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  At this stage, 1,253 auctions have been reported to Domain.  827 properties sold, 147 were withdrawn and 279 passed in.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

Hi,

The last big auction weekend for the year resulted in 1,185 auctions being reported to Domain with 793 selling, 118 withdrawn and 274 passed in.  The preliminary clearance rate is currently sitting at 67%.  In comparison, the same weekend last year resulted in a clearance rate of 59%.  There will be further auctions on the 6th and 13th of December and a handful of mid week auctions the week after before the industry closes down for the holiday period.

On the 25th of November, new rental property legislation took affect in Victoria which aims to improve property standards and increase tenants’ rights.

To breakdown some of these items:

• A property cannot be advertised until the property meets minimum standards, previously this could be completed whilst the tenant had moved in;
• Mandatory annual smoke alarm checks be conducted by licensed professionals;
• Ceiling insulation;
• External doors to have weather seals;
• Heating and cooling must be replaced with energy-efficient electric systems (eg. split system) when they cease working;
• Window coverings must have secure cords;

In addition to the minimum standards, there have been other changes some of which are:

• Ban rental bidding, so a landlord can no longer accept an offer higher than the advertised price;
• All notice to vacates must have a valid reason, eg. family/owner moving in, selling the property etc;
• Notice periods for notice to vacates and rent increases have been increased from 60 days to 90 days;

Whilst this legislation can lead to increased costs (mostly in the initial set-up stages), the updated minimum standards should also result in the property being safer and more pleasurable to live in and therefore (hopefully) reduce the turnover of tenants going in and out.

As there will be no option now for a landlord to accept a higher rent for a property than what was advertised, we may see some landlords initially ask for a higher rental price and then drop the price until a tenant is found.

Have a great week

Kim Easterbrook – Managing Director

Hi,

A huge auction weekend with 1,005 auctions reported to Domain and the preliminary clearance rate coming in at 65%.  657 properties sold, 133 were withdrawn and 215 passed-in.  In comparison, the clearance rate for the same time last year was 57%.  Whilst the clearance rate dropped slightly again over the weekend, the auction numbers were strong.  We attended 7 auctions and all were strongly contested with multiple bidders and all selling under the hammer.

Big headlines in the media last week about ‘underquoting’ and a proposed new auction system that could force vendors to advertise their reserve price 7 days prior to auction. This proposal will be presented to parliament by the Victorian government next year.

I don’t believe anyone will question the fact that ‘underquoting’ was still an issue but from what I have experienced first hand this year, that rising property prices were often the reason why properties were selling well above the advertised price rather than the property being underquoted.

That being said, from time to time we do see properties ‘passing-in’ above the advertised price or not being announced ‘on the market’ well and truly past the quoted price.  There have also been many occasions where the advertised price range has not been lifted after an pre-auction offer had been rejected.

The Victorian government are trying to make it fairer for buyers with the vendor’s being forced to be transparent and advertise their reserve price 7 days prior to auction.  However, there are issues with this strategy and I believe this may even lead some vendors to sell their property via a private sale or expressions of interest campaign, which brings us into a non-transparent method of negotiating which can be more complicated and misleading.

In addition to this, whilst the transparency may be a positive to understand where the vendor is at with price, it still has no reflection on what a property is worth and it is still up to the buyer to do their own due-diligence around that.

Whilst this method could reduce some buyers from wasting their time attending an auction they were likely never to buy, it also could disadvantage buyers by the vendor not having the opportunity to change their reserve prior to auction (increase but also decrease).  And how is this going to work in situations where there are multiple decision makers who don’t agree (eg. deceased estate or divorce)?

There are many questions being raised with this reform and I am unsure whether the proposed strategy is going to help.  There are other methods of negotiating available to agents that these new reforms will not cover.  Whilst auctions can be terrifying and difficult to navigate for some, what they do offer is transparency where you can visibly see where the buyers are at with price which all other negotiating methods do not offer.  It will be very interesting to see what transpires.

Have a great week

Kim Easterbrook – Managing Director

Hi,

The Domain auction clearance rate dipped last weekend to 66% as auction numbers continue to rise in Melbourne leading into Christmas.  Of 1,147 auctions reported to Domain, 752 sold, 266 passed in and 129 were withdrawn.

Whilst the clearance rate has dropped, Melbourne has experienced the most new listings to hit the property market since the highest level recorded in November 2021.  Rising property prices in 2025 have encouraged some vendors to put their properties on the market.

Whilst buyers are motivated and confident to buy, many are still happy to hold off until the right property comes along.  There isn’t a lot of ‘FOMO – fear of missing out’ in the market and that is mostly due to interest rates stabilising and not continuing to fall.  Many selling agents across Melbourne are reporting that they still feel the property market is still ‘patchy’.  That being said, properties that have been marketed and priced well are generally still attracting strong competition at auction.

This week will likely be the last week of new auction campaigns being released (a handful may launch next week) and then the odd private sale campaign will be launched before the property market virtually shuts down just before Christmas Day.  Selling agents will be working hard to sell all their stock prior to Christmas and this is the time that vendors are likely to reduce their price expectations in order to have their property sold before the Christmas break.

Have a great week

Kim Easterbrook – Managing Director

Hi,

The Domain Melbourne auction clearance rate has come in at 68% which is a solid result considering the high level of auctions that took place over the weekend.  984 auctions were reported, 670 sold, 214 sold and 100 were withdrawn.  In comparison, the same weekend last year resulted in a clearance rate of 59%.

Whilst the lack of interest rate cuts (including another ‘on hold’ call last week) seems to have slowed down the urgency for some buyers to purchase a property, Saturday’s rain did not stop buyers from attending open for inspections or bidding at many auctions.  Reports from many industry colleagues were consistent that open for inspections were very well attended and bidding at many auctions was competitive.

There are only two more weeks of auction campaigns and then some private sale properties will come onto the market before it quietens off for the Christmas break.  Whilst there are always off market properties available, the level of these increases from now until mid December as motivated vendors looking to sell next year may actually sell now.   Late last week we started to see an increase in these coming through.

Buying conditions over the next month should slightly improve whilst stock levels are higher and motivations of vendors are high (with many giving themselves a deadline of selling before Christmas).  As a buyers advocate, this is my favourite time of year to be buying with often the last two weeks before Chistmas being one of our busiest times of the year.

Have a great week

Kim Easterbrook – Managing Director