Hi,
Domain’s preliminary auction clearance rate has been recorded at 59% across 888 auctions. A total of 524 properties sold, 113 were withdrawn, and 251 were passed in. This is still a solid result considering the large volume of auctions held. In comparison to last year, the figures are quite different, with the clearance rate at 70%.
Cotality released its property price data for April, reconfirming that the Melbourne property market is cooling and in a mild downturn. Melbourne’s property prices fell by 0.2% to a median price of $828,249. Houses fell by 0.4% in April to $982,876, while units increased by 0.3% to $644,074.
This is consistent with what we are seeing on the ground, with houses experiencing less demand due to higher price points and affordability constraints. Units, however, are showing resilience due to their relative affordability. Interestingly, annual price growth for houses is 4.0%, compared to 2.0% for units, demonstrating that houses are more stable over the long-term, while units show greater short-term resilience.
While short-term property prices have ‘marginally’ declined, Melbourne’s annual price growth remains positive. The declines are minimal, and the property market has remained relatively stable despite global uncertainty.
This month, more challenges may come into play, with interest rates ‘likely’ to increase by the Reserve Bank of Australia (RBA) tomorrow, and the Federal Government’s 2026-2027 Budget being released next week, which may impact property investors. If changes to tax incentives are announced and come into effect on July 1, we may see a short-term uptick in investor activity until the end of the financial year.
Have a great week.
Kim Easterbrook – Managing Director
