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The last big auction weekend for the year resulted in 1,185 auctions being reported to Domain with 793 selling, 118 withdrawn and 274 passed in.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1,005 auctions reported to Domain and the preliminary clearance rate coming in at 65%.  657 properties sold, 133 were withdrawn and 215 passed-in.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

Hi,

The Melbourne auction clearance rate dipped slightly to 67% but that was due to a very high volume auction weekend.  1,263 auctions were reported to Domain with 841 selling, 134 withdrawn and 288 passed in.  In comparison, the same weekend last year resulted in a clearance rate of 61%.

The Domain House Price Report was released last week which showed Melbourne’s Sept 25 quarterly median house price increased 2.2% to $1,083,043.  Very close but still $10,000 lower than the record high in 2021.  The median unit price rose 1.7% in the September quarter to $590,597 which is within $12,000 of the record high in December 2021.

Property prices are predicted to continue to rise throughout the December quarter but the rate of the price growth will be highly impacted by the RBA’s interest rate decision next week.  If interest rates are reduced, the rate of property price growth may be higher than if they were to stay on hold.  Each interest rate reduction this year has resulted in a instant increase in buyer confidence in the property market.

The countdown is on to Christmas with only a few more weeks of auction campaigns launching and then mid November to mid December will move into a private sale market and the activity of off market properties will rise in the lead up to Christmas.

Have a great week

Kim Easterbrook – Managing Director

Hi,

The clearance rate remained stable on a high volume auction weekend.  816 auctions were reported to Domain, of those 589 sold, 149 passed in and 78 were withdrawn resulting in a clearance rate of 72%.  In comparison, the same weekend last year produced a clearance rate of 59%.

Interest rates are in much discussion again as the Reserve Bank of Australia are due to meet on the 3rd and 4th of November.  Last week, the Australian Bureau of Statistics released data showing that unemployment rose from 4.3% to 4.5% in September which is the highest rate since the pandemic in 2021.  In addition, consumer confidence is falling, as to are building approvals. Last week it was looking extremely unlikely that there were to be another interest rate drop, now it is back on the table.

What this means for the property market is if we see another interest rate cut in November, there may be increase in buyer confidence just before Christmas.  Melbourne’s property market has been very sensitive to interest rate movement.  Everytime interest rates drop, there is an increase in buyer activity.  Each time they remain on hold, activity somewhat slows down/stabilises.

Next weekend will be a big test for the property market with almost 2,000 properties going under the hammer.  The higher number is a result of the Melbourne Cup weekend where there are only a handful of auctions.

Have a great week

Kim Easterbrook – Managing Director

Hi,

A very big auction weekend with 831 auctions being reported to Domain.  Of those, 610 sold, 150 passed in and 71 were withdrawn resulting in a solid clearance rate of 73%.  In comparison, the same weekend last year produced a clearance rate of 58%.

Melbourne property has been a hot topic this year and interstate investors have been circling.  Since 2020, the Melbourne property market has taken a hit.  A number of things have contributed to this, harsh Covid lockdowns, downturn in the economy, the state government increasing land taxes, stricter compliance for rental property standards and then rising interest rates.

Since the lockdowns ceased at the end of 2021, the economy has been slowly recovering but then interest rates started to rise which stopped the recovery in the property market.  In February 2025, the Reserve Bank handed down the first interest rate cut and then followed with two more interest rate cuts with the last being in August 2025.

Historically, the Melbourne property market has been one of the strongest performing markets in the country and after years of a lull, property prices are rebouding.

Why is Melbourne property appealing to investors?

In addition to declining interest rates, the underperforming property market has a lower median house price (lower entry price point) than Sydney, Brisbane and Canberra.

Population growth is strong, during the COVID-19 period, there was a population decline but this has strongly rebounded.  In the year ending June 2024, the ABS states that Greater Melbourne’s population grew by 2.7% (142,637 people).  The prediction for the year ending June 2025 is an increase of approximately 100,000 people.

Population growth has not just put pressure on property prices, but also rental demand.  Investors buying a good quality property should have no issues in finding a tenant quickly.

Huge amounts of money have been put into infrastructure including roads, trains, hospitals and so on.

High quality education, not just at a tertiary level but also primary and secondary schools.  This offers a good lifestyle for families and just another reason why Melbourne is great city to live.

Many research companies are predicting Melbourne to be the top-performing capital in 2026 including KPMG which is predicting Melbourne property prices to rise by 6.6%.

Spring is often a great time to buy with higher levels of stock (properties on the market) and off-market activity rises in late November and December leading into Christmas.  This will likely present buyers with some better buying conditions leading into 2026.

Have a great week

Kim Easterbrook – Managing Director

Hi,

A big auction weekend with 817 auctions being reported to Domain.  Of that, 574 sold, 177 passed in and 66 were withdrawn resulting in a clearance rate of 70%.  In comparison, the same weekend last year produced a clearance rate of 59%.

There were no surprises last week with the Reserve Bank deciding to keep interest rates on hold but they warned the likeliness of another interest rate cut this year is declining.  Stronger than expected household spending was recorded in August and the RBA are not willing to reduce rates until they have received quarterly data from the Australia Bureau of Statistics, which they deem to be more accurate than the monthly data.  The next round of quarterly data is due at the end of October, just in time for the next RBA meeting with is the 3rd and 4th of November.

The lack of interest rate movement has removed any FOMO (fear of missing out) in the property market, but it has created stability, which is not such a bad thing.   That being said, the sub $950,000 market may start feeling the heat with the rollout of the first home buyers’ guarantee from the federal government.

The 5% Deposit Scheme will allow first home buyers to secure a home loan with a deposit as low as 5% without needing to pay Lenders’ Mortgage Insurance (LMI).  The federal government will provide the bank a guarantee for upto 15% of the sale amount.  There are no place limits or income caps to first home buyers who can acccess the scheme.

The spring selling season has begun which means more stock has already come onto the market (properties for sale) and with the chance of no more interest rate cuts for the rest of 2025, this may mean the price pressure may be eased for properties in the $950,000 plus market and we may see some reasonable buying conditions.  The sub $950,000 market will likely see some increase in demand as more buyers enter these markets through the first home buyers’ guarantee.

Have a great week

Kim Easterbrook – Managing Director

Hi,

A big weekend of auctions with 941 auctions reported to Domain with the Melbourne auction clearance rate achieving 71% over the weekend.  668 properties sold, 200 passed in and 73 were withdrawn.  In comparison, the clearance rate for the same time last year was 60%.

The Melbourne property market will quieten down over the next two weeks due to next week’s AFL Grand Final and the commencement of Victorian school holidays.  We will then enter into the ‘Spring selling season’ before it quietens down again mid December to late January.

The feedback that I am receiving regarding Spring stock levels is that the amount of properties coming to market will rise, but not as many as the selling agents would have hoped for.  Many investors that had planned on selling have already done so.  So that leaves owner occupiers and most are only selling due to personal circumstances, that being either divorce, death or financial pressures.  It is looking like demand for property will continue to outstrip supply for quite some time and there will be a continuation of pressure on Melbourne’s property prices.

The RBA are due to meet again at the end of this month and it is looking likely that interest rates will remain on hold due to inflation rising and the unemployment rate declining in July.   This should help prevent the Melbourne property market going into any strong price growth and allow it to continue to grow at a slow and steady pace (which is much more sustainable).

Have a great week

Kim Easterbrook – Managing Director

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