Hi,
Domain’s Melbourne auction preliminary clearance rate for last weekend has come in at 58%. It was a huge auction weekend with 1,172 auctions reported, 676 selling, 97 withdrawn and 399 passed in. The REIV has reported there were an additional 416 private sales. In comparison, the clearance rate for the same weekend last year was 65%.
Cotality released their quarterly property price data which shows that Melbourne property prices have decreased by 0.2% in the Jan to Mar 26 period. This is the fourth month of property price decline with houses declining 1.1% from November last year and units by 0.4% (overall decrease of 0.9%). Whilst these numbers are not demonstrating large property price falls, some of the properties we have purchased over the past six weeks have been upto 10% below last years comparable sales. There are fewer and fewer properties selling well above their advertised property range, in fact, the last three properties I have purchased have been secured for under the bottom of the advertised price range. The current market conditions have allowed some buyers to secure superior properties than what they would have purchased last year.
Also as a result of the current market conditions, there has been an increase in off market activity due to some vendors not willing to spend thousands of dollars on marketing their property with the uncertainty of what their property will sell for.
How long these conditions will last? Of course, no one can answer that, and it is almost certain that we will see an interest rate rise next month which likely extend these conditions for a period of time thereafter. However, we can’t ignore that our population is still increasing and we are not building enough properties to house everyone which is creating pressure. And I do believe, when market sentiment improves, the Melbourne property market will bounce back strongly and buyers will be once again competing strongly to secure properties.
Have a great week.
Kim Easterbrook – Managing Director
Hi,
Whilst generally buyer sentiment is down, Melbourne’s auction clearance rate came in at a solid 59% on a huge auction weekend. A total of 1,324 auctions were reported to Domain, with 780 selling under the hammer, 186 withdrawn, and 358 passed in. I expect this clearance rate to decline once more auction results are reported; however, it does demonstrate the willingness of both buyers and vendors to transact in the current market. In comparison, the same weekend last year resulted in a clearance rate of 63%.
There is no doubt that there is a level of caution in the Melbourne property market, but with so many sales recorded, there is also a sense of people just ‘getting on with it’. This sentiment has come from both buyers and sellers. Buyers are cautious and are factoring in potential future interest rate rises, so run-away results are exceptionally scarce. Additionally, there is no “fear of missing out,” and buyers are willing to walk away from a property rather than overstretching themselves.
Vendors, on the other hand, in some cases are having to reduce their prices to meet the market. Properties that have not sold, generally have had interest from one or two buyers, but some vendors have dug their heels in and were not willing to “meet the market” on the day. Over time, they may need to reduce their prices in order to secure a sale.
Houses that are fully renovated, well located, and have a good floorplan are typically selling in line with comparable sales from last year. However, properties that require renovation, are in poor condition (i.e. knockdowns), or are located on main roads are selling around 5% to 10% below what comparable sales from late last year would suggest.
These are interesting times for the Melbourne property market. However, with 780 properties selling over the weekend and a further 601 private sales reported to the REIV, it does show that buyers and sellers are still willing to transact. In many cases, vendors are having to decrease their prices to get the deal done.
Have a great week.
Kim Easterbrook – Managing Director
Hi,
Another big auction weekend in Melbourne with 1,028 auctions reported to Domain. 609 properties sold under the hammer, 160 were withdrawn and 259 passed-in. The preliminary clearance rate for this weekend is sitting at 59% but will decrease a little after the remaining auction results are reported. The same time last year the clearance rate was 65%. The final Melbourne auction clearance rate for last weekend was 58% which is lower for the same weekend last year at 65%.
The combination of climbing interest rates and the Iranian war has created uncertainty in the Melbourne property market which has resulted in a declining auction clearance rate. The clearance rate is now indicating we are in a more balanced or slightly buyer-leaning market. Whilst this war continues, I am expecting the property market to be patchy and price-sensitive.
After analysing last weekend’s auction results, it really demonstrates where the majority of the buyers current are. The sub $2m property market was very active and if the vendor had realistic price expectations, the properties were selling on the day. Main road properties struggled with many passing-in, which is not unusual when the property market is patchy. The $2m to $5m price point is where things start to get wobbly. A lot more passed-in properties, mostly houses, which makes it a great time if someone was looking to upgrade into a larger home. Interestingly, some big sales last week with two properties in Toorak selling in excess of $10m.
