2025’s Transformative Journey for Melbourne’s First-Home Buyers

The path to owning a home in Australia’s housing market has been challenging in recent years.

However, things are looking up for Victorian first-home buyers (FHB).

Rising living costs have made it tough for would-be homebuyers, particularly those struggling to save for deposits while also paying rent.

Senior realestate.com.au economist Anne Flaherty says hope is on the horizon, particularly for Victorians.

“Melbourne is actually probably the best city to buy in right now, and it’s definitely a buyers’ market,” she says.

“Prices have been coming down, and Melbourne is on track to be the country’s third most affordable capital city soon.

“Only Hobart, Darwin, and Perth are currently cheaper.”

She notes that declining house prices and the state government’s commitment to building more homes are key factors easing market stress.

Savvy buyers are also getting better at seizing new opportunities in Melbourne’s growth corridors.

Savvy first-home buyers are overcoming the market in several areas of Melbourne.

According to State Revenue Office data, Kalkallo, a new suburb just 31 km north of the CBD, was one of the most purchased postcodes in 2024, with over 6,000 transactions.

Flaherty says the popularity of Kalkallo and surrounding suburbs is likely to continue as it “emerges” and becomes more established.

“It’s part of that growth corridor where we’re seeing increases in population, infrastructure, and amenities,” Flaherty explains.

“It’s an especially appealing suburb to first home buyers due to its lifestyle and affordability compared to other established inner-city suburbs.”

Proptrack’s latest Home Price Index affirms Kalkallo is an easier location to enter the market, with the median house price hitting just $630,000 in December.

This figure is significantly lower than Melbourne’s typical value of about $895,000, but prices have risen from $544,000 in 2020—an increase of 15%, showing there’s still strong growth potential while remaining affordable.

Focusing the search on suburbs that have an easier entry point will help first-home buyers get in quicker.

Hands-on help for Melbourne first-home buyers

Kickstarting the journey can be challenging, so buyers will want as much help as possible.

Given the current housing market conditions, Stockland’s Open Doors event series, kicking off at Cloverton on February 23, will be welcome news for those wanting the best insights and most practical next steps.

This initiative partners with The Urban List and REA Group to equip people with the knowledge they need.

“This offers a unique opportunity for attendees to gain valuable insights into the property industry from leading experts and get a firsthand experience of the vibrant lifestyle,” James Hawker, Development Director at Stockland, explains.

It’s an excellent chance for buyers to experience these newer suburbs for themselves.

How first-home buyers are getting ahead in 2025

To succeed in 2025, first-home buyers have to be innovative.

Flaherty says renters keen to buy will benefit from familiarising themselves with government initiatives, like the First Home Owners’ Grant and state stamp duty concessions, which will significantly reduce property purchasing costs.

In Victoria, the Victorian Homebuyer Fund allows buyers to use a deposit of just 5%, easing the savings burden for renters.

Additionally, the First Home Super Saver Scheme (FHSS) will help overcome deposit gaps.

Flaherty indicates that the cost of borrowing is forecast to decrease.

“There has been a lot of uncertainty around interest rates,” she says.

“But people are now anticipating a rate cut in early 2025, so many buyers are biding their time, waiting to see what happens with interest rates.

“When they start to come down, I think that will boost confidence and likely increase the number of people looking to buy.

“Buyers should also consider newer, more affordable suburbs to avoid the risk of being priced out of the market.”

Cloverton in Kalkallo is drawing in buyers with its stunning homes and lush green spaces.

Stockland’s Cloverton in Kalkallo is a flourishing new master-planned community in the city’s north that is attracting many buyers, according to Mr Hawker.

It will feature 17 local parks, a café hub, the Merri Creek Conservation Open Space, bike paths, a train station, and a bus network, making it highly appealing, especially to young families.

Cloverton is close to the Kalkallo town centre and there are three schools within the community – Banum Warrik Primary School, Gilgai Plains Primary School and Hume Anglican Grammar.

Plus there’s the proposed Metropolitan Activity Centre, which will serve as a future community and employment hub.

Mr Hawker says Cloverton has it all, using the company’s more than 70 years of design and building experience to meet residents’ needs.

“There’s a range of quality housing including land, house and land, and townhome options that cater to first home buyers as well as families looking to upsize or downsize,” he says.

Stockland aims to “cultivate a sense of community” at all its new developments, using feedback on health, wellbeing, and quality of life to inform each new location.

Mr Hawker adds that Cloverton is just one of many beautiful developments across Melbourne that aspiring buyers can explore.

“Residents can enjoy a Saturday coffee by the lake at the Waterside Café in Highlands, Craigieburn, walk their kids to school at Lyra in Beveridge, or visit the local playground in Katalia, Donnybrook,” Mr Hawker explains.

Find out more about Cloverton here.

Family life can flourishes among parks, vibrant community spaces, and beautifully crafted homes.

Strategies for overcoming FHB roadblocks

In addition to the Open Door events, various resources and tools are available to assist first-home buyers in navigating the complexities of purchasing their first property.

At Stockland Sales and Information Centres, buyers can access tailored information to help address the deposit hurdle.

This includes learning about government grants and off-the-plan purchasing options to maximise the buying budget.

For those ready to build a new home, the sales team are available to help plan and smooth the building process.

Orass, a first-home buyer and future resident of Stockland’s Highlands community in Craigieburn, said being guided by experts “gave us a lot of confidence.”

“The sales professional that looked after us was outstanding.

“He asked us what we were looking for in terms of facilities around the land, and we are very happy with our decision.”

Mr Hawker says that the best way for keen buyers to begin their new home journey is simply to get in contact.

“We encourage first home buyers to visit our communities to experience the lifestyle, and our sales team are helpful in discussing the housing options that best suit different budgets and needs.”

Visit Stockland Cloverton