Domain’s preliminary clearance rate remained stable at 57% across 900 reported auctions (Super Saturday), with 511 properties sold at auction, 133 withdrawn and 256 passed in. By comparison, the clearance rate for the same weekend last year was 68%. The REIV also reported an additional 529 private sales.
While auction clearance rates are declining nationally, Melbourne’s auction market continues to show reasonable resilience. There is no doubt the property market remains highly price sensitive, with very few runaway results being achieved. Investor activity has declined significantly; however, owner occupiers remain active. Many properties are passing in at auction with multiple bidders before selling immediately afterwards through post auction negotiations.
As the Federal Government moves to legislate its proposed tax reforms, many investors have adopted a wait and see approach until there is greater certainty around the path forward. However, interest in commercial property is increasing, largely due to the ability to continue accessing negative gearing benefits.
Commercial property also offers a range of other advantages, including higher rental yields, strong historical capital growth with solid future capital growth potential, and tenants typically paying most outgoings such as council rates, water rates, land tax (in some circumstances), owners corporation fees and building insurance. In addition, commercial tenancy legislation is generally less restrictive than residential tenancy legislation.
Elite Buyer Agents has a dedicated commercial property division managed by David Easterbrook. Over many years, David has assisted clients in acquiring offices, industrial warehouses, factories, medical centres, retail premises and a broad range of other commercial assets.
We have already seen an increase in buyer enquiry and activity within the commercial property sector, and we expect this trend to continue should the proposed negative gearing reforms be legislated.
Have a great week.
Kim Easterbrook – Managing Director
Hi,
Domain’s preliminary clearance rate remained stable at 59% across 742 reported auctions, with 437 properties sold at auction, 116 withdrawn and 189 passed in. By comparison, the clearance rate for the same weekend last year was 68%. The REIV also reported an additional 497 private sales.
There is no doubt the Australian property market has faced a number of headwinds this year. First came an interest rate rise in February due to inflation remaining above the RBA’s target range. Then, at the end of February, Israel and the United States launched strikes targeting Iranian nuclear facilities, military infrastructure and senior leadership. This further contributed to inflationary pressures, resulting in two additional interest rate rises in March and May. The Federal Government’s Budget then introduced significant proposed changes to negative gearing and capital gains tax, creating further uncertainty across the property market.
All these headwinds have created considerable uncertainty, and buyers remain cautious. Many have decided to “sit on the sidelines” until confidence returns to the market. A number of buyers I have spoken with are now planning to recommence their property search in Spring.
This creates what I believe could be a very good winter buying market. We are already seeing an increase in off-market transactions, and clearance rates are likely to remain in the 50% range, which generally means fewer bidders competing across the board.
Savvy investors rarely wait for the market to rise before making their move. Both owner-occupiers and investors may therefore have a window of opportunity over winter to secure properties that may have been out of reach only a few months ago.
It has also been widely predicted that interest rates may remain on hold next month due to the unexpected rise in unemployment. If recent commentary from Donald Trump proves accurate — although that remains to be seen — a deal with Iran could be imminent and the Strait of Hormuz may reopen, which would help ease inflationary pressures and reduce the likelihood of further interest rate rises. Consumer confidence should also improve once the conflict subsides.
Over the next four weeks, the Federal Government will be working to legislate its proposed tax reforms. While it remains unclear exactly what changes will ultimately be implemented, by the start of July there should at least be greater clarity, allowing buyers and investors to begin adjusting to the new landscape.
Overall, by the end of winter, we should hopefully be on the other side of many of these headwinds, which in turn could help restore confidence to the property market. In my opinion, this may provide residential property buyers with a valuable window of opportunity throughout the winter period.
Have a great week.
Kim Easterbrook – Managing Director
Hi,
Domain’s preliminary clearance rate is sitting at 59% across 614 reported auctions, with 364 properties sold at auction, 83 withdrawn and 167 passed in. In comparison, the previous week’s preliminary clearance rate was 56%, with the final clearance rate coming in at 52% — the weakest result we have seen since 2022–2023. By comparison, the clearance rate for the same weekend last year was 70%.
Last week was a huge week for the Australian property market — although not for the right reasons — with the federal government announcing major proposed tax reforms, including limiting negative gearing to new builds and abolishing the 50% capital gains tax discount. The changes still need to be legislated, with draft legislation expected later this year.