Whilst market conditions are turning to be more favourable to the buyer, there is still genuine interest from buyers willing to transact now, but there is at times a disconnect between vendors price expectations and what buyers are prepared to pay. Even in the active sub $2m market, there weren’t really any ‘run-away’ results as such. Properties appeared to be selling where the comparable sales were suggesting they were worth.
I was successful purchasing a two bedroom, two bathroom, modern villa unit at auction on the weekend in Caulfield East but not without my work cut out. A very competitive auction with 5 bidders with more buyers in the crowd that didn’t put up their hand. However, whilst there was genuine interest, buyers had their limits and were not prepared to stretch past their budgets and the property sold for a price not too far past the vendor’s reserve and for an amount around what the property was actually worth.
Have a great week.
Kim Easterbrook – Managing Director
Hi,
A huge auction weekend in Melbourne with 979 auctions being reported to Domain. 594 selling under the hammer, 263 passing-in and 122 were withdrawn. This resulted in a preliminary clearance rate of 61%, a stronger clearance rate than I was expecting with all the uncertainty in the world and likely interest rate rise tomorrow. The sentiment in the Melbourne property market feels lacklustre which is opening up opportunities for some buyers with eased buying conditions.
The Victorian government has put forward another proposal (in addition to disclosing auction reserves prior to auction) where vendors are now to provide building and pest inspection reports for properties that are being sold. Building and pest inspections typically cost anywhere from $700 to $800 each and are an important part of a buyer due diligence. It is not uncommon for a diligent buyer to pay for two or three building inspections (sometimes more) in their purchasing journey.
The proposed legislation will require a vendor, as part of the vendor’s statement, to provide both a building and pest inspection report which would need to be completed within 3 months before the sale. This is currently legislation in the ACT and commonly provided by the vendor in NSW. Whilst I believe there is good intention with this legislation, I would be very cautious in relying on a report that is paid for, and therefore potentially favourable to the vendor. I would still encourage my clients have a building and pest inspection report produced by our trusted building inspectors who are very experienced and qualified to provide a unbiased opinion.
However, I do believe this legislation will encourage vendors to have more repair works completed prior to putting their properties on the market, and therefore some properties will be coming to market in a better condition than they would have prior. This is proposed for 2027 if the current government is re-elected.
The RBA (Reserve Bank of Australia) are tomorrow, due to announce their next interest rate move with many expecting another interest rate rise. This is due to high inflation, tight jobs market and now the concern of higher energy/fuel prices due to the Iran war. Whilst this potential interest rate rise didn’t seem to affect last weekend’s auction clearance rate, it can only help buying conditions in the immediate future.
Have a great week.
Kim Easterbrook – Managing Director
Hi,
Last weekend was a huge auction weekend in Melbourne with 1,634 properties going under the hammer. A very good test to see how the Melbourne property market is fairing. At this stage, 1,253 auctions have been reported to Domain. 827 properties sold, 147 were withdrawn and 279 passed in. The preliminary clearance rate is 66%. The same weekend last year, the clearance rate was 63% and final clearance rate for last week was 63%. The Melbourne property market is continuining to be stable after last month’s interest rate rise.
The federal government are considering changes to capital gains tax (CGT) concessions on residential property and negative gearing in the upcoming 2026-2027 budget which will be announced in May. The model reduces the CGT discount on investment properties from 50% to 33%. The goal is to raise $5 billion annually. Changes to negative gearing on property are also on the table.
The proposed changes to capital gains tax (CGT) would likely not apply retrospectively and would apply to housing only. For example, on a capital gain of $500,000 made on a residential property that had been held for more than 12 months, would result in an extra $33,000 to $40,000 tax payable (depending on your income).
The proposed changes to negative gearing involve limiting negative gearing tax breaks to a maximum of two investment properties per individual. Less than 10% of property investors have three or more residential properties. The proposal is targeting housing only which means some investors who already have a portfolio of properties, may opt to either buy commercial property rather than residential property, or could look at other ways to buy outside their personal name, whether that be in a company name or self-managed super fund.
