The Development Digest | 3 October 2025

We are pleased to provide you with our weekly development sector update – ‘The Development Digest’. This update will cover:

• Melbourne house prices again on the cusp of $1,000,000
• Headlines of the week
• Current & Forthcoming JLL Opportunities

Melbourne house prices again on the cusp of $1,000,000

According to an article released by REA, Melbourne home prices have now recovered all value post during the post-Covid downturn, and have reached a new high in September.

Despite the challenges the Melbourne market has faced, the PropTrack Home Price Index has revealed that September price growth of 0.5% has taken annual growth YTD to 3.79%, with the median house value for Melbourne now sitting at $999,000.

With Melbourne now back on the cusp of a $1m median house price, and significant tailwinds including immense population growth and relative affordability, we expect Melbourne to experience further growth over the coming years.

In a separate article, JLL residential research manager Will Silk said Melbourne’s long-term fundamentals were strong, with prices sitting below historic trends presenting attractive value compared to other capitals.

“Melbourne’s affordability compared with Sydney and its strong growth outlook are already drawing increased interest from both local and international buyers,” Mr Silk said.

Both articles can be viewed below:

Headlines of the Week

The AFR – Sydney, Brisbane rents rise amid sluggish supply

• National rental growth accelerated from 3.5% in May to 4.1% in August, with some Sydney inner-west suburbs seeing 9%+ increases
• Woollahra has the highest median weekly house rent at $1,804, highlighting supply-demand imbalances in desirable areas
• Brisbane inner-city suburbs like Newstead (8.7%) and Bowen Hills (7.4%) also experiencing strong rental growth
• NSW has 65,000 people on social housing waitlists with most areas having 10-year waits, while rental stress households expected to grow from 640,000 to 940,000 by 2041

The AFR – Melbourne gives notice to lazy landlords

• Melbourne City Council is targeting derelict CBD sites and "lazy landlords" with enhanced enforcement powers
• Developers cite COVID-related cost escalations, planning delays and rising interest rates as obstacles to project delivery
• Multiple high-profile sites remain undeveloped, including properties owned by MIT, M&L Group, and other major developers
• Council considering differential rates, levies or charges for owners of rundown buildings and sites

The AFR – Packer backed project clocks $125m in sales

• James Packer-backed One Toorak Place has achieved $125M in pre-launch sales, including a record $13.25M apartment sale
• The $400M mixed-use project will feature 47 residences with luxury amenities including concierge, spa facilities and golf simulator
• NPACT has multiple luxury projects across Sydney and Melbourne, including developments in Manly, Mosman and Balwyn

The AFR – Housing prices jump as supply shrinks in cities

• Housing prices rose 0.8% nationally in September 2024, the strongest monthly gain since October 2023, with median home values reaching $857,280
• Supply shortages are driving price increases, with Perth listings 45% below average, Brisbane down 31%, and Darwin down 53%
• Darwin (1.7%), Perth (1.6%) and Brisbane (1.2%) recorded the highest monthly price gains
• Extended first home buyer guarantee scheme allows purchases up to $1.5M in Sydney, $1M in Brisbane, and $950K in Melbourne with 5% deposits

The AFR – Housing supply boost will take two years to dent prices, says Governor

• RBA Governor Michele Bullock states housing supply policies will take more than two years to impact affordability
• Australia is falling behind the target of 1.2 million new homes by decade's end, with a 36,000 annual shortfall
• Building approvals fell 6% in August, with apartment approvals down 10.6% to 12-month lows

Current & Forthcoming JLL Opportunities

We are proud to be handling some of the most exciting development offerings in the market.

Should you wish to receive additional information or if you have a specific requirement or mandate you would like to discuss, please contact any member of the JLL team for a confidential discussion.

We hope you have enjoyed another edition of The Development Digest. Please contact our team if there is anything we can assist you with.

Jesse