Home lending boom in Melbourne: Ringwood leads a six-fold increase in pre-approvals as buyers return to the city’s east amid lower rates, new government deposit schemes and steady price growth.
Home loan pre-approvals have increased six-fold in parts of Melbourne as buyers rush to secure a home before Christmas.
Figures from New Loan Market Group show that Ringwood recorded the biggest increase in Victoria between July and September compared to the same period last year, with a 500 per cent increase in the number of people preparing to purchase.
Box Hill buyers are also ready to go after a 267 per cent increase in their numbers, while potential buyers in the Moonee Ponds area have more than tripled.
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Hawthorn and Southbank also saw a 200 per cent increase in buyer pre-approvals.
The figures indicate a revival in lending activity in Melbourne’s middle and inner ring.
Brokers say the increase marks a turning point after nearly three years of subdued conditions.
The combination of the federal government’s First Home Guarantee 5 percent deposit system, with its greatly reduced eligibility criteria and unlimited places, and talk of a rate cut, have drawn thousands of sidelined buyers back into the market.
Credit market Ferntree Gully agent Preeti Sachdeva says first home buyers are finally breaking into Melbourne’s prime suburbs thanks to the 5 per cent deposit scheme and higher property limits.
Credit market Ferntree Gully agent Preeti Sachdeva said the policy changes had given first home buyers their first real chance to enter established areas.
“The plan has been a real game changer,” Ms Sachdeva said.
“People who were stuck renting can suddenly buy in areas they’ve been looking at for a long time. Buyers are regaining confidence and moving quickly before prices rise.”
Ms Sachdeva said the $950,000 price cap is especially important for the eastern suburbs, where average prices tend to be between $900,000 and $1.1 million.
“It has made a noticeable difference,” she says.
“Many of those quality homes that were just out of reach last year are now within budget.”
The Loan Market Broker said proximity, infrastructure and education were all driving factors behind the East’s dominance.
Ringwood Station, the main hub for the Belgrave and Lilydale lines, has become the heart of property growth in Melbourne’s east as buyers hunt for transport, lifestyle and amenities. Photo: Norm Oorloff
Ringwood’s connection to the Eastern Freeway and the Belgrave-Lilydale line, Box Hill’s education precinct and Hawthorn’s café and university culture were major draws for owner-occupiers and investors alike.
“People want to stay close to the communities they grew up in,” Ms. Sachdeva said.
“Even younger generations try to buy near family support networks. That’s why these areas are never really cool for long.”
Loan Market chief executive David McQueen said cheaper financing and new incentives have “completely changed the rhythm of the market”, increasing confidence and competition across Melbourne.
“There is a definite change in sentiment,” McQueen said.
“More people are attending openings, more homes are selling under the hammer and buyers are getting approvals early to stay ahead.”
Economists say the renewed competition has collided with limited listings, a pattern seen in several Melbourne markets.
PropTrack economist Angus Moore says Melbourne’s housing market has stabilized, with listings tightening and steady growth returning after years of uncertainty.
PropTrack senior economist Angus Moore said Melbourne’s quotes remained relatively tight this spring, but not critically low.
“The total number of listings in Melbourne, so that’s new and existing combined, was down about 10 per cent compared to a year earlier,” Moore said.
“Last spring was unusually strong, with plenty of choice for buyers.
“So while we are seeing slightly less choice this year, there is not a dramatic shortage; there is still reasonable availability in the city at the moment.”
Mr Moore said market conditions were firmer than in recent years, with prices rising steadily and clearance rates solid throughout the spring.
“It’s not entirely a story of scarcity. Competition from buyers is increasing again,” he said.
Box Hill’s mix of top schools, transport links and a thriving shopping center has led to a 267 per cent increase in pre-approved loans, making it one of Melbourne’s busiest property markets. Photo: NCA NewsWire / David Crosling
As to whether the 500 percent increase in Loan Market pre-approvals could be a harbinger of a boom, Moore said such large growth rates often reflect a small base.