During the federal election campaign, the government repeatedly stated that it would not make changes to negative gearing or capital gains tax. However, the Budget announcements have now confirmed significant changes, with the biggest one being the removal of negative gearing on established properties for purchases made after 7:30pm on 12 May 2026.
Importantly, the proposed changes are expected to be grandfathered, meaning existing investment properties should not be affected.
The government argues that the current tax system favours wealth built through property rather than income earned through work, that younger Australians are being locked out of home ownership, and that Australia’s housing crisis is worsening. While there is no doubt affordability is a major issue, this has been a problem for many years and certainly has not suddenly appeared since last year’s election.
The proposed negative gearing changes will likely make things harder for first-home buyers rather than easier. While the government believes the reforms may help slow future property price growth, they are not expected to significantly reduce property prices or solve the underlying affordability and housing supply issues.
The biggest issue we have is simple — we do not have enough homes. Australia’s population is growing faster than we are building properties, and that imbalance is what is driving much of the pressure in the market. Strong immigration has played a major role in this, not property investors.
Investors also play an important role in providing rental accommodation for people who cannot yet afford to buy. If investors are discouraged from purchasing established properties, future rental supply could tighten even further, which will place additional pressure on rents. First-home buyers are already dealing with rising interest rates and reduced borrowing capacity. If rents continue to increase as well, it becomes even harder to save for a deposit.
Another factor is that, because the legislation is expected to be grandfathered, it may not lead to an increase in established housing supply for first-home buyers anytime soon. In fact, many investors may choose to hold onto their existing properties if rental demand and rents continue rising strongly.
There is also growing discussion around homeowners retaining their current home as an investment property and then purchasing a new principal place of residence, which could further reduce the future supply of established homes available to buyers.
As a parent of young children, of course I would love to see future generations have a better opportunity to purchase property. However, I do not believe changing negative gearing is the answer. We need to increase housing supply and ensure population growth is occurring at a pace that our housing, infrastructure and services can realistically keep up with.
Interestingly, 48,000 permanent residents have accessed the federal government’s 5% deposit scheme since ‘permanent residents’ became eligible in 2023, representing around 20% of all users of the scheme since it began. How is this meant to help younger Australians purchase property?
Australia absolutely needs immigration and skilled workers, but migration levels need to remain balanced with our ability to deliver enough housing and infrastructure to support that growth sustainably.
Have a great week.
Kim Easterbrook – Managing Director
Hi,
Domain’s preliminary auction clearance rate has been recorded at 56% across 719 auctions. A total of 404 properties sold, 113 were withdrawn, and 202 were passed in. The clearance rate has now consistently remained in the 50% range since the start of March. In comparison, the clearance rate last year was 64%.
As expected, the Reserve Bank of Australia (RBA) raised interest rates by 0.25% to 4.35% because inflation is rising again and is expected to remain high for longer due to ongoing conflict in the Middle East and increases in oil prices.
The Federal Budget is also due to be released tomorrow evening, with rumours swirling that there will be property-related tax changes announced regarding reduced Capital Gains Tax discounts and negative gearing, although the specifics will not be confirmed until tomorrow night.
All these factors have created uncertainty in the property market, and conditions are favouring buyers. Melbourne has now become one of the most affordable capital cities in the country. However, Melbourne could face a worsening housing shortage due to the population continuing to rise and approved development projects not commencing because of uncertainty around building costs. Predictions of a further two rate rises, combined with ongoing global uncertainty, should keep buying conditions as they currently are, which is creating favourable conditions for buyers to enter the market.
Have a great week.
Kim Easterbrook – Managing Director
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
Hi,
Domain’s Melbourne auction preliminary clearance rate for last weekend has come in at 56%. Auction numbers were much smaller this week due to Anzac Day on Saturday. 151 auctions were reported to Domain, 85 properties sold, 22 withdrawn and 44 passed in. The clearance rate for the same weekend last year was 62%.
May 12th is the date the 2026-2027 Australian Federal Budget will be delivered and there is a possibility of tax reforms which will target investors. In addition, there be likely more support for first-home buyers and measures to assist increasing housing supply.
