We are on the cusp of a major rebound.
Big things are brewing in the Melbourne property market, and investors are starting to pay attention.
We’ve spent time talking to accountants, listening to economists, reading the data, and tracking global market trends because in real estate, it’s not enough to just sell homes.
It’s about knowing how policy, trade, population, and psychology all intersect with property and where money is flowing.
Here is what we’ve gathered with real confidence:
Demand is rising, listings are tight, and interest rates are expected to ease but here’s the twist: there’s another global factor set to shake things up in our favour: Trump-era tariffs.
CNA➡️AU
During the Trump administration, the U.S. imposed heavy tariffs on Chinese goods. When the U.S. imposed steep tariffs on Chinese goods, it made it harder for Chinese exporters to sell into their biggest market. In response, they are redirecting their goods, where trade barriers are much lower including building materials and manufactured products to markets like right here in Melbourne, Australia.
Combine that with:
– High demand
– Population growth
– Government incentives
– Easing interest rates
Benefit?
✔️ More affordable Chinese imports: Building materials, appliances, fittings, and manufactured goods are now being “dumped” (sold at lower prices) into markets like Australia.
✔️ This increase in supply helps drive down prices, for construction-related products.
✔️ Cost of living drives down, from cheaper manufactured good & products supplied in our local Coles & Woolworths
✔️ As building materials get cheaper, new developments more financially viable and potentially slowing the rise in housing prices.
Why Property over Stocks Right Now
While tariffs rattled the global economy and caused equity markets to tumble QUICKLY (think 18% in 24 hours), property in cities like Melbourne has remained a more stable, tangible asset. This drives offshore investors regaining confidence in the Melbourne market which was always ripe in foreign investment flow.
Unlike stocks, bricks-and-mortar real estate isn’t as reactive to short-term volatility and when inflation or economic uncertainty looms, many investors see property as a safe haven.
But what about Victoria’s investor taxes?
Yes, Victoria has introduced several levies on local and foreign investors but that hasn’t stopped money from coming back. Why?
Because Melbourne’s fundamentals are too strong to ignore:
✔️ One of the fastest-growing populations in Australia
✔️ World-class education and lifestyle
✔️ Undersupply of housing
✔️ Rising rental yields
✔️ Cheaper development inputs thanks to redirected imports
For overseas and interstate buyers, Melbourne still represents long-term value and growth potential, especially compared to overheated or saturated markets elsewhere.
Position yourself ahead of the next upswing.