From prosolution.com.au: Investment-grade apartment prices in Melbourne may be on the verge of a growth cycle after remaining flat since 2020, driven by tighter supply, significantly increased construction costs, and upcoming government incentives for first-time buyers.

The construction value for residential dwellings in Victoria has decreased by 27% since 2019, despite a population increase of over 500,000.

Falling interest rates are expected to enhance borrowing capacity, particularly for buyers in the sub-$1 million market, which may further stimulate demand for investment-grade apartments.