Hi,
The Domain Melbourne auction clearance rate was 73% over the weekend with 834 auctions reported, 604 properties selling, 166 passing-in and 64 were withdrawn. In comparison, the clearance rate for the same time last year was 61%.
Over the past few weeks, there has been a lot of discussion regarding Melbourne property prices with many sources predicting an increase in the median house price for the remainder of 2025 and for 2026.
- KPMG predicts Melbourne house prices will rise 5.2% in 2025 and 6.6% in 2026 with unit prices to rise 4.4% in 2025 and 6.1% in 2026.
- Domain is predicting a 6% median house price increase and 5% median unit price rise in 2026.
- Westpac’s latest property forecast predicts a 4% rise in median house price this year and 10% in 2026.
Melbourne is leading the charge with predictions of long awaited price increases materialising as confidence in the property market builds at a quick pace.
The reasons for this is due to many factors including falling interest rates, increased buyer confidence, increased interest from investors (in particular interstate), population growth, construction slow down due to higher building costs, and Melbourne property prices not rising for many years due to Covid lockdowns and as a result, is now more affordable than many other capital cities in the country.
I attended multiple auctions on the weekend, all selling under the hammer, but one to mention is the huge result at 6 Bowen Street, Hawthorn. The four bedroom, two bathroom, one car park updated period home was quoted prior to auction for $2,200,000 to $2,400,000. Five bidders participated in the auction with the property being announced ‘on the market’ around $2,550,000 (but could have hit the reserve prior to that due to the momentum of the auction) with the final sale price being $2,920,000.
Have a great week
Kim Easterbrook – Managing Director
Hi,
The Domain Melbourne auction clearance rate was 73% over the weekend with 749 auctions reported, 547 properties selling, 124 passed in and 78 were withdrawn. In comparison, the clearance rate for the same time last year was 60%.
Buyers braved the freezing conditions over the weekend and there were strong attendances at many auctions. Interestingly, we had four auctions on Saturday with two of them passing in, one selling exactly where it should have and the other was a runaway result. This is what we are witnessing all across Melbourne. Mixed results but most properties selling, even after it passes in. This just means vendors have needed to adjust their price expectations and meet the market.
However, we are noticing more and more runaway results and some sale prices have been very high. A two bedroom house in Albert Park sold $600,000 over reserve, another home in Williamstown sold $515,000 over the top of the quoted price range with six bidders, a house in Bayswater sold more than $260,000 over reserve with 7 bidders, a house in Frankston sold $260,000 with five bidders and the list goes on.
As confidence grows in the Melbourne property market, so does to the amount of buyers willing to transact, which has dramatically increased since last year. That being said, there are still a number of buyers who are sitting on their hands and waiting until next year to buy. My feeling is that these buyers might miss an opportunity as prices rise. Currently, we are seeing a mixed bag of results, some high prices but the odd good buying opportunity is still presenting itself.
Have a great week.
Kim Easterbrook – Managing Director
Hi,
The Domain Melbourne auction clearance rate was a strong 75% on the weekend with 721 auctions reported, 543 properties selling, 125 passed in and 53 were withdrawn. In comparison, the clearance rate for the same time last year was 60%.
This was a solid result considering the auction numbers were higher although results are still somewhat a mixed bag. Properties that have no compromises are selling very well but properties that are compromised in some way are somewhat price sensitive.
I attended three auctions on Saturday of which two passed-in and one sold $200,000 over reserve. The property that sold $200,000 over reserve was a two bedroom, one bathroom unit on its title with no shared driveway in a great location. This had two older couples really stretching to try and secure it.
The other two that passed in were both in A Grade locations (one in South East and the other Inner North), one whilst liveable, neat and tidy, needs a structural renovation and the other had rectifiable issues with the floors. That being said, both auctions still attracted multiple bidders but the interested buyers were price sensitive as they needed to factor in work, and vendors needed to lower their expectations to sell, which they all did. Both properties sold immediately after the auction.
My feeling is that the property market is still somewhat price sensitive unless a property is ticking all the boxes. That means, A grade location, quiet street, close to shops and transport, good floorplan, in very liveable or renovated condition. Affordability is coming into play and buyers generally just don’t have the capacity to push their budgets like they used to when interest rates were lower. It will take a few more interest rate cuts I believe to ease this pressure. In the meantime, property prices are likely to continue to steadily increase as buyer demand and confidence rises.
Have a great week.
Kim Easterbrook – Managing Director
Hi,
Domain’s preliminary Melbourne auction clearance rate for the weekend has come in at 73%. 648 auctions have been reported, 470 selling, 47 withdrawn and 109 passing in. As a comparison, the Domain clearance rate for the same time last year was 60%.
