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Melbourne auction clearance rate for the weekend has come in at 71%. 524 auctions have been reported, 372 selling, 51 withdrawn and 101 passing in.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and higher demostrating strength in the Melbourne property market. 576 auctions were reported with 415 selling, 36 withdrawn and 125 passing in.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
Hi,
According to Domain, the Melbourne’s auction clearance rate reached the highest levels since May 2023 which shows the property market is improving and buyer confidence is growing. There were 658 auctions reported to Domain with 491 selling under the hammer, 97 passing in and 70 were withdrawn resulting in a clearance rate of 75%. The same weekend last year achieved a much lower rate of 57%.
The Melbourne property market is in recovery mode and property prices have increased for five consecutive months in a row (according to Proptech). This is likely to continue as interest rates slowly decline further which is widely predicted.
The latest inflation data suggests that inflation is coming down faster than expected with the latest results for the month of May coming in at 2.1% which is a decrease from 2.4% in April. Trimmed inflation (this excludes the most volatile components in the CPI) was 2.4% in April down from 2.8% in April.
The RBA are due to meet next week and many are expecting an interest rate cut to happen in July rather than August. Many are predicting that there could be another 3 interest rate cuts this year which will likely result in further increase in property prices.
More and more auctions are now attracting multiple bidders. The auction of 29 Forest Street, Collingwood gathered interest from multiple parties. It is three bedroom, two bathroom home with no car parking and located very close to Alexandra Parade. The price guide was $1,520,000 to $1,580,000 which was raised from $1,450,000 to $1,550,000 prior to auction. The bidding started at $1,500,000 and the property sold for $1,650,000 under the hammer.
Have a great week.
Kim Easterbrook – Managing Director
Hi,
The Melbourne auction clearance rate slightly dipped on over the weekend to 69% on 867 auctions reported to Domain. 456 sold at auction, 142 passed in and 67 were withdrawn. As a comparison, the clearance rate for the same weekend, last year was 62%.
Over the past two years many property investors sold their investment properties due to rising holding costs. Now it appears the table is turning, interest rates are coming down, vacancy rates are still low and rents are continuing to rise. The latest data from SQM research shows that rents in Melbourne rose 3% over the past twelve months… (2.3% for houses and 3.4% for units) and vacancy rates are stable at 1.7% in May 2025.
Many investors, in particular interstate buyers, are circling the Melbourne and are also looking at the Geelong property market as good options to buy. Melbourne has been sluggish in property price performance for a number of years and has become one of the most affordable capital cities in the country. That being said, it is still very difficult to buy a quality house (in established locations with good demographics) in rental condition under $1m (where it seems many investors are capped out in budget). Some investors are looking at other areas around Melbourne where it is still possible to buy a house but within a sub $1m budget.
Most property investors buy for capital growth and some for yield. Those looking for capital growth are hoping to purchase a property with land are having to look at alternative areas to Melbourne. Geelong (which is an easy commute to Melbourne) being one of those areas and for good reason. Population is predicted to increase by almost 50% over the next 20 years which will put huge pressure on housing supply for both home owners and renters. Due to the strong population growth and expansion of infrastructure and project approvals (another recently approved project is the $250M Viva energy gas terminal at Corio Bay) the city just keeps growing.
Some investors are looking at buying higher yield properties where CBD apartments are a higher-risk option (as rents have risen but prices have not) and other investors are looking at smaller properties such as villa units and apartments in the inner and middle ring suburbs to get into the Melbourne market. Many investors with budgets in excess of $1m are able to buy a house in the inner and middle ring of Melbourne and are trying to buy in before more interest rate cuts will likely push prices upwards.
We have also seen some investors moving to commercial properties where some properties have been achieving solid capital growth and slightly high rental yields. Also, there are benefits with commercial properties where the tenant pays for most of the outgoings and therefore reducing the ongoing holding costs.
There are many options when it comes to buying an investment property, and every buyer’s financial situation and goals are different so it is important to ensure you get the right advice (an experienced buyers’ agent or property advisor) to ensure you find the property that is the right fit.
Have a great week.
