There is clear evidence the market for established property in Port Melbourne is gathering pace. Weekly clearance rates have strengthened, supported by low supply. Over the course of 2025, the Federal Election has been decided, the RBA has started to cut the cash rate, and the Victorian Government has pressed ahead with planning reform to address a chronic housing supply.

Over the last 5 years, house prices in Port have seen a 12% increase in median value, while units have seen approximately half that rate of increase. Coming off such a sluggish base the pace of growth is poised to increase. First home buyer incentives will ignite the bottom end of the market.

Inflation has slowed, and the big 4 banks are tipping property prices will recover the 2021 peak by next year. Economists expect mortgage rates to fall, as moderating economic conditions and inflation see the banks trimming rates.

RENTAL YIELDS have really improved over the last 5 years as rental growth outpaced capital growth. The middle rental value of houses and units is now $750 a week in Port Melbourne.

The short term outlook is for faster Capital appreciation and steadying rental growth. The Port Melbourne lifestyle appeal ensures we will remain one of Victoria’s premier suburbs prized for its heritage, lovely beaches and parks, new schools and infrastructure, to underpin inner city convenience.

The premium value of inner Bayside real estate cannot be overstated. Due to the scarcity, waterfront and nearby properties in close to the CBD remain exceptionally limited in supply.

In the longer term the Fisherman’s Bend and Montague precincts will supercharge population growth. Preliminary data reveals a 54% decline in Build to Sell apartments while Build to Rent sector has surged 378% (Charter Keck). Could this be the face of the next phase of growth in Port Melbourne.