Key learnings from the last 12 months

Whether you are looking at changes in consumer confidence levels; variations in the Reserve Bank’s official interest rate policies; the regular revisions to first home buyer assistance and taxation policies by the State and Federal Governments; just for starters…there are a lot of different inputs that can have an impact on our local property market from one month to the next.

Having said that, though, when you look back at what has happened over the past year or so there are a couple of key learnings that anyone should pay attention to if they plan on making a move in 2026. Here are some of the key points I noticed.

Firstly, you should never underestimate the underlying resilience of our property market. Following some challenging conditions in 2024, Australian property values rebounded significantly last year, with Perth and Brisbane leading the charge, while Sydney and Melbourne saw steadier gains. In our part of Melbourne, data from PropTrack suggests that median house prices rose by 13-14 per cent over the last twelve months while units picked up by 11-12 per cent.

Whilst the figures for the last quarter of 2025 suggest that this growth slowed as talk of higher inflation figures and possible interest rate rises increased, this annual growth rate is good news for local homeowners.

Secondly, the continuing shortage of available rental stock has proven to be challenging for Melbourne’s renters, but adds to the positive news for investors and those who are looking to become property investors in the near future. The data says that lending to investors increased last year, which is no surprise in this climate.

With this in mind, affordability continues to be an issue with Increased prices outpacing income growth. As many local buyers will tell you, entry-level properties are getting harder to find, even with government schemes like the 5% deposit scheme in place.

Perhaps the strongest message you can take from these trends is that waiting for more favourable conditions is not a smart strategy. As you can see, anyone who got to the end of 2024 and thought that they’d hold off while the market settles are probably now more than 10 per cent worse off!

Remember, if you could use some experienced advice about your own property or your plans for the year ahead, the team at Barry Plant Thomastown is ready and able to assist. Give us a call this week on 9466 3233.

Cheers,

Con Constantinou

Barry Plant Thomastown