2025 Market Conditions: Is Now the Right Time to Invest in Victorian Real Estate?

June 18, 2025

Nirali Desai

Founder

ETHOS Property Group

In today’s market, where uncertainty often dominates the headlines, many investors are asking:

“Is this the right time to act?”

At ETHOS Property Group, we believe the answer is yes—if you know where to look and move with intention. Interest rates are steady, rental demand is rising, and property values are stabilising. Below, we break down the current Victorian property market and why 2025 presents a strategic opportunity for investors and homeowners alike.

The Current State of Victoria’s Property Market (May 2025)

🏦 Interest Rates Hold Steady
The Reserve Bank of Australia (RBA) has held the official cash rate at 3.85%, providing relief and more stability after a long stretch of hikes. This offers a clearer lending environment for buyers and investors.

📉 Vacancy Rates Remain Tight
Melbourne’s residential rental vacancy rate sits at 2.5% as of March 2025, still well below the 10-year average of 3.0%. This tight market is increasing competition and keeping rental prices strong.

📈 Rental Yields Are Strengthening
With rental demand growing and vacancy low, yields are improving. For investors, this translates to better cash flow—especially in key growth corridors.

💼 What Does This Mean for Investors?

If you’re waiting for the “perfect time” to invest, you may already be missing it. Here’s why 2025 is full of potential:

✅ Strong Cash Flow
Improving yields and low vacancy mean landlords are seeing better returns on well-managed properties.

✅ Less Buyer Competition
Cautious buyers create more room for negotiation. Investors acting now can enter or expand their portfolio with less pressure.

✅ Price Stability = Entry Point
Property values in many areas have levelled out. This is often the best time to buy—before the next wave of growth begins.

✅ Long-Term Rental Demand
Population growth and migration trends mean rental demand in Victoria is likely to remain strong well into the future.

🧭 Our Guidance at ETHOS

At ETHOS Property Group, we don’t sell hype. We offer honest advice and expert strategy, guided by ethics and excellence. Whether you’re buying your first investment or refining an existing portfolio, we help you:

Review your current holdings
Revalue and refinance where it counts
Renovate and refresh to improve returns
Reinvest in high-growth locations

Final Word

This may not be a boom market—but it is a strategic one.

If you’ve been waiting for a sign, this is it. With the right strategy, the current conditions can set you up for long-term success.

At ETHOS, we’re ready to walk that journey with you.

Inspired by values. Driven by excellence.

Nirali Desai

Founder | ETHOS Property Group

#TheNiraliWay

📞 Ready to take the next step?
Reach out to ETHOS Property Group for a private investment consultation with Nirali Desai. Let’s turn insight into action.