Melbourne’s property market is bracing for a significant valuation leap, with forecasts predicting a double-digit price increase over the next two years. For developers and industry leaders, this trajectory signals a critical window to leverage strategic partnerships as inventory tightens.
According to new data released by consultancy giant KPMG, Melbourne house prices are projected to rise by a combined 14.1 per cent by the end of 2027. The forecast outlines a growth trajectory of 6.8 per cent in 2026, accelerating to 7.3 per cent in 2027.
For Axtra Property, a leading Master Property Agency in Melbourne, these figures represent more than just statistics—they indicate a shifting landscape where strategic project marketing and B2B alliances will define success.
Capitalizing on the $150,000 Uplift
The KPMG data suggests that Melbourne’s median house price, sitting at approximately $1.012 million as of December based on PropTrack figures, is set to climb to roughly $1.16 million—a capital injection of roughly $150,000 per asset. Similarly, the unit market is forecast to see values increase by approximately $83,000 over the same period.
"The data confirms what we are seeing on the ground: Melbourne is positioned for a robust recovery," says a spokesperson for Axtra Property. "For developers holding stock or planning launches, the coming 24 months offer a prime environment to maximize Gross Realization Value (GRV), provided they have the right distribution channels in place."
Axtra Property notes that while the projected growth creates value, the real challenge for developers lies in navigating a market where buyer behavior is evolving rapidly.
The Shift to Off-Market and Channel Sales
The outlook comes amidst a structural change in Victoria’s market. While land tax changes have influenced investor caution, they have not stifled demand; rather, they have pushed it into different channels.
Industry observers note that public investor participation has dipped, but private transaction volume remains high. Buyers' agents and savvy investors are increasingly moving toward off-market transactions to secure clearer pricing and avoid public auction competition.
This shift plays directly into the strengths of a Master Property Agency.
"The public listing market is tightening because existing homeowners are holding onto assets, converting first homes into investments rather than selling," Axtra Property analyzes. "This reduces the recycling of established properties, creating a vacuum that new developments must fill."
Because traditional public campaigns are facing headwinds from investor sentiment regarding land tax, the role of Axtra Property’s extensive channel network becomes vital. By connecting developers directly with a curated network of investment groups and partner agencies, Axtra bridges the gap that traditional retail marketing is currently struggling to cross.
Why Partnerships Matter Now
With the market tightening and turnover slowing in the established sector, real estate agencies are hungry for high-quality stock to offer their databases.
Axtra Property serves as the nexus between these two groups:
- For Developers: Axtra provides immediate access to a wide network of sales agents, ensuring projects move quickly despite the "visible" slowdown in public investor activity.
- For Agencies: Axtra rigorously selects and curates premium, high-quality projects (both land and units), providing agents with a reliable pipeline of superior stock to offer their clients.
The Outlook for 2026 and Beyond
While high interest rates and policy changes have created a "wait and see" approach for some retail buyers, the structural shortage of housing combined with the predicted growth creates a compelling case for development.
Melbourne’s lower price base compared to Sydney, combined with its strong underlying demand, has left it well-positioned for this upswing.
Axtra Property stands ready to help developers navigate this transition. By leveraging deep market insights and a robust distribution network, Axtra ensures that new projects don't just enter the market—they capitalize on the upcoming growth cycle.
Developers and agencies looking to secure their position in Melbourne’s rising market are invited to contact Axtra Property to discuss strategic partnership opportunities.