Last week we saw the Reserve Bank of Australia cut interest rates by 0.25%. Usually, with every interest rate cut that we have, we experience an immediate increase in ‘new buyer enquiry’ from both investors and owner occupiers. However, last week the burst in enquiry did not happen albeit we continued to see consistent enquiry come through. This could mean that some buyers could have already been factoring in that interest rate cut and did not wait for this announcement to commence their search.
Also I feel the auction results over the weekend were a bit of a mixed bag, some selling strongly and others not so strong. These could be positive signs that we are not entering into a ‘booming’ market but more a property market with ‘slow and steady’ price growth which is much more sustainable. Interstate investor enquiry is still strong and we are seeing more and more families moving to Melbourne from Sydney where properties are more affordable yet good job prospects are available.
The buyer sentiment has improved considerably and we are in a totally different market than what we were 12 months ago. However, at this stage there isn’t any FOMO (fear of missing out) in the property market and buyers are generally being firm with their budgets. It may take another interest rate cut or two before this changes.
Have a great week.
Kim Easterbrook – Managing Director
Hi,
Domain’s preliminary Melbourne auction clearance rate for the weekend has come in at 73%. 552 auctions have been reported, 402 selling, 41 withdrawn and 109 passing in. As a comparison, the Domain clearance rate was 61%.
Tomorrow, the Reserve Bank of Australia will announce whether they intend on cutting interest rates after the surprise ‘rates on hold’ announcement last month. The board wanted to see the result of the ABS’ inflation data for the June quarter before making a decision, which was released at the end of last month. Inflation fell to 2.1% and ‘trimmed mean’ fell to 2.7%. This confirms inflation is under control and whilst unemployment remains low, it did rise in June from 4.1% to 4.3%, this ‘should’ be enough for the RBA to decide to reduce interest rates. And if not, I believe there would be a huge uproar from mortgage holders.
What does this mean for property prices? Interest rate cuts historically result in increased confidence the property market which inturn results in property price growth. There are more people attending open for inspections, more buyers bidding at auction and we are currently seeing slow and steady property price growth in Melbourne.
Some interesting data released from KPMG last week suggests that the Melbourne property market will be the top-performing city for property price growth in 2026 finally ‘waking up’ from the pandemic. They also believe due to affordability issues, that units might outperform houses. There is no argument that affordability will come into play with long term property performance and due to Melbourne’s housing market being unaffordable for many, this also may mean that more people move to regional areas that are a commutable distance to Melbourne such as Geelong.
Have a great week.
Kim Easterbrook – Managing Director
Hi,
Domain’s preliminary Melbourne auction clearance rate for the weekend has come in at 71%. 524 auctions have been reported, 372 selling, 51 withdrawn and 101 passing in. The clearance rate has been consistently in the low 70%’s for a number of weeks now. In comparison, the clearance rate was 57% for the same weekend last year.
The June quarter inflation data that the RBA was waiting for has now been released with inflation dropping again from 2.4 to 2.1 per cent. The RBA prefer to look at ‘trimmed mean’ inflation which dropped from 2.9 to 2.7 per cent. Unemployment has risen from 4.1 to 4.3 per cent. These results make it highly likely that there will be a interest rate cut when the RBA board meet next week.
We have consistently seen an immediate improvement in the property market after each interest rate has occurred, and I don’t believe this one will be any different. The good news is that we are seeing ‘slow and steady’ property price rises and not price growth that is unsustainable.
School is back, the sun is shining and the weekend’s open for inspections were busy. Confidence is back in Melbourne and we are expecting a busy second half of the year with stock levels rising and buyers willing to transact.
Have a great week.
Kim Easterbrook – Managing Director
Hi,
Domain’s preliminary Melbourne auction clearance rate for last weekend is currently sitting at 76%. Each week the clearance rate has been nudging higher and higher demostrating strength in the Melbourne property market. 576 auctions were reported with 415 selling, 36 withdrawn and 125 passing in. The auction clearance rate for the same time last year was 54%.
The Domain House Price Report for the June 2025 quarter has been released with Melbourne median house price increasing by 2.3% ($23,585) to $1,063,719. Units are also performing strongly with a quarterly increase of 2.7% to $573,600. Declining interest rates, increased confidence in the Melbourne property market and a lack of stock for sale have been the driving forces.
The median house price has not reached the peak of the market (which was in December 2021) but being only $29,000 off this number, it doesn’t seem long until Melbourne will reach an all time high median house price.