Tax items being discussed that are relevant to investors are Capital Gains Tax (CGT) discount changes and negative gearing reforms.
An investor, who has held their property for more than 12 months, is currently able to claim a 50% discount on their capital gains tax. The word is that the federal government is currently looking to decrease this discount to 33%, or even 25%. It is believed that this will only apply to residential investment properties and likely to be grandfathered so existing investors are not affected.
There are also rumours about a reform which may limit the amount of properties an investor owns that can be negatively geared. Also allowing only new builds to be negative geared, capping deductible losses and/or restricting it for higher-income earners are on the discussion table. Again any changes are believed to be grandfathered so existing investors are not affected.
First home buyers may be included and there is a chance that first home buyers may be able to access super for deposits, larger shared equity schemes and larger deposit guarantees.
Any changes that will negatively affect investors will likely result in lower rental supply and therefore increased rents. Melbourne’s rental vacancy rate is currently sitting at a very low 1.4% to 1.8%. The whole purpose of these tax changes is to help increase supply for owner occupiers (and some government revenue raising) and help first buyers enter the market. However, not all renters have the option of living with mum and/or dad whilst they save for a deposit and rents likely rising, it will take longer for buyers to save for their deposit.
The government should be looking at ways to incentivise investors who provide stability to the rental market rather than the ways to detract them from investing. It will be interesting to see what eventuates on May 12.
Have a great week.
Kim Easterbrook – Managing Director
Hi,
Domain’s Melbourne auction preliminary clearance rate for last weekend has come in at 58%. It was a huge auction weekend with 1,172 auctions reported, 676 selling, 97 withdrawn and 399 passed in. The REIV has reported there were an additional 416 private sales. In comparison, the clearance rate for the same weekend last year was 65%.
Cotality released their quarterly property price data which shows that Melbourne property prices have decreased by 0.2% in the Jan to Mar 26 period. This is the fourth month of property price decline with houses declining 1.1% from November last year and units by 0.4% (overall decrease of 0.9%). Whilst these numbers are not demonstrating large property price falls, some of the properties we have purchased over the past six weeks have been upto 10% below last years comparable sales. There are fewer and fewer properties selling well above their advertised property range, in fact, the last three properties I have purchased have been secured for under the bottom of the advertised price range. The current market conditions have allowed some buyers to secure superior properties than what they would have purchased last year.
Also as a result of the current market conditions, there has been an increase in off market activity due to some vendors not willing to spend thousands of dollars on marketing their property with the uncertainty of what their property will sell for.
How long these conditions will last? Of course, no one can answer that, and it is almost certain that we will see an interest rate rise next month which likely extend these conditions for a period of time thereafter. However, we can’t ignore that our population is still increasing and we are not building enough properties to house everyone which is creating pressure. And I do believe, when market sentiment improves, the Melbourne property market will bounce back strongly and buyers will be once again competing strongly to secure properties.
Have a great week.
Kim Easterbrook – Managing Director
Hi,
Whilst generally buyer sentiment is down, Melbourne’s auction clearance rate came in at a solid 59% on a huge auction weekend. A total of 1,324 auctions were reported to Domain, with 780 selling under the hammer, 186 withdrawn, and 358 passed in. I expect this clearance rate to decline once more auction results are reported; however, it does demonstrate the willingness of both buyers and vendors to transact in the current market. In comparison, the same weekend last year resulted in a clearance rate of 63%.
There is no doubt that there is a level of caution in the Melbourne property market, but with so many sales recorded, there is also a sense of people just ‘getting on with it’. This sentiment has come from both buyers and sellers. Buyers are cautious and are factoring in potential future interest rate rises, so run-away results are exceptionally scarce. Additionally, there is no “fear of missing out,” and buyers are willing to walk away from a property rather than overstretching themselves.
Vendors, on the other hand, in some cases are having to reduce their prices to meet the market. Properties that have not sold, generally have had interest from one or two buyers, but some vendors have dug their heels in and were not willing to “meet the market” on the day. Over time, they may need to reduce their prices in order to secure a sale.
Houses that are fully renovated, well located, and have a good floorplan are typically selling in line with comparable sales from last year. However, properties that require renovation, are in poor condition (i.e. knockdowns), or are located on main roads are selling around 5% to 10% below what comparable sales from late last year would suggest.
