Melbourne is back on the radar - and not just for its coffee or cultural clout.
With falling interest rates, a pipeline of major infrastructure, and strong population growth, Victoria’s capital is once again in the spotlight for commercial property investors.
“After a few challenging years, the city is primed for growth and well-positioned for investment opportunities,” said Ellie Schwab, National Director of Strategic Advisory at Colliers.
“With interest rates having decreased nationally during the first quarter of 2025, Victoria's playing field is now set for new investment opportunities.”
From large-scale transport links to targeted stimulus, here’s why more investors are taking a closer look at Melbourne.
Infrastructure Projects, Population Fuel Growth
Two major transport projects - the Metro Tunnel and the West Gate Tunnel - are set to open in 2025.
Longer term, projects like the Suburban Rail Loop and a third runway at Melbourne Airport are expected to open up new development corridors and support long-term growth.
“These infrastructure developments are game-changers for Melbourne, enhancing our connectivity and supporting long-term growth,” said Ms Schwab.
Melbourne’s population is also a major part of the story.
Greater Melbourne is forecast to grow by an average of 97,000 people annually through to 2035, driving demand for homes, services and logistics.
“While population growth is anticipated to moderate from historic highs it will still remain robust, driving greater critical mass and economic gravity underpinning opportunities across all sectors,” said Jonathan Mayes, Associate Director of Research at Colliers.
Government Incentives Boost Confidence
Alongside these core fundamentals, new stimulus measures are boosting investor confidence.
A key example is the 12-month stamp duty reduction for off-the-plan strata dwellings, introduced in October last year.
The measure is designed to ease affordability pressures and boost buyer activity, especially in the apartment and townhouse market.
Planning processes are also being streamlined, with the State Government fast-tracking approvals for three to six-storey developments and committing to 50 new activity centres across Melbourne’s suburbs.
Meanwhile, a long-term focus on priority industries - including advanced manufacturing, health tech and agribusiness - is unlocking new industrial zones and supporting business investment in outer metropolitan areas.
Together, these initiatives are creating fresh momentum across multiple sectors.
Affordability, Jobs Support Strong Fundamentals
Melbourne’s relative affordability is another drawcard, with median house prices sitting at around 35% below Sydney’s, according to data from Domain.
The jobs outlook is also strong.
In the two years to February 2025, Australian Bureau of Statistics data shows Melbourne added more than 211,000 jobs.
Since 2014, more than 862,000 new jobs have been created.
With the right mix of macro tailwinds, government support and investor appetite, Ms Schwab said 2025 was shaping up as Melbourne’s time to lead.
“This favourable financial environment and Melbourne's unique blend of liveability, economic prospects, and strategic infrastructure investments make it the perfect time to invest in this dynamic city,” she said.