The ‘on hold’ interest rate announcement last month was likely what the property market needed to keep it from entering into a booming market and keep the price growth a more sustainable ‘slow and steady’ pace. The next Reserve Bank of Australia meeting is scheduled for the 11th and 12th of August and it seems the interest rate decision will largely be based on the results of the June 2025 quarter inflation data from the Australian Bureau of Statistics.
Have a great week.
Kim Easterbrook – Managing Director
Hi,
Last weekend, the Domain auction clearance rate for Melbourne came in at 74% on 490 auctions reported. 363 sold at auction, 41 were withdrawn and 86 properties passed in. The same weekend last year resulted in a clearance rate of 54%.
Last weekend’s auctions had lots of activity with multiple bidders reported at many. Confidence has improved and is continuing to build and buyers who have been sitting on their hands for quiet some time now have the confidence to transact.
That being said, the past three weeks have been quieter in the real estate world, with a limited amount of new properties coming onto the market due to the school holidays. The kids are back at school today and stock levels should now improve for the next six weeks before a very short lull for the AFL Grand Final.
The next RBA meeting is on the 11th and 12th of August and the ‘rates on hold’ decision at the previous meeting was an unexpected and controversial one. The RBA wouldn’t decide to decrease the interest rate until they have the June quarter inflation data for 2025 which will be released at the end of July. The unemployment rate rose to 4.3 per cent in June from 4.1 per cent in May and has been slowly creeping up since 2022.
The second half of 2025 is shaping up to be an active one in Melbourne’s property market with many buyers ready to buy and stock levels starting to rise now that school holidays have finished.
Have a great week.
Kim Easterbrook – Managing Director
Hi,
The clearance rate dipped slightly in Melbourne and so did the auction numbers with 451 auctions reported to Domain. Of these, 313 sold, 41 were withdrawn and 97 passed in. In comparison, the clearance rate last year was 62%.
The RBA announced a shock decision to keep interest rates on hold last week. This was despite recent data showing economic growth is weakening and inflation is easing however unemployment is still low. The RBA is waiting for the quarterly inflation data to be released and also wanting to gain a clearer understanding of Trumps new global trade tariffs’ before reducing the cash rate again.
Despite interest rates being on hold, our team have certainly seen an increase in buyer confidence and activity in both the Melbourne and Geelong property markets. Perhaps the stall in rate cuts may just ease the pressure a little but this will be shortlived if interest rates are dropped again at the RBA’s next meeting next month.
On a completely separate issue which is of high concern to me, is that myself and my team have received multiple reports of interstate buyer agencies representing mainly investors, with purchasing properties in Victoria unlicensed. To work as a buyer’s agent in Australia, you must have a real estate licence. And to work in each individual state, you must have a licence in the relevant state you are working in.
Shockingly, some of these companies are even purchasing the properties sight unseen. They do not have someone on the ground here, who is qualified to inspect the properties in person. Some are relying on the selling agent to do a video of the property and others are relying on building inspection reports. This is high risk and unethical.
It is highly important if you are deciding to invest here, that you engage a buyer’s agent that is not only licensed, but has a high level of real estate experience in the areas that you are wanting to invest. They need to be on the ground, inspecting, recommending and rejecting properties, have a full understanding of the local market including the demographic of the area, buyer demand, rental demand, rental compliance and the list goes on.
When selecting an interstate buyer’s agent whether it is to buy a house or investment property, check their credentials, accreditations and check they are licensed in the state you are wanting to buy. For Victorian purchases, this can be done on the Consumer Affairs Victoria website.
https://registers.consumer.vic.gov.au/EAsearch
Have a great week.
Kim Easterbrook – Managing Director
Hi,
The Melbourne’s auction clearance rate is improving weekly as confidence builds in the Melbourne property market. Domain has reported a clearance rate of 75% on 546 reported auctions. 411 selling at auction, 49 withdrawn and 86 passing in.
The RBA will announce the next move with interest rates tomorrow afternoon with the majority predicting another 0.25% cut and more to come throughout the year. This is due to lowering inflation, a weakening economy and global uncertainty. The flow-on effect from this will be rising property prices.
We are already seeing an increase in buyer competition at auctions and under private treaty conditions. We are also hearing reports of some buyers buying sight unseen (a practice we do not recommend). These are conditions we have not seen in Melbourne for a number of years.
The ‘bank of mum and dad’ are out in force for those first home buyers fortunate enough to have that assistance, they have been and will continue to be fierce competition in the sub $1m market. The family home buyer market has been struggling with lack of stock as many families are staying put and not selling.
The next two weeks will be quiet for newly listed properties as many are away for school holidays but stock levels will start to increase for the next two months thereafter. Likely not enough stock to outstrip demand though and we will should continue to see property prices increase throughout the winter period.
Have a great week.
Kim Easterbrook – Managing Director
