3228 local real estate market update for Q1 2025

THE first quarter of 2025 has been one of the most active in recent years. With a clear lift in market momentum, many have felt the pace pick up, and the data confirms it.

In Q1 2024, there were 77 recorded sales across the 3228 postcode. This year, that number jumped to 128; a 66 per cent increase in buyer activity.

At Natural Real Estate, they’re proud to have led the region in sales volume this quarter – selling 43 of the 128 properties that changed hands across the 3228 postcode. It’s a result that reflects their commitment to delivering outstanding results for their vendors.

While activity has surged, prices have continued to adjust. The median sale price started at $1,230,000 in January, softened to $1,160,500 in February, and settled at $1,150,000 in March. Despite this, buyer confidence has notably improved. More purchasers are willing to stretch their budgets and act quickly, marking a clear shift from the caution of 2023 and 2024.

Much of this renewed energy has been driven by increasing talk of interest rate cuts, and the first official cash rate reduction has added to that optimism. While the immediate financial impact has been modest, the psychological shift has been powerful – fuelling belief that rates are finally on their way down.

At Natural Real Estate, 43 per cent of their sales this quarter involved multiple buyers competing for the same property. While they are not back at the frenzy levels of the COVID market, this is the strongest buyer competition they have seen since late 2022. Demand is clearly building, and buyers are becoming more decisive when the right home hits the market.

One of the most notable trends this quarter has been the shift in buyer demographics. Only 26 per cent of purchasers came from Melbourne, compared with 41 per cent already living in Torquay. That’s a big change from 2021, when Melbourne-based buyers made up 48 per cent of the market. The trend is clear: more locals are buying, and the coastal lifestyle continues to appeal to those already living here.

Looking ahead, all signs point to a strong second quarter. With renewed buyer confidence, stable competition, and a more favourable rate outlook, 2025 is shaping up as a promising year for both buyers and sellers in the Torquay region.

For more local market insights, or to discuss your property goals, get in touch on 0499 053 114.

WITH NATURAL REAL ESTATE

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