Hi,
The Domain preliminary auction clearance rate bounced back last weekend, with 746 auctions reported. Of these, 358 properties sold under the hammer, 110 were withdrawn and 278 were passed in, resulting in a preliminary clearance rate of 56%. This is a slight improvement on previous weeks, where the final clearance rate had fallen into the high 40% range. The REIV also reported an additional 466 private sales.
The past two weeks have been a quieter period in the property market, largely due to the winter school holidays. Some schools return today, while others resume over the next week, so we should begin to see an increase in new property listings coming online. That said, due to the current softer market conditions (combined with the usual winter lull), the number of properties available for sale has declined. There are also higher levels of off-market properties than we would normally expect at this time of year, as some vendors lack confidence in achieving their desired sale price and would prefer to avoid spending thousands of dollars on advertising if they are unlikely to achieve the result they are hoping for.
As of 1 July 2026, new Anti-Money Laundering (AML) laws came into effect across Australia and now apply to all buyers and sellers of property. Both buyers and sellers must verify their identity before engaging the services of a buyer’s agent or selling agent. They will also be asked to provide information about the source of their purchase funds or deposit, while companies and trusts must disclose their beneficial owners. Higher-risk transactions may require additional documentation and enhanced due diligence. Importantly, if a buyer or seller is not using an agent to assist with the transaction, they are still required to verify their identity when buying or selling property.
Cotality has released the first housing market data since the Federal Budget was announced, with national home values falling by 0.4% in June. Sydney recorded the largest monthly decline, with values falling 1.2% (a 3.2% decline over the June quarter), followed by Melbourne, where values declined 1.0% for the month and 2.6% over the June quarter. While these softer conditions have created opportunities for some buyers to secure higher-quality properties that may have been out of reach just six months ago, there is growing concern for first home buyers who recently purchased using the Australian Government’s 5% Deposit Scheme. With only a small equity buffer, some recent purchasers are now facing negative equity as property values have declined.
Finally, as many predicted following the Federal Government’s changes to negative gearing and capital gains tax concessions for investors, rental prices are beginning to rise. Realestate.com.au’s June quarter data shows that Melbourne rents are now increasing at a faster rate than anywhere else in the country, with the median rent reaching $600 per week, representing a 3.5% increase over the quarter. In my view, this trend is likely to continue as the impact of these policy changes flows through the market, ultimately affecting the very people the reforms were intended to help.
Have a great week.
Kim Easterbrook – Managing Director
