Melbourne recorded a Domain preliminary auction clearance rate of 58% for the week ending Saturday 10 October, up from 56% last week, but below 69% at the same time last year. This week’s preliminary rate may be revised down as further results are reported. Of the 710 scheduled auctions, 514 results were reported, with 297 properties sold, 78 withdrawn and 139 passed in.
While conditions are favouring buyers, the Melbourne property market is still active. We are seeing fewer bidders at most auctions, but properties are continuing to sell under the hammer. Buyers are being more selective and disciplined with their budgets, which makes realistic vendor expectations particularly important.
For buyers, reduced competition can provide greater room to negotiate. However, it does not mean every vendor will accept a low offer or that a good property will sit on the market waiting. Buyers still need to understand comparable sales and recognise value when an opportunity presents itself.
This coming weekend will be the first under the mandatory published reserve requirements, which apply to auctions and fixed-date sales held from 16 October. Vendors must disclose their reserve at least seven days beforehand. It will be interesting to see how those published figures influence buyer participation and bidding.
In some instances, I believe this will work well. Motivated vendors who set a realistic reserve can give buyers confidence that the property is genuinely available within their budget. That clarity may encourage participation and help achieve a sale.
Others may try to retain the upper hand by setting their reserve high, leaving room for negotiation. The risk is that an ambitious reserve discourages buyers before auction day, reducing competition rather than strengthening the vendor’s position.
I am expecting more negotiations following passed-in auctions. However, a pass-in does not necessarily mean a property will remain unsold. In many instances, I expect a sale to be negotiated immediately afterwards, once the buyer and vendor have an opportunity to work towards an agreed price.
I am also seeing more properties coming onto the market to be sold via private sale, which is no surprise. As vendors and agents adjust to the new requirements, some will favour the flexibility of a private sale campaign over an auction.
The coming weeks will give us a clearer picture of how these changes affect selling strategies. For now, buyers have opportunities, transactions are still taking place, and realistic pricing remains central to achieving a result.
Melbourne recorded a Domain preliminary auction clearance rate of 56% for the week ending Saturday 3 October, compared with 66% at the same time last year. Of the 714 scheduled auctions, 507 results were reported, with 283 properties sold, 79 withdrawn and 145 passed in. Highlighting the current push away from auctions, the REIV reported an additional 535 private sales across Victoria for the week.
October has brought changes to Victoria’s residential property sales laws, with new requirements around advertised prices, auction reserves and the disclosure of sold prices.
Reserve prices must be published before auction
For auctions and fixed date sales held from 16 October 2026, selling agents must publish the seller’s reserve price at least seven days beforehand.
The reserve must be advertised as a single dollar amount and included in the Property Price Statement (PPS). An auction or fixed date sale cannot proceed unless the reserve has been published for the full seven-day period. Fixed date sales include methods where buyers must submit offers by a specified date and time.
The intention is to give buyers greater clarity about the seller’s expectations before they commit to inspections, contract reviews and auction preparation.
However, publishing a reserve does not necessarily mean that the reserve is realistic, nor does it necessarily have any relevance to the value of the property. I have concerns that some vendors will set their reserve prices high to allow them more room to negotiate, as the published reserve may, in some instances, cap the amount a buyer is prepared to pay for a property.
This could very well result in buyers not participating in or attending an auction if they consider the reserve to be above market value or beyond their budget. With fewer bidders competing, I believe we could see more properties passed in.
Knowing the reserve also does not guarantee a purchase at that price. Strong competition can still push the result higher than this level.
I also expect there will be a greater push by some agents and vendors towards private sales, particularly where sellers are reluctant to disclose their reserve or commit to it in advance.
This could have an unintended consequence: more properties being sold through a process that is less transparent than a public auction. At a public auction, buyers can see competing bids and follow the price as it rises. In a private negotiation, buyers usually have less visibility over competing offers, their conditions and how their own offer compares.
Private sales can work well, but buyers are more reliant on information communicated by the selling agent. If these reforms encourage a shift away from auctions, we could gain transparency around published prices while losing some visibility and transparency over the negotiations themselves.
This is something I will be watching closely as the new requirements take effect.
Property Price Statement
The Statement of Information is being replaced by a Property Price Statement, which must include more detail about the property and the comparable sales supporting its price estimate.
