Your Besser Guide to the Real Estate Market – January 2026
Welcome to 2025. A new year, a new journey, and a new market! The real estate market is poised for renewed activity and opportunities.
The year has started strong, with the team kicking goals at Besser+Co. We are proud to say we have sold several properties in the first two weeks of January and have an impressive 16 auctions booked for the first quarter.
We began our market update initiative in 2023 to give our clients a balanced view of the market. At Besser+Co, we digest the media reports, compare them to our firsthand experiences at our properties and conversations with our clients and prepare a market update that is a fair report of the market conditions in both residential sales and property management. We now have over 2000 people read our market update each fortnight, making our boutique agency both proud and humble.
We look forward to keeping you informed, each fortnight over 2025, about the latest developments from the frontline in the real estate market.
The suburbs of Stonnington, Glen Eira, Bayside and the surrounding council areas ended 2024’s property market, reflecting the expected outcome of a slight downturn in Greater Melbourne’s property prices. The real estate market slowed due to interest rates remaining steady for 13 consecutive months, the onset of land taxes for investors, and a reduction in property grade as a high number of properties were considered ‘investment grade.’
The good news is that there is optimism on the horizon. Many economists predict that the current market weakness will be “short and sharp.” CoreLogic Australia’s Head of Research, Eliza Owen, noted, “We’re at the point now where something’s got to give.” Most experts anticipate that there will be property growth in the second half of the year, including ANZ economist Madeline Dunk, who stated, “We expect capital city housing prices to grow 2.7 per cent in 2025.”
Overall, Melbourne’s residential sales market recorded a 3.0% decline in property values over 2024, and rental markets finished on a quieter note.
The new year has brought renewed activity to the real estate market. Many of the properties carried over from last year have already attracted buyer interest, with sales achieved at acceptable price points, sometimes more than acceptable price points for our vendors. The message remains the same—patience and persistence are key until interest rates ease.
The rental market has moved away from its slower finish of 2024 with a strong start to 2025. With only a few weekends of open inspections completed, applications are flowing in, at higher-than-normal rates, for available properties, showing renewed demand for rental properties.
Besser+Co is here for you in 2025.
If you’re in the market to buy, sell, rent, or lease, our team is here to support you with our dedicated real estate experience, expertise and desire to fulfil your dreams.
Thank you for placing your trust in Besser+Co, and your continual reading of our market updates.
Wishing you all the success in 2025.