These changes are not enough to considerably reduce the amount of residential property investors. But is simply a cash grabbing exercise from the federal government who are looking to recoup billions of dollars annually from all different areas and in no way will help with the issue of housing affordability or supply. If anything, it may result in rents increasing which would make it harder for renters (which will affect many first home buyers making it harder to save for their deposit).
Have a great week.
Kim Easterbrook – Managing Director
Hi,
Melbourne’s first Super Saturday for the year was a good test to see how the property market has reacted to the new year interest rate rise. There were 961 auctions reported to Domain with 635 selling, 231 passing in and 95 withdrawn resulting in a solid clearance rate of 66%. In comparison, the same weekend last year also resulted in a 66% clearance rate.
The property market seems to have bounced back somewhat from the initial interest rate rise shock a few weeks ago which is very much how the property market performed when interest rates were rising in 2022/2023. There was a pause from buyers when the interest rate rise was announced, and then back to a somewhat normal market a week or two thereafter.
We had a busy week last week successfully purchasing properties for five clients and missing out on two properties. All negotiations had competing buyers. The property market is still fast paced with some properties selling before the end of EOI or auction. Numbers at auctions and open for inspections on the weekend were high and the auctions we attended all had active bidding and all sold under the hammer.
An auction result worth mentioning. A huge auction result in Fitzroy North where a former milk bar sold for almost $1,000,000 over reserve. 558 Rae Street, Fitzroy North is an architecturally designed renovated period home on 549 sqm. The 4 bedroom 2 bathroom 1 living with a double garage was quoted $3,900,000 to $4,300,000 prior to auction. Five bidders competing to secure the property and the property had reached it’s reserve at $4,200,000 and sold for $5,100,000.
Have a great week.
Kim Easterbrook – Managing Director
Hi,
Melbourne’s Domain preliminary clearance increased to 68% over the weekend with 613 auctions being reported to Domain, 418 selling under the hammer, 72 withdrawn and 123 passed in. In comparison, the clearance rate for the same time last year was 66%.
The recent interest rate rise doesn’t appear to have put a dampener on Melbourne’s property market. Buyers are still engaged, some cautious but willing to transact. Many buyers had already factored in interest rate rises into their budgets so they are happy to continue on the property purchasing journey.
Interstate investors are still circling. Melbourne’s property prices really haven’t moved for a number of years, especially when comparing to cities like Perth and Brisbane which have experienced strong growth. Whilst Melbourne’s population is still on track to become the most populated city by 2031-2032, many are still viewing Melbourne as a good opportunity to invest in.
The opens for inspections and auctions I attended over the weekend generally had good numbers. The sun was shining, and people were out looking for their future home or investment property. Interestingly, the two auctions I attended, had active bidding from two and three bidders, but both passed-in (didn’t reach the vendor’s reserve price). One sold immediately after, the other didn’t. An auction of a renovated family home on a busy street had well over 100 people watching.
Although there was an initial shock when the interest rate rise was announced, the Melbourne property market seems to be holding up well. The auction clearance rate remains stable and even with the chance of one or two interest rate rises this year, it doesn’t appear to be holding buyers back.
Have a great week.
Kim Easterbrook – Managing Director
Hi,
There has been little change to Melbourne’s auction clearance rate after the Reserve Bank of Australia (RBA) increased interest rates by 0.25%. There were 464 auctions reported to Domain with 306 selling, 50 being withdrawn and 108 passing-in resulting in a preliminary clearance rate of 66%. Although there was a slight dip in the clearance rate achieved last week (70%), this is the same rate as it was for the same weekend last year.
The RBA last week raised the cash rate to 3.85% due to higher than expected inflation in the second half of 2025 and low unemployment. At this stage, this doesn’t appear to have greatly impacted buyer behaviour. In fact, most buyers who are actively searching have already taken into a account interest rate hikes.
Some buyers are also hoping this may weaken demand and therefore create less competition when trying to secure a property. Whether this happens or not is the unknown at this point. Regardless, housing demand remains strong and whilst population continues to grow in Melbourne, it will very likely continue to result in increased pressure on property prices and rents.