Required features include bedrooms, bathrooms, car spaces, internal floor area and land size. The statement must also be displayed or linked prominently beside the advertised price on the main online listing.
Agents must consider the three most comparable sales. If only one or two qualifying comparable sales are available, those must still be considered, with an explanation of why fewer than three were identified.
This should help buyers assess the comparable sales more closely, although differences in condition, renovation quality, position and layout still require careful consideration.
Sold prices must now be published
From 1 October 2026, agents must publish the final sale price in the Property Price Statement within seven days of a sale becoming unconditional. The statement must remain publicly available online for at least 18 months.
This also applies to residential properties sold off market through an agent. Limited exceptions include certain agency agreements entered into before 1 October containing a non-disclosure term, as well as approved exemptions relating to family or personal violence.
This is a positive step and gives buyers and vendors greater access to information to help them understand the value of their own property or the property they want to purchase.
What does this mean for buyers?
I welcome reforms that give buyers better access to reliable information. However, I am not convinced that publishing reserves will necessarily deliver better results, particularly if high reserves discourage buyerr participation or more vendors move towards private sales.
Whatever the method of sale, buyers should assess value independently, complete their due diligence and establish a clear buying limit.
Have a great week.
Kim Easterbrook – Managing Director
The Melbourne property market continued through the third weekend of spring with a preliminary Domain auction clearance rate of 57% from 913 scheduled auctions. Of the 659 results reported, 374 properties sold, 80 were withdrawn and 205 passed in. The REIV also recorded 461 private sales across Victoria. Auction volumes were higher ahead of the AFL Grand Final long weekend, when fewer auctions are traditionally held. In comparison, the clearance rate for the same weekend last year was 71%.
Melbourne is increasingly operating as a two-speed market. Good quality properties in desirable locations that are presented, marketed and priced correctly are continuing to attract competition. In comparison, properties with compromises or unrealistic vendor expectations are generally taking longer to sell, with buyers carefully assessing value and showing little urgency unless the property and price are right.
The contrasting auction results over the weekend demonstrated this clearly. At 54 Croydon Road, Surrey Hills, three bidders competed for the property, which was declared on the market at $1.985 million and sold under the hammer for $2.105 million. By comparison, 1 Arkaringa Crescent, Black Rock, received no bids and was passed in. The four bedroom home is now for private sale with an asking price of $2.3 million to $2.375 million. These results show that buyers are still prepared to compete when they see value, while other properties can struggle to attract a single bid.
Attention will now turn to the Reserve Bank’s next interest rate decision on 29 September, with all four major banks forecasting a further 0.25 percentage-point increase. Another rise would place additional pressure on mortgage repayments and borrowing capacity and may cause some buyers to reduce their budgets while others will likely delay their purchasing decisions. However, the impact is unlikely to be consistent across the market, with scarce, high-quality properties expected to continue outperforming those with compromises.
At the same time, new home sales in Victoria fell by 27% over the three months to August, the largest decline recorded by any Australian state. While higher interest rates may weaken buyer demand in the short term, reduced construction activity risks placing further pressure on Melbourne’s underlying housing shortage. For financially prepared buyers, the current two-speed market is creating opportunities, but the weekend’s results show that competition can still be strong when a good property is priced appropriately and marketed well.
The Melbourne property market finished winter with a preliminary Domain auction clearance rate of 60% over the weekend, from 456 reported auctions. Of these, 274 properties sold, 62 were withdrawn and 120 passed in. This compares with a clearance rate of 70% for the same weekend last year. The REIV also reported another 477 private sales for the week.
The property market is still producing very mixed results. Good quality properties in good locations are attracting buyers and, when priced correctly, can still be very competitive. Properties with compromises or unrealistic vendor expectations are a different story and are generally taking longer to sell.
Last week, legislation was passed in Victoria introducing a number of changes relating to vendors’ reserve prices, Section 32 statements, Section 27 and Statements of Information (SOIs).
Firstly, from 1 October 2026, vendors selling by auction or fixed-date sale will need to publish their reserve price at least seven days before the sale. If the reserve isn’t disclosed within the required timeframe, the property won’t be able to proceed to auction. The advertised price will also need to reflect the disclosed reserve.