“Overall we are seeing steady, consistent price growth in Melbourne this year, not spectacular, but solid,” he said.
“That’s actually a very positive shift compared to recent years since the Reserve Bank started raising rates in 2022.
“The market has clearly stabilized and has found its footing again.”
Ringwood recorded Victoria’s biggest pre-approval increase – a 500 per cent increase – as buyers focused on family homes near highways, rail links and established amenities. Photo: Norm Oorloff
The senior PropTrack economist said affordability remains the main barrier to any new boom.
“For prices to really rise, interest rates have to fall further, or wages have to rise much faster than they are now,” Moore said.
“Depending on how inflation plays out, we could get one or two more cuts, and that will certainly help, but it won’t get us back to the ultra-cheap conditions we saw in 2021.”
Mr Moore said despite these high loan pre-approvals, Melbourne’s long-term challenge is boosting supply.
Easy access to the Eastern Freeway continues to drive buyer demand across Melbourne’s far east, connecting suburbs such as Ringwood, Blackburn and Box Hill to the CBD.
Photo: NewsWire / David Geraghty
“Affordability challenges show that we are not building enough,” he said.
“Victoria is doing better than most states relative to its size, but it is clear we still need to build more homes to keep up with demand.”
Buyer’s agent and director of Simple Capital Advisory, Alan Fernandez, said the increase in pre-approvals was already translating into stiffer competition at auctions.
“There are more active bidders, and homes that sat idle for weeks last year sold within days,” Fernandez said.
“That tells you the buyer’s intent is real, not speculative.”
Mr Fernandez said Melbourne’s Eastern Corridor had become one of the most competitive real estate belts in the country.
“Since the new threshold came into effect, demand has gone to another level,” he said.
Simple Capital Advisory director Alan Fernandez says Melbourne’s eastern corridor has become one of the country’s most competitive markets, with pre-approvals now translating into faster sales and fiercer auctions.
“Ringwood, Box Hill and Wheelers Hill are firmly in control.
“You can’t just build another house there, so because supply is still low, competition is fierce.”
The director of Simple Capital Advisory said Melbourne’s long period of flat prices made the city look undervalued compared to other capital cities.
“Ringwood or Box Hill look cheap compared to their Sydney equivalents,” Fernandez said.
“Interstate investors are taking notice and jumping in because the gap is too big to ignore.”
He warned that waiting for more stock could be expensive.
“If you come across a property that’s going for a lot of money, buy it now,” he said.
“In six months you might pay another fifty to sixty thousand dollars for the same house.”
PropTrack’s October Market Trends report supports this shift.
House prices in Ringwood have risen by six per cent in the past year to an average of $1.06 million, while homes in Box Hill have risen by 0.5 per cent to $1.56 million.
In Hawthorn, unit prices have risen 10 per cent in three months as professional buyers and downsizers return domestically.
Top 10 suburbs with pre-approval Victoria
| Suburb | Growth pre-approved | Median price (October 2025) | Price change over 12 months |
| Ringwood | 500% | $1.06m (house) / $646k (unit) | 6% / 3.2% |
| Box Hill | 267% | $1.56M (house) / $540k (unit) | +0.5% / −1.1% |
| Moonee Ponds | 205% | $1.47M (house) / $635k (unit) | −6.6% / −0.7% |
| Hawthorn | 200% | $2.88 million (house) / $804,000 (unit) | −5.7% / +10.2% |
| South Bank | 200% | — /$555k (unit) | — / −9.0% |
| Essendon | 200% | $1.66m (house) / $682k (unit) | −4.9% / +4.1% |
| Saint Kilda | 200% | $1.59 million (house) / $600,000 (unit) | 3.7% / 2.8% |
| Fool Warren | 200% | $770k (house) / $560k (unit) | 5.1% / 2.3% |
| Grovedale | 100% | $675k (house) / $530k (unit) | 2.3% / 1.4% |
| Wheeler’s Hill | 100% | $1.45M (house) / $925k (unit) | −2.1% / −1.5% |
Source: LoanMarket and PropTrack
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