Kyneton Property Market Update 1st Half 2025
Kyneton, Victoria, offers a perfect blend of country charm and modern convenience, with vibrant cafes, art galleries, and historic architecture. Surrounded by natural beauty and only an hour from Melbourne, it’s ideal for a relaxed yet connected lifestyle.
Property Trends
In Q1 2025, Kyneton (which for this report includes sales and rental data for postcode 3444) recorded a median house price of $810,000, representing an annual (Q1 2024 – Q1 2025) price softening of -4.7%. This is largely due to higher interest rates and shifts in consumer sentiment. Comparing Q1 2024 and Q1 2025, house sales dropped by -11.1% (to 32 sales in Q1 2025), indicating low stock. A more affordable median house price presents a timely opportunity for buyers to enter the market, but low stock suggests a potential market recovery – thus, buyers must act fast. The unit market remains small, with just 2 sales in Q1 2025 at a median price of $512,500.
Project Development
Kyneton plans to see approximately $107.0M of new projects commencing construction from 2024 to 2026. While some residential projects are planned, only a few ready-to-sell houses will enter the market in the short term. Most land lots require time to build, thus, it is a medium-term strategy to add more new houses. The limited supply of ready-to-sell new houses is insufficient to answer current demand. Thus, the existing shortage housing stock is expected to stimulate a price recovery in the short term.
Rental Market & Growth
House rental yield in Kyneton was 3.0% in March 2025, relatively on par with Macedon Ranges Shire (3.4%) and Melbourne Metro (3.2%). Median house rental price declined slightly by -4.4% in the past 12 months to Q1 2025, at $545 per week. In this period, the number of houses rented remained steady, at 18 homes in Q1 2025. A decline in rental price is consistent with trends in other regional Victorian areas.
Vacancy Rates & Property Investment
Kyneton recorded a vacancy rate of 1.1% in March 2025, below Macedon Ranges Shire’s 1.6% and slightly above Melbourne Metro’s 0.9%. Vacancy rates in Kyneton have increased over the past 12 months due to investors returning to the market. However, a 1.1% vacancy rate remains well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, meaning rental homes are filled faster. This confirms healthy rental demand and a sustainable investment environment, particularly with a more affordable entry point in Q1 2025.
