In 2025, Melbourne's property market presents a complex landscape of opportunity and competition.
As home buyers contend with fluctuating values, high-stakes auctions, and intense buyer demand, the support of a skilled buyer’s advocate has never been more essential.
Drawing on expert insights from Lou Lihari, LP Advisory, and other leading advocates, this guide explores how to buy wisely in one of Australia’s most nuanced real estate markets.
Melbourne at a Glance
As of early 2025, Melbourne’s median dwelling value sits at $772,561, reflecting a slight decline of 0.82% year-on-year, according to CoreLogic data.
While the city has softened compared to booming counterparts like Perth and Adelaide, competition remains fierce in sought-after suburbs.
The Advocate's Edge in Melbourne
Lou Lihari offers a unique perspective on the Melbourne market.
"I'm also an ex-auctioneer, which allows me to bid on behalf of my clients at auction and understand how the auction system works, which is quite prevalent here in the Melbourne market."
According to Lou, many first-time buyers underestimate how challenging it is to compete effectively.
"The majority of our clients that come to us are the ones that have been searching for quite a long period of time. And we're not talking two or three months; we're talking in excess of 12 months."
He adds that agents often reveal more to advocates than to private buyers:
"They're not going to disclose every detail... but they will give us more of an indication of where ideally they'd like to see the price on the day of auction, or if it's a private sale."
Misconceptions That Can Cost You
Michael Taylor of Specific Property often works with buyers who overestimate their readiness to purchase in a market like Melbourne.
"Going in unprepared is a huge problem for many first-time buyers... they go into this process and don't necessarily have those things ticked off in advance, which puts them in a much weaker place."
Taylor also warns against falling for a property’s aesthetic rather than its practicality.
"They fall in love with renovated bathrooms and kitchens that look fancy, but then completely forego room sizes and natural light and ventilation and end up buying properties that are sub-par."
The Power of Hyper-Local Knowledge
While the Melbourne market is large, understanding local differences is key. Michael Sier of BuyerX Mornington illustrates the impact of street-level expertise.
"There is quite a difference sometimes from one side of the road to the other on values... If you don't have the time to put into it, you're going to be making a decision that's maybe not as well researched as what you need."
For buyers unfamiliar with a neighbourhood, the risks are amplified.
"A lot of the clients that we represent are either relocating to the (Mornington) Peninsula or they're buying a holiday home... They don't really know it as well as what they need to know it."
Buyer Fatigue and Emotional Traps
Carly Susic of Select Property Advocates notes that high-pressure campaigns and competitive auctions often overwhelm first-home buyers.
"There's 10 people bidding on every house, and, you know, I don't even get to bid on it," she says of her clients’ frustrations.
She emphasises that negotiation expertise is where advocates truly earn their value:
"We can always guarantee that we'll pay less than the buyer will getting inside."
Susic warns against making emotional decisions based on sales tactics.
"A lot of people are really naive... They would be eaten alive by an agent out there on their own."
Process-Driven, Data-Led Decisions
Tonya Davidson champions a highly structured approach to property selection in Melbourne’s competitive environment.
"We rely heavily on data to analyze the market and align our clients' briefs with current conditions. If it’s not aligning, then we can save them six months of heartache."
Tonya says being able to pivot quickly is crucial.
"It was really about what the property offered... I felt really proud of myself and pleased with myself, that I really added value to the outcome there and read the play."
Final Thoughts
With competition in Melbourne still high and subtle market shifts requiring daily monitoring, a buyer's advocate is more than a negotiator — they are a strategist, educator, and safeguard against costly mistakes.
Lou Lihari with an experienced perspective:
"Everyone thinks they're a real estate expert and they know the market, but it's not the case... Your average buyer, they're more emotionally involved, so they might go and pay way over for a property where we wouldn't allow that."
