by Canberra at 6.0%, but even the lowest, Brisbane will still rise by 5.1%.
Property prices expected to increase, but growth to slow
REA Group senior economist Anne Flaherty predicts home prices will head to new highs in 2026, but the pace of growth is expected to slow.
To buy a $650,000 house in Australia, you generally need a gross annual household income between $100,000 to $140,000, with figures varying significantly by location and lender criteria, requiring a strong deposit (around $130,000 for 20%) and managing loan repayments to not exceed 30% of your income to avoid mortgage stress, often necessitating a joint income or substantial savings, as highlighted by financial experts and data from sources like Fundd, Finder, and Real Estate.
Melbourne's next boom suburbs for 2025 are focusing on affordable outer areas with improving infrastructure, including Werribee, Sunbury, Melton, Frankston, and Cranbourne, while established middle-ring suburbs like Bayswater, Ringwood, Moonee Ponds, and Essendon offer strong family appeal with gentrification and connectivity. Key drivers include new transport links (like the West Gate Tunnel), affordability, and shifting demographics, with "battler suburbs" seeing significant price jumps.
We assess them based on what 2025 is showing us.
Whether to sell your Australian house now (late 2025) or wait for 2026 depends on your goals, but the market shows strong price growth continuing into 2026, driven by potential rate cuts and low stock in many areas, making it a good time for sellers, though increased listings might offer buyers more choice later in 2025, creating a window for some, but potentially making it tougher to buy your next home if prices surge further. Selling sooner capitalizes on current strong demand and low inventory, while waiting might see prices rise more, but you'll face a potentially pricier next purchase, especially if upgrading.
Using this free income calculator, the approximate income you need to buy a $500,000 home, assuming you need a $400,000 loan, is $77,000 gross per year, excluding superannuation.
A $1 million retirement fund in Australia can last anywhere from under 20 years to over 30 years, heavily depending on your annual spending, investment returns, and whether you receive the Age Pension, with $40,000-$50,000/year lasting longer (30+ years) and higher spending (e.g., $60,000+/year) depleting it much faster (20-25 years), while combining with the Age Pension significantly extends its longevity.
In Australia, the middle-class income range is generally considered to be between 75% to 200% of the median income, which translates roughly to $48,000 to $130,000 annually for individuals, though figures vary by definition (personal vs. household) and year, with some placing the core middle at $90k-$140k household income, supporting a lifestyle of home ownership and family activities, but facing rising costs.
“The combination of rising land tax, new vacancy levies and ongoing tenancy reforms is creating a climate of uncertainty. Many investors are simply deciding it's no longer worth the risk or cost to hold property in the state.”
Structural damage (foundations, roof, termites) and poor location (noise, crime, bad schools) decrease property value the most, alongside significant neglect like outdated kitchens/bathrooms, peeling paint, and unapproved renovations, as these signal major costs and headaches for buyers, with factors like proximity to landfills, power plants, or high-traffic roads also causing significant drops.
Buying a Home In 2025: Everything You Need to Know
For investors balancing growth and yield, the south-east middle ring remains a standout in 2026. Bentleigh East, Clayton and Mount Waverley offer larger land components, family and student rental demand, and access to major education and employment hubs, including Monash University and key arterial roads.
Those who like to move around or travel a lot might find renting a better option, while those wanting to create roots in a single location will find buying a better choice. Think about investing in a property. Buying a home can help you gain value and build equity by making home improvements.
No, property values don't universally double every 10 years; it's a common myth, though some areas and periods see such rapid growth, while national data shows it often takes longer, around 15+ years, with significant variation by location and market conditions. While historically this rule held true for certain decades, recent data indicates it's more of a generalized guideline than a guarantee, with some markets doubling quickly and others much more slowly, or even declining.
Yes, you can likely retire at 70 with $800,000, but it depends heavily on your annual spending, investment returns, and eligibility for government support like the Age Pension, potentially supporting a modest to comfortable lifestyle, though a very high-spending one might require more capital, according to wealthlab.com.au, Toro Wealth and Frontier Financial Group. Using the "4% Rule", $800,000 could provide around $32,000/year initially, but factoring in the Age Pension and lower expenses (like no mortgage/work costs) can make it stretch further, possibly supporting a single person's $44k-$50k/year needs.
The top ten financial mistakes most people make after retirement are:
The short answer is yes, but only with disciplined planning and a clear strategy. Retiring at 60 with $300k is certainly achievable if you own your home, commit to a modest lifestyle, and manage your super and future Age Pension access wisely.
On a $100k salary in Australia, you might borrow between $330,000 and $600,000, but it highly depends on lender policies, interest rates, existing debts (car, credit cards), living expenses, and deposit size, with many lenders using serviceability buffers, suggesting figures closer to the lower end, while others might offer more if you have minimal expenses and debt. Use an online borrowing calculator from banks like NAB, CommBank, or ING for a personalized estimate.
To comfortably afford a 400k mortgage, you'll likely need an annual income between $100,000 to $125,000, depending on your specific financial situation and the terms of your mortgage.
How much do you need to earn to get a £100k mortgage? You would need to earn somewhere between £18,000 and £25,000 per year to get approved for a mortgage of £100,000. This is because mortgage lenders in the UK will cap your maximum borrowing at between 4.5 and 6 times your annual salary.
The hardest months to sell a house are typically December and January due to holidays, travel, and financial caution, with some sources also pointing to mid-winter (June/July in the Southern Hemisphere, Dec/Jan in Northern Hemisphere) because of cold weather, fewer buyers, and dull property presentation. These times see less buyer activity as people focus on celebrations and finances, leading to fewer serious offers and longer listing times.
The Six-Month Rule
For this exemption to apply, two conditions must be met. First, the property must have been your primary residence for at least three months within the 12 months before selling it. Secondly, you must not have used the property to make assessable income in any way within the 12 months before selling.
For most people seeking a real-estate upgrade or downsize, selling first may be a less risky option. However, if you're on a regular income and have enough equity in your existing home, you may be better equipped to secure the finance for your new purchase, giving you more room to move.