There are certainly pros and cons to this. While I support greater price transparency and measures aimed at reducing underquoting, I think there could also be some unintended consequences.
There is nothing stopping a vendor from setting their reserve higher than what they may ultimately be willing to accept on auction day or at a sale by set date (SBS). We could potentially see some of the issues around underquoting replaced with overly ambitious reserves, as vendors try to protect their negotiating position.
It may also encourage more vendors to sell prior to auction or SBS day, particularly if they receive an acceptable offer before their reserve needs to be publicly disclosed. Alternatively, some vendors may choose to sell by private sale instead. Both scenarios can pull buyers back into a less transparent negotiation process where they don’t necessarily know what other buyers are offering.
Also from 1 October 2026, the Statement of Information (SOI) will be renamed the Property Price Statement (PPS) and will need to include key features of the property being sold, as well as the key features of each comparable property.
The sale price of a residential property will also need to be added to the PPS within seven days of the sale becoming unconditional, unless an exemption applies. The PPS will then need to remain publicly available online, free of charge, for at least 18 months.
I think this is a positive change and will give buyers much better access to recent comparable sales information, particularly where properties have previously been advertised as “price undisclosed”.
From 1 June 2027, there will also be significant changes around the availability of Section 32 statements. For properties being sold by auction or fixed-date sale, the Section 32 will need to be available at least 14 days before the sale. The legislation also introduces earlier disclosure requirements for properties being sold by other methods.
Giving buyers more time to have contracts reviewed and complete their due diligence is a positive thing, but I am interested to see how this is going to work in practice. We regularly see properties bought and sold very quickly, sometimes within days of coming onto the market, so this could have quite an impact on the way some properties are sold.
Also from 1 June 2027, the existing Section 27 early deposit release process will be repealed and replaced with a new process. Early release of a deposit will still be possible where it has been agreed between the parties as part of the contract of sale.
The changes will also restrict the circumstances in which selling agents can take their commission from the deposit before settlement. I am not sure what advantage this particular change provides to either vendors or buyers. For example, some property transactions have settlements of 12 months or longer. If an agent has to wait until settlement to be paid their commission, there may be less incentive for them to encourage or accommodate a longer settlement, even when those terms suit both the vendor and purchaser.
There are certainly a lot of changes ahead. Some I think will be very positive for buyers, while others may have consequences that are perhaps not as favourable.
We probably won’t really understand the full impact until the new rules have been operating for a while, but it will certainly be interesting to see how the property industry, vendors and buyers adapt.
Have a great week.
Kim Easterbrook – Managing Director
The Domain preliminary auction clearance rate came in at 57% over the weekend, from 405 reported auctions. Of these, 230 properties sold under the hammer, 61 were withdrawn and 114 passed in. This is down from the 70% final clearance rate recorded for the same weekend last year and the 60% final clearance rate recorded last weekend. The REIV also reported another 556 private sales.
Ray White Victoria released some interesting data last week showing that 16% of buyers at their Melbourne auctions were investors, while 30.5% of sellers were landlords selling their investment properties. This supports what we are seeing on the ground, with significantly more investors selling than buying.
The investor exodus started in 2023 and continued into 2024, following changes to land tax, rising interest rates and changes to the Residential Tenancies Act.
Last year, we started to see this trend turn around. Investors were once again considering Melbourne due to the relative affordability of property compared with other capital cities around the country. However, since the Federal Government announced its proposed changes to negative gearing and capital gains tax in May, we have seen investor confidence take another hit.
The low level of investor activity is a real concern for renters if we continue to see more landlords selling than investors buying. The Federal Government is incentivising investors to purchase brand-new properties; however, I am yet to see much appetite from investors wanting to do this. What I am seeing instead is investors simply putting their plans on hold and not buying anything at all.
According to PropTrack, Melbourne rents increased by 3.5% over the June quarter, taking the median advertised rent to $600 per week.
I expect rental pressure to continue throughout the remainder of this year, particularly if the number of investment properties available for rent continues to decline. This will likely see rental yields improve as rents increase while property prices remain soft.
It will be interesting to see whether improving rental yields are eventually enough to entice investors back into the Melbourne market, or whether uncertainty around the proposed tax changes continues to keep them on the sidelines.
