Hi,
The Domain Melbourne auction clearance rate was 73% over the weekend with 834 auctions reported, 604 properties selling, 166 passing-in and 64 were withdrawn. In comparison, the clearance rate for the same time last year was 61%.
Over the past few weeks, there has been a lot of discussion regarding Melbourne property prices with many sources predicting an increase in the median house price for the remainder of 2025 and for 2026.
- KPMG predicts Melbourne house prices will rise 5.2% in 2025 and 6.6% in 2026 with unit prices to rise 4.4% in 2025 and 6.1% in 2026.
- Domain is predicting a 6% median house price increase and 5% median unit price rise in 2026.
- Westpac’s latest property forecast predicts a 4% rise in median house price this year and 10% in 2026.
Melbourne is leading the charge with predictions of long awaited price increases materialising as confidence in the property market builds at a quick pace.
The reasons for this is due to many factors including falling interest rates, increased buyer confidence, increased interest from investors (in particular interstate), population growth, construction slow down due to higher building costs, and Melbourne property prices not rising for many years due to Covid lockdowns and as a result, is now more affordable than many other capital cities in the country.
I attended multiple auctions on the weekend, all selling under the hammer, but one to mention is the huge result at 6 Bowen Street, Hawthorn. The four bedroom, two bathroom, one car park updated period home was quoted prior to auction for $2,200,000 to $2,400,000. Five bidders participated in the auction with the property being announced ‘on the market’ around $2,550,000 (but could have hit the reserve prior to that due to the momentum of the auction) with the final sale price being $2,920,000.
Have a great week
Kim Easterbrook – Managing Director