There have been some reports of very active bidding at some auctions on the weekend, with one example being 113 Whitby Street, Moonee Ponds which sold well above the reserve. The three bedroom, two bathroom, one living renovated home with one car park was under strong competition. The property was quoted at $1,400,000 to $1,500,000 prior to auction with five bidders participating in the auction. The property sold for $195,000 above reserve for $1,695,000.
Another auction on the other side of town at 8 Logan Court, Mentone also sold under the hammer with three upsizers participating in the auction. The four bedroom, three bathroom home renovated resort style home on 819 sqm sold for $1,765,000 which is at almost the same price for when it sold last at the peak of the market in March 2022 for $1,800,000.
Have a great week.
Kim Easterbrook – Managing Director
Hi,
Auctions are back and the Melbourne property market is almost back into full swing for 2026. It is great to be back and I am very much looking forward to helping buyers in 2026. Over the weekend, there were 416 auctions reported to Domain resulting in a clearance rate of 74%. Much stronger than the 61% clearance rate that was achieved for the same weekend last year.
There is a lot of talk around interest rates with all four major banks forecasting a 0.25% increase tomorrow to bring the cash rate to 3.85%. The Reserve Bank of Australia are meeting today and tomorrow to make the decision but an interest rate rise is highly likely is due to unemployment falling to 4.1% in December, headline inflation increased to 3.8%, core inflation rose to 3.3% and consumer spending increased by 2.8% in 2025.
The likely interest rate hike has not seemed to dampen the spirit of buyers at this stage, our enquiry from new buyers over the summer break has been reasonably strong which is usually a good indication of how active buyers are. There is definitely a feeling of buyers just wanting to get on with it. Investors are still circling, and owner occupiers are willing to transact. This also is reflected in the clearance rate from last weekend which is significantly higher than January last year.
PropTrack Home Price Index released their median price data for December reporting that the Melbourne median price dipped slightly by 0.3%. This slight dip is pretty reflective of a usual December market where vendors motivation to sell prior to Christmas are generally high, and therefore will drop their expectations in order to have their property sold.
So whilst there was a slight dip in prices in December and a looming interest rate rise this week, the Melbourne proprety market is still very stable. Buyers are interested and are purchasing, whether that be an investor, upsizer, downsizer or first home buyer. The amount of properties on the market is still low but this will increase over the next few weeks which will help to level out the market.
Have a great week.
Kim Easterbrook – Managing Director
Hi,
Surprisingly high auction numbers over the weekend with 1,198 auctions reported to Domain resulting in a preliminary clearance rate of 63%. 759 properties sold, 144 were withdrawn and 295 passed in. As a comparison, the clearance rate for the same weekend last year was 59%.
2025 has been a very interesting year for the property market in Melbourne. We have experienced three interest rate cuts totalling 0.75% in February, May and August. The RBA are meeting today and tomorrow to discuss the next interest rate move with most predicting that interest rates will remain on hold. The interest rate reductions have largely contributed to stronger interest from buyers this year and has resulted in a very active property market.
Property prices in Melbourne have increased in 2025… in fact, according to Domain, the median house price increased to $1,083,043 in the September quarter which is an annual increase of 6.2%. Units also increased to $580,878 for the same period which is an annual increase of 4.3%.
The rental market is also getting tougher for tenants with the median weekly rental price for units increasing to $575 to the September quarter. An annual change of 4.5% however houses have remained stable at $580 per week. The vacancy rate still remains tight at 1.4%.
Some recent changes to the residential tenancy laws were rolled out in November with rental providers no longer allowing to evict a renter for no valid reason, banning all types of rental bidding, window coverings now to have secured cords, notice periods to renters to be extended to 90 days and so on.
Property prices for 2026 will largely be influenced by interest rates. Inflation is running higher than expected so there doesn’t appear to be any mortgage relief coming in the near future. However, interest rate stability and strong population growth should still contribute to further property price increases in Melbourne in 2026.
This will be the final Melbourne property market wrap for 2025. From the team at Elite Buyer Agents, we wish you all a happy and safe holiday season.
Kim Easterbrook – Managing Director