These are interesting times for the Melbourne property market. However, with 780 properties selling over the weekend and a further 601 private sales reported to the REIV, it does show that buyers and sellers are still willing to transact. In many cases, vendors are having to decrease their prices to get the deal done.
Have a great week.
Kim Easterbrook – Managing Director
Hi,
Another big auction weekend in Melbourne with 1,028 auctions reported to Domain. 609 properties sold under the hammer, 160 were withdrawn and 259 passed-in. The preliminary clearance rate for this weekend is sitting at 59% but will decrease a little after the remaining auction results are reported. The same time last year the clearance rate was 65%. The final Melbourne auction clearance rate for last weekend was 58% which is lower for the same weekend last year at 65%.
The combination of climbing interest rates and the Iranian war has created uncertainty in the Melbourne property market which has resulted in a declining auction clearance rate. The clearance rate is now indicating we are in a more balanced or slightly buyer-leaning market. Whilst this war continues, I am expecting the property market to be patchy and price-sensitive.
After analysing last weekend’s auction results, it really demonstrates where the majority of the buyers current are. The sub $2m property market was very active and if the vendor had realistic price expectations, the properties were selling on the day. Main road properties struggled with many passing-in, which is not unusual when the property market is patchy. The $2m to $5m price point is where things start to get wobbly. A lot more passed-in properties, mostly houses, which makes it a great time if someone was looking to upgrade into a larger home. Interestingly, some big sales last week with two properties in Toorak selling in excess of $10m.
Whilst market conditions are turning to be more favourable to the buyer, there is still genuine interest from buyers willing to transact now, but there is at times a disconnect between vendors price expectations and what buyers are prepared to pay. Even in the active sub $2m market, there weren’t really any ‘run-away’ results as such. Properties appeared to be selling where the comparable sales were suggesting they were worth.
I was successful purchasing a two bedroom, two bathroom, modern villa unit at auction on the weekend in Caulfield East but not without my work cut out. A very competitive auction with 5 bidders with more buyers in the crowd that didn’t put up their hand. However, whilst there was genuine interest, buyers had their limits and were not prepared to stretch past their budgets and the property sold for a price not too far past the vendor’s reserve and for an amount around what the property was actually worth.
Have a great week.
Kim Easterbrook – Managing Director
Hi,
A huge auction weekend in Melbourne with 979 auctions being reported to Domain. 594 selling under the hammer, 263 passing-in and 122 were withdrawn. This resulted in a preliminary clearance rate of 61%, a stronger clearance rate than I was expecting with all the uncertainty in the world and likely interest rate rise tomorrow. The sentiment in the Melbourne property market feels lacklustre which is opening up opportunities for some buyers with eased buying conditions.
The Victorian government has put forward another proposal (in addition to disclosing auction reserves prior to auction) where vendors are now to provide building and pest inspection reports for properties that are being sold. Building and pest inspections typically cost anywhere from $700 to $800 each and are an important part of a buyer due diligence. It is not uncommon for a diligent buyer to pay for two or three building inspections (sometimes more) in their purchasing journey.
The proposed legislation will require a vendor, as part of the vendor’s statement, to provide both a building and pest inspection report which would need to be completed within 3 months before the sale. This is currently legislation in the ACT and commonly provided by the vendor in NSW. Whilst I believe there is good intention with this legislation, I would be very cautious in relying on a report that is paid for, and therefore potentially favourable to the vendor. I would still encourage my clients have a building and pest inspection report produced by our trusted building inspectors who are very experienced and qualified to provide a unbiased opinion.
However, I do believe this legislation will encourage vendors to have more repair works completed prior to putting their properties on the market, and therefore some properties will be coming to market in a better condition than they would have prior. This is proposed for 2027 if the current government is re-elected.
The RBA (Reserve Bank of Australia) are tomorrow, due to announce their next interest rate move with many expecting another interest rate rise. This is due to high inflation, tight jobs market and now the concern of higher energy/fuel prices due to the Iran war. Whilst this potential interest rate rise didn’t seem to affect last weekend’s auction clearance rate, it can only help buying conditions in the immediate future.
Have a great week.
Kim Easterbrook – Managing Director
