City Beat May 2025: Melbourne units continue recovery as stimulus and construction confidence drives off the plan market
Consistency hasn’t been a word used to describe Melbourne’s property market in recent years — at least, not in a positive way.
For a time, it was consistently the worst-performing capital city property market nationally. While values rose across most of Australia, the Victorian capital not only lagged behind but even went backwards.
However, the tide has turned since the start of the year, with the market bottoming out around the same time the RBA delivered its first rate cut.
The June Home Value Index by Cotality (formerly CoreLogic) showed unit values grew by 0.4 per cent in May, continuing the same growth pattern seen in both March and April.
The off-the-plan property market has benefitted from the broader upswing — fuelled not only by rate cuts, but also by extended stamp duty concessions, increased construction confidence, and more new projects entering the pipeline.
What happened in Melbourne’s off the plan apartment market in May?
May marked the extension of the VIC Government's stamp duty abolition. Originally launched in October last year, the scheme allows buyers to pay no stamp duty on any new or off the plan apartment, regardless of price.
Initially set to run until October 2025, the recent VIC budget announced it would be extended to October 2026.
The $61 million initiative aims to reduce upfront costs for buyers and accelerate the construction of new apartments and townhouses across the state. The expanded concession has already saved buyers an average of $24,517, with no price caps or eligibility restrictions.
Read more: VIC Government extend stamp duty abolition for off-the-plan properties to October 2026
Some of Melbourne's leading developers were active in May. Design-led developer milieu launched their third active development, marking a return to Brunswick, where they’ve already delivered four projects.
Their fifth, Saxon Street by milieu, will bring 77 apartments to the heart of the Merri-bek Arts and Culture Precinct.
The nine-level building has been designed with sustainability and cultural integration in mind, featuring a 7.5-star NatHERS average rating and all-electric infrastructure.
Located near Brunswick Baths, Balam Balam Place, and the local library, Saxon Street aligns with the council’s vision to transform the area into a civic and cultural hub.
Read more: Saxon Street by Milieu to bring new housing and urban design to Brunswick’s cultural core
National developer Lendlease broke ground on Ancora at Collins Wharf in May — a strong signal of confidence in the market.
The 28-level tower in Docklands, already over 50% sold, is the third residential building in the six-stage Collins Wharf precinct, which will eventually deliver 1,800 residences and 5,000 sqm of parkland.
Read more: Lendlease commences construction at Ancora Collins Wharf
There was another significant construction milestone in May with the commencement of the Fishermans Bend Innovation Precinct — a $180 million government-led initiative set to anchor Australia’s largest urban renewal project.
With infrastructure now underway, the 480-hectare site is being primed to support 80,000 residents and 80,000 workers by 2050.
Central to the precinct will be the University of Melbourne’s new School of Engineering and Design, opening in 2026. The campus will foster collaboration between students, researchers, and industry leaders, with a strong focus on applied knowledge and practical solutions.
Read more: Construction begins at Fishermans Bend Innovation Precinct
At the top end of the market, Orchard Piper and joint venture partner NPACT secured a $20 million sale for the penthouse at One Toorak Place, setting a new record for the suburb.
Spanning 560 sqm, the five-bedroom residence includes a private wellness zone and an eight-car garage — redefining apartment living in Melbourne’s most exclusive postcode.
The sale also reflects growing demand for luxury off the plan homes with hotel-style amenities. Construction begins later this year, and the project will deliver 47 residences, plus new retail and dining, including a venue by restaurateur Chris Lucas, to revitalise Toorak Village.
Read more: Orchard Piper secures $20m record-breaking penthouse sale at One Toorak Place
Joel Robinson
Joel Robinson is the Editor in Chief at Apartments.com.au, where he leads the editorial team and oversees the country’s most comprehensive news coverage dedicated to the off the plan property market. With more than a decade of experience in residential real estate journalism, Joel brings deep insight into Australia’s evolving development landscape.
He holds a degree in Business Management with a major in Journalism from Leeds Beckett University in the UK, and has developed a particular expertise in off the plan apartment space. Joel’s editorial lens spans the full lifecycle of a project—from site acquisition and planning approvals through to new launches, construction completions, and final sell-out—delivering trusted, buyer-focused content that supports informed decision-making across the property journey
