Executive Director,
Group Board Member
The Bayside market has entered a phase of renewed confidence and measured momentum as 2025 draws to a close, buoyed by resilient buyer activity and the enduring appeal of Melbourne’s bayside lifestyle.
Alex Schiavo, Executive Director at Kay & Burton, says buyers have returned to the market with conviction, no longer waiting for further interest rate drops.
“Buyers have largely accepted current interest rates as the new norm, which has brought a welcome environment of stability and decisiveness after several years of hesitation,” Mr Schiavo says. “Rather than waiting for rate reductions, people are now acting with confidence across most price brackets, with the top end showing the strongest movement.”
Mr Schiavo expects these steady conditions to hold over the next two to three years, as balance returns to the market and confidence builds.
“Rather than waiting for rate reductions, people are now acting with confidence across most price brackets, with the top end showing the strongest movement.”
—Alex Schiavo
Cotality’s latest Pain & Gain report shows 89.8 per cent of Bayside resales in Q2 2025 were profitable with a median gain of $472,500—one of the stronger results in Melbourne’s prestige LGAs. Meanwhile, REIV market insights show Brighton’s clearance rate of 82.1 per cent (November 2025) sits slightly higher than the metropolitan Melbourne average, reflecting continued strength in Bayside’s core suburb.
These figures reaffirm the area’s enduring appeal among high-net-worth buyers, where coastal amenity, village vibrancy and proximity to the CBD remain powerful drawcards. The Church Street precinct continues to anchor the area’s lifestyle appeal, retaining its reputation as one of Melbourne’s most desirable retail and dining destinations.
Macroplan analysis reveals, 51 per cent of Bayside residents work from home at least one day a week—among the highest in metropolitan Melbourne—enhancing the region’s appeal for affluent professionals seeking both lifestyle and flexibility.
“Vendor expectations are becoming more aligned with the market,” Mr Schiavo says. “Competition at the upper end is becoming more focused, driven by established local buyers and returning expatriates who recognise long-term value in Bayside’s coastal positioning.”
The $1 million to $4 million segment remains consistently active, while turnkey and near-new properties priced between $5 million and $10 million are achieving particularly strong results.
“Buyers at this level want homes that are ready to move into,” Mr Schiavo says. “With renovation timelines still lengthy and unpredictable, the preference is for contemporary, low-maintenance living that delivers immediate comfort and enduring value.”
Recent transactions continue to illustrate the market’s depth, including the sale of 21 Wolesley Grove, Brighton, which drew four competing parties via an expressions of interest campaign before being secured by an expatriate buyer.
“Brighton remains relatively undervalued compared to Sydney’s waterfront or Melbourne’s established blue-chip enclaves,” Mr Schiavo notes. “There’s still significant potential for capital growth, particularly along the Golden Mile and premier waterfront positions.”
Looking ahead, he expects further uplift at the top end through 2026, during a period of steady and sustainable growth.