Hi,

Surprisingly high auction numbers over the weekend with 1,198 auctions reported to Domain resulting in a preliminary clearance rate of 63%.  759 properties sold, 144 were withdrawn and 295 passed in.  As a comparison, the clearance rate for the same weekend last year was 59%.

2025 has been a very interesting year for the property market in Melbourne.  We have experienced three interest rate cuts totalling 0.75% in February, May and August.  The RBA are meeting today and tomorrow to discuss the next interest rate move with most predicting that interest rates will remain on hold.  The interest rate reductions have largely contributed to stronger interest from buyers this year and has resulted in a very active property market.

Property prices in Melbourne have increased in 2025… in fact, according to Domain, the median house price increased to $1,083,043 in the September quarter which is an annual increase of 6.2%.  Units also increased to $580,878 for the same period which is an annual increase of 4.3%.

The rental market is also getting tougher for tenants with the median weekly rental price for units increasing to $575 to the September quarter.  An annual change of 4.5% however houses have remained stable at $580 per week.  The vacancy rate still remains tight at 1.4%.

Some recent changes to the residential tenancy laws were rolled out in November with rental providers no longer allowing to evict a renter for no valid reason, banning all types of rental bidding, window coverings now to have secured cords, notice periods to renters to be extended to 90 days and so on.

Property prices for 2026 will largely be influenced by interest rates.  Inflation is running higher than expected so there doesn’t appear to be any mortgage relief coming in the near future.  However, interest rate stability and strong population growth should still contribute to further property price increases in Melbourne in 2026.

This will be the final Melbourne property market wrap for 2025.  From the team at Elite Buyer Agents, we wish you all a happy and safe holiday season.

Kim Easterbrook – Managing Director