Kim Easterbrook – Managing Director
Hi ,
Lots of auctions over the weekend in Melbourne with reports of confident bidding and increased buyer activity. According to Domain, there were 737 auctions reported resulting in a clearance rate of 70%. The same weekend last year produced a clearance rate of 59%.
As we predicted, buyer activity in Melbourne has risen but stock levels have not. There is a lack of quality properties on the market and generally stock levels are low. This is not unusual for winter and we anticipate that to continue on until after the school holidays. Some vendors will be waiting to see evidence of property price growth in Melbourne and stronger clearance rates before putting their property on the market.
First home buyers are very active, as too is the ‘bank of mum and dad’. I missed out on securing a villa unit yesterday in the south east that had six offers on it (sold prior to auction above the comparable sales). Some good quality apartments in the inner city ring are also getting snapped up quickly with multiple offers and also are attracting multiple bidders at auction. Some buyers are feeling the pinch from higher interest rates and to enter into the property market, they are seeking entry level properties in quality suburbs.
The family home buyer market is still going strong (and quality family homes have been since Covid). A Fasham Builder home was under competition in Malvern on the weekend. The three bedroom, two bathroom, single level home on 696 sqm of land was quoted at the start of the auction campaign for $3,200,000 to $3,500,000 with the quote range lifting to $3,650,000 prior to auction. The property was announced on the market at $3,660,000 and sold for $4,000,000.
The big 4 banks have all predicted more interest rates to come but Westpac last week, announced they are predicting 4 interest cuts over the next 12 months. If this happens, this will likely add more pressure to property prices, particularly in Melbourne as the property market here has been so flat for many years now and is now one of the most affordable cities in the nation.
Have a great week.
Kim Easterbrook – Managing Director
Hi ,
The Domain auction clearance rate for last weekend came in at 70% on a very big auction weekend. 1,073 auctions were reported with 747 selling, 217 passing in and 109 withdrawn. In comparison, the clearance rate last year was 62%. In addition, the REIV have recorded 188 private sales. There won’t be many auctions this weekend coming due to the King’s Birthday public holiday.
Melbourne property was all over the news this morning with radio stations reporting “Melbourne is back”… “Melbourne property price gains leading the nation”. The confidence in Melbourne property is gaining momentum. PropTrack released data over the weekend that suggests Melbourne property rose $250 per day in May and it is the fifth month straight that home price growth has been in achieved in Melbourne. May was the biggest single month of growth for house prices since 2021. There are strong predictions now that Melbourne will surpass its previous record median price of $960,000 by the end of the year.
We have seen a significant increase in new buyer enquiry in our office from all sorts of property buyers being investors (mostly interstate), first home buyers, upsizers (family homes) and downsizers. Many of these buyers are still getting their finances in order and are not quite ready to purchase, but buying a property has become top of mind now for many. I am predicting slow and steady growth this year rather than any boom times as buyers are still cautious, but certainly more confident than before.
Have a great week.
Kim Easterbrook – Managing Director
Hi,
The Domain auction clearance rate for Melbourne over the weekend was 72% on what was a high volume weekend. 618 auctions were reported to Domain with 448 selling, 55 were withdrawn and 115 passed in. In comparison, the same weekend last year resulted in a clearance rate of 59%.
The Melbourne property market is slowly waking up and confidence is building. Over the weekend there were some strong auction results (albeit sporadic) and generally more bidders at auction. We haven’t seen any evidence yet of strong price growth yet… only marginal growth this year which suggests the market is stable.
There is usually a lag from the time there is substantial property price growth and the time it is recorded and reported. Many buyers don’t have the confidence to buy until they see evidence of price growth, which is when buyers can miss out on valuable capital growth in their assets.
We experienced an influx of interstate investors circling late last year and early this year before going quiet ahead of the federal election and Trump’s tariff war. Over the past two weeks, we have again received strong enquiry from interstate investors and with tomorrow’s likely announcement of an interest rate cut, many of these investors are motivated to buy now.
If you are considering buying a property in Melbourne or Geelong, I would suggest now might be as good as time as any. Historically, Melbourne has achieved strong capital growth and it has not been seen that for many years now. With interest rates coming down, population growing and buyers circling (particularly interstate investors), all signs are indicating we could see some reasonably property price growth this year.
Have a great week.
Kim Easterbrook – Managing Director
