Hi ,

Over the weekend, Melbourne produced the strongest auction clearance rate in the country with a rate of 73%.  This is the highest clearance rate we have seen since June 2023.  Of 482 auctions reported, 350 sold, 47 were withdrawn and 85 passed in.  Whilst the amount of auctions were lower due to the federal election, to compare, other weekends where auction numbers were lower (long weekends) have still only produced auction clearance rates in the low to mid 60%’s.  The same weekend last year produced a clearance rate of 58%.

Like the election outcome or not, it is over and the uncertainty this creates because of the “uncertainy about the outcome” has now passed.  Along with tomorrow’s predicted interest rate cut, we are anticipating this to bring some confidence back into the Melbourne property market.  Interestingly, last week, we saw an increase in new buyer enquiry in our office, along with the increased clearance rate is demonstrating that we may be turning the corner.

PropTrack Home Price Index has been released and Melbourne is sitting just behind Adelaide in property price growth for 2025.  Home values in Melbourne have increased each month so far this year and is demonstrating a good sign that we are well into the recovery of the Melbourne property market.  Sydney, Brisbane, Canberra and Adelaide have higher median dwelling values than Melbourne which makes us one of the most affordable cities in the country.  Melbourne is also experiencing significant population growth, (increased by 142,600 in 2023-2024), which is increasing demand for property and therefore Melbourne has become a very attractive place for property investors to buy.

Whilst this week’s interest rate cut will be welcomed by many, it will take one or two more interest rate cuts to really start driving property prices and therefore I believe still gives buyers some time and opportunity to buy well in the Victorian property market.  We have had a great year of buying for our clients thus far and I still believe we have a window of opportunity left until property prices start to rise.

Have a great week.

Kim Easterbrook – Managing Director