For investors prepared to look beyond the current uncertainty, there may be an opportunity in Melbourne. Property prices remain relatively affordable compared with several other capital cities, competition from other investors is low and rising rents are helping to improve rental yields. For investors with a long-term outlook, softer market conditions can also provide an opportunity to buy well before confidence and competition eventually return.
Have a great week.
Kim Easterbrook – Managing Director
The Domain preliminary auction clearance rate came in at 63% over the weekend, from 473 reported auctions. Of these, 297 properties sold under the hammer, 62 were withdrawn and 114 passed in. This is down from the 70% final clearance rate recorded for the same weekend last year. The REIV also reported another 609 private sales.
There has been a lot of talk in the media over the past 24 hours about Melbourne’s auction clearance rate, which has reached its highest level since 17 March. There have also been plenty of reports of active bidding at auctions, with some agents reporting three to four active bidders and more properties selling under the hammer rather than passing in.
According to Cotality, Melbourne recorded the strongest preliminary auction clearance rate of any capital city across the country over the weekend.
While the clearance rate is a positive sign, it cannot be used as the only indicator of the health of Melbourne’s property market. Some agents are now opting for Expression of Interest campaigns and private sales rather than taking properties to auction. It could also be a sign that vendors are becoming more willing to meet the market and adjust their price expectations in order to get their property sold. However, the REIV’s 609 reported private sales last week is also a relatively high number compared with other weeks in 2026, which adds some weight to the improved results we saw over the weekend.
Today marks the deadline for buyers to use lending to purchase residential property through self-managed super funds, so some of the recent increase in activity may also be associated with buyers trying to transact ahead of this deadline.
We will be watching the results closely over the coming weeks. As I have previously mentioned, I believe we could be at, or very close to, the bottom of the property cycle here in Melbourne. One stronger weekend doesn’t establish a trend, but the combination of a higher clearance rate, stronger private sales numbers and reports of increased competition between buyers is certainly worth watching.
On another note, the RBA will announce tomorrow whether interest rates will rise or remain on hold. Most economists are expecting rates to remain on hold, and a further increase this year is now looking less likely than likely. Tomorrow’s decision, and particularly the RBA’s commentary around the outlook for inflation and future rates, could have a further impact on sentiment in the property market.
Hi,
The Domain auction clearance rate came in at 59% over the weekend from a reasonable number of auctions. There were 373 auctions reported, with 221 properties selling under the hammer, 65 withdrawn and 87 passed in. That’s down from the 66% final clearance rate recorded for the same weekend last year. The REIV also reported another 412 private sales.
Cotality has released its July 2026 property price data, and it’s not only Melbourne and Sydney experiencing price falls, but now Brisbane and Adelaide as well. Sydney recorded the largest quarterly fall at 1.4%, followed by Melbourne at 1.2%, Brisbane at 0.6% and Adelaide at 0.2%.
However, this is not occurring evenly across all segments of the property market. It is the upper-end family home market that has been most affected, while more affordable properties are still selling well and generally under strong competition.
Sentiment in the property market has deteriorated and many buyers are still sitting on their hands. While the Federal Government introduced measures aimed at helping first home buyers, the major banks are reporting a noticeable decline in home loan approvals, with first home buyer applications being among the hardest hit. Investor loan applications are also well down and, despite the Federal Government’s incentives for investors to purchase newly built properties, many investors appear to be delaying purchasing decisions altogether.
There was, however, some encouraging news last week. The latest inflation figures came in better than expected, making another interest rate rise look less likely than it did only a few weeks ago. While another increase cannot be ruled out, there is a chance that we have reached the peak of the interest rate cycle. That should provide some much-needed stability for buyers and sellers alike.
Looking ahead, there are a couple of reasons for cautious optimism. The prospect of a change in the Victorian Government later this year, together with the recent change in Premier, could improve confidence in the state. If that occurs, combined with greater certainty around interest rates, my feeling is that the next three to four months could present some of the best buying conditions we’ve seen for some time before prices begin to rise again, which could be as early as February next year.
Have a great week.
