As the Australian property market braces for projected price increases in the coming year, a distinct window of opportunity has opened for developers and investors. New market data indicates that despite widespread affordability concerns, specific "underrated" pockets within Melbourne offer high liveability, strong infrastructure pipelines, and untapped growth potential.
Axtra Property, a leading master property agency in Melbourne, is urging developers to pivot their focus toward these high-amenity corridors. By aligning development pipelines with the shifting demand for affordable, well-connected living, Axtra Property is positioning its partners to capitalize on the next wave of market expansion.
The "Smart Moves" for 2025
Recent industry research, specifically the Smart Moves: Capital City Edition Second Half 2025 report, highlights a critical trend: buyers are seeking value within a 20-kilometre radius of the CBD in areas that boast median prices lower than the metro average.
For Axtra Property, these findings validate a strategic direction the agency has been championing for its developer clients.
"The data is clear—the smart money is moving to areas where infrastructure meets affordability," says a spokesperson for Axtra Property. "We are seeing a surge in demand for precincts that offer the '20-minute neighbourhood' lifestyle. For developers, this means the most lucrative opportunities lie in suburbs that are currently perceived as undervalued but are on the brink of significant gentrification."
Melbourne’s Key Growth Zones
The market analysis specifically pinpoints Melbourne’s western and north-eastern corridors as prime targets. House buyers are increasingly looking toward St Albans (median $685,000) and Sunshine North ($756,000), while Heidelberg West ($760,000) remains a strong contender in the north-east.
For the unit and high-density sector, the data points to Bundoora ($470,000), Broadmeadows ($485,000), and the established hub of Box Hill ($540,000).
Axtra Property notes that these figures represent a significant disparity compared to Greater Melbourne’s median prices, creating a compelling value proposition for off-the-plan sales and new project launches.
The Developer’s Advantage: Medium Density and Regeneration
One of the most significant insights for developers is the potential for lot consolidation and regeneration. As noted by industry observers, suburbs like St Albans are drawing attention because they still feature large lots capable of being approved for townhouse or apartment developments.
Axtra Property specializes in bridging the gap between land acquisition and project sales in these regenerating zones.
"Many Melburnians do not yet fully appreciate the attractiveness of these areas, which keeps entry costs lower for developers," the Axtra Property representative added. "However, smart investors know what is coming. With proximity to assets like Victoria University, the airport, and major retail hubs, these suburbs are ripe for medium-density projects. Axtra’s role is to ensure that when a developer builds in these corridors, the product is perfectly matched to the demographic moving in."
Navigating the Unit Market Shift
With housing affordability at record lows, the shift toward unit living is accelerating. The market data suggests that prospects for buyers are increasingly found in the unit sector, where more stock is being developed.
Axtra Property is actively collaborating with agencies and developers to bring high-quality unit stock to market in areas like Box Hill and Bundoora. The agency provides end-to-end master agency services, ensuring that new developments are not only built to high standards but are marketed effectively to capture the "rent-vestor" and first-home buyer markets that are currently priced out of detached housing.
The Window of Opportunity
Economists predict that if the cash rate stabilizes or cuts occur in 2026, purchasing power will increase, likely pushing prices in these affordable suburbs upward. This creates a time-sensitive imperative for developers to secure sites and launch projects now.
"The opportunity may not last," warns Axtra Property. "As we move into the next financial year, we expect these 'underrated' suburbs to correct upward in price. Developers who partner with Axtra Property today to identify sites and plan launches will be the ones selling into a peak demand cycle tomorrow."
Partnering for Success
Axtra Property stands ready to assist developers and real estate agencies in navigating this evolving landscape. With a deep understanding of Melbourne’s micro-markets and a proven track record in project marketing, Axtra ensures that developments in these high-growth corridors achieve maximum ROI.
For developers seeking to unlock the potential of Melbourne’s most promising suburbs, Axtra Property offers the expertise, network, and strategic insight required to turn market trends into tangible success.
About Axtra Property Axtra Property is a premier master property agency based in Melbourne, Australia. Specializing in project marketing, sales strategy, and development consultation, Axtra connects developers with the right buyers, ensuring successful project delivery across the residential and commercial sectors.