Kim Easterbrook – Managing Director
Hi,
The Domain auction clearance rate came in at 55% over the weekend from a solid number of auctions. There were 469 auctions reported, with 257 properties selling under the hammer, 94 withdrawn and 118 passed in. That’s well down on the 72% final clearance rate recorded for the same weekend last year. The REIV also reported another 412 private sales.
Domain also released its latest House Price Report last week, showing Melbourne’s median house price fell 3.1% over the June quarter to $1,045,205, while the median unit price remained relatively stable at $587,137.
Melbourne’s median house price is now below Sydney, Brisbane, Adelaide and Perth, which I find astonishing. But there is no doubt Melbourne has faced some significant headwinds over the past five years, and many of those challenges remain while the current state government is in office.
So, have we reached the bottom of the property cycle?
I think we’re getting close, but I’m not convinced we’re quite there yet.
A lot will come down to what happens with interest rates next month. At the moment, I’d say the chances of another rate rise are about 50/50.
The RBA has made it clear it remains committed to bringing inflation under control, and the June quarter CPI figures, due to be released this week, will have a significant influence on its decision on 11 August.
My feeling is that if we do get another interest rate rise, it could mark the period where Melbourne finds the bottom of the cycle. If rates remain unchanged, then there’s every chance we’ve already reached it.
The truth is, no one knows exactly where the bottom of the market is until after it’s happened. By the time everyone agrees the market has turned, prices have usually already started moving.
What I can say is that buying conditions are as good as they’ve been for a long time. Buyers have more choice, greater negotiating power and less competition than we’ve seen for several years. If you’re a first home buyer, investor or upsizer, I think the current market presents some excellent opportunities.
Once interest rates stabilise, the Victorian election is behind us and confidence begins to return, I believe Melbourne’s property market will start to wake up again. It won’t happen overnight, but confidence has a habit of returning much quicker than most people expect.
Have a great week.
Kim Easterbrook – Managing Director
Hi,
We are continuing to see slow improvement in Domain’s preliminary auction clearance rate, with 396 auctions reported over the weekend. Of these, 232 properties sold under the hammer, 48 were withdrawn, and 116 were passed in, resulting in a preliminary clearance rate of 59%. Last week’s final clearance rate was 52%. The REIV also reported an additional 445 private sales.
The Victorian State Government has indicated it intends to make significant changes to the way property is sold in Victoria. The Government argues these reforms are designed to provide buyers with greater transparency and disclosure.
Firstly, subject to the legislation being passed, reserve prices will need to be published at least seven days before an auction or a fixed-date sale (such as an Expressions of Interest campaign or an Offers Closing campaign). These changes are proposed to commence on 1 October 2026.
Whilst, in theory, this is intended to address the issue of underquoting, there are some significant concerns that could actually make it more difficult for buyers. It is also likely that many vendors will pivot away from auction campaigns and fixed-date sales altogether.
Whilst there has undoubtedly been an issue with underquoting in the past, I have always been a supporter of auction campaigns because they provide transparency. Buyers can see exactly who they are competing against and where the market is placing value on a property (in most cases).
Publishing the reserve price removes a vendor’s ability to change their reserve price, which happens regularly based on previous offers, buyer competition, and changing market conditions. It could also discourage buyers from attending the auction altogether, which, in turn, will reduce competition for the property. These unintended consequences may persuade vendors to look at other methods of selling, such as private sale, which can be much more difficult to navigate due to the lack of transparency and the inability to see the competition buyers are up against. This visibility is one of the key advantages of an auction.
Secondly, the Government also proposes that no contract can be entered into until at least 14 days after the Section 32 Statement is first made available. I am genuinely confused as to who this is intended to help and why this proposal is even being considered. The Government argues that this will give buyers more time to complete their due diligence and seek legal advice without feeling pressured to sign a contract.
However, time can also be the enemy. Buyers change their minds. Vendors change their minds. More buyers can enter the market, creating additional competition. Timing can be everything in a negotiation and can often work to a buyer’s advantage. Remove that flexibility, and a buyer who was ready to proceed may ultimately miss out on the property for a range of reasons.
The State Government needs to understand what actually happens on the ground in the real estate industry. Whilst its intentions may be to help buyers, I don’t believe either of these proposed reforms will achieve that outcome. In fact, they may simply make it harder for buyers to purchase property.
Have a great week.
Kim Easterbrook – Managing Director
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
