Archive for February 2026

Welcome back to the Melbourne property market for 2026.

Since we left off at the end of 2025, there have been quite a few disruptors to the property market: proposed government changes to agent price quoting, rising inflation levels leading to interest rate increases, another round of land tax payments for investors/multiple home owners. These disruptors do affect buyer and seller sentiment, which has resulted in a slow start, as many people are waiting to ‘see what happens’.

If we listen to the agents, there is plenty of positivity surrounding buyer activity.  Attendance numbers at opens has been solid both on weekends and mid-week – we have witnessed this ourselves – but how many viewers are actual live, hot buyers?

Whether these solid attendance numbers translate into strong clearance rates is yet to be determined, with the first of three big weekends commencing next weekend.

Big auction Saturdays at this stage look to be February 28, March 7 and March 28. April is looking messy, as it is obstructed by Easter at the start, school holidays in the middle and then Anzac Day at the end (which actually falls on a Saturday this year – not ideal for sellers).

Last year, we noted certain councils within Melbourne performing better than others, with some council areas less affected by interest rate rises than others. Certainly, there seems to be a continuing influence of Chinese money helping buyers (often second and even third generation Australians) in Boroondara to pass on a different kind of generational wealth than we have seen in other blue-chip areas, such as Toorak and Malvern, over many decades.

For some other inner-city suburbs, such as Fitzroy North, Northcote and Beaumaris, interest rate rises have more of an impact on buyer sentiment. Buyers in these areas tend to have large mortgages, with less help from the ‘bank of mum and dad’.

We don’t think this means we will see less sales this year, or buyers not wanting to buy, but we do think the market may be more ‘transactional’, meaning if a vendor wants to sell, there will be buyers around ready and willing to buy; however, if a vendor wants a certain price, then, unless the property is exceptional and scarce (in the local context), they may find themselves disappointed, with an unsold house.

With changes to the rental regulations coming into force over the next two years, along with rising land tax fees, we also expect to see an increase in ex-rental properties coming onto the market. How these will fare could depend on whether buyers become more open to the idea of renovating and updating.

Since the updated, ‘codified’ building regulations came into effect late last year, we have noticed firsthand (from planning applications we have been involved with and talking to peers in the design/planning space) that the time frame for approval has been cut significantly. The benefits of this include cutting holding cost times, and objections that may have once tied up an application for months, or even years, if there is no legal ground for the objection, are working through the application process with no additional down time. For applicants, this is valuable, providing certainty and confidence and helping minimise risk.

Another interesting observation we have noticed is that information pertaining to past sales results and vendor information stored in sales data programs such as PDOL are slowly being removed from the system. We are not sure whether this is by accident, or part of a new plan to make it harder to find the sale history of a property. If this trend continues, could it make it harder for buyers to determine value?

So where does that leave us for the first quarter of the year?

We expect not much change from the end of last year. Clearance rates may continue to be published in the 70% or even 80% ranges. But knowing how many properties each weekend that go to auction are withdrawn from the counting process, more often due to lack of interest, we think a more realistic view will be around the 55-65%. This indicates a generally healthy, quite balanced market.

The challenges in buying the right property for buyers will continue, particularly if they have little experience doing it. Vendors have selling agents to help them but the key question for buyers remains – who have you got in your corner?

Some of the better properties currently on the market; an architect’s view

 

38a Essex Road Surrey Hills – Peter Vigano/Leo Siragusa, Jellis Craig

10 Union Street Armadale – Jack Richardswon/Luca Pignalosa, Abercrombys

16 Gray Street Brighton – Halli Moore/Owen Bowdich, Buxton

17-19 Lang Street Beaumaris – Stefan Delyster/Romana Altman, Buxton

‘Off-market’ Properties:

• Renovated Queen Anne 5-3-2, pool, ~1500sqm, Camberwell – circa $7.75m
• 2-storey Californian Bungalow, 4 bed, ~745sqm, Camberwell – circa $3.3m
• Brick 2-storey family home, 5-3-3, ~670sqm, Camberwell – circa $3.15m
• Near new 2-storey 5-5-3 family home, pool, Kew – circa $7.75m
• 3 bed townhouse near amenities, Prahran – circa $1.45m
• Brick Edwardian w plans to extend, Prahran – circa $2.4m
• Renovated single fronted brick Victorian, 3-2, Armadale – circa $1.85
• Art deco 3-1.5-1 home near amenities, Balaclava – circa $1.85m
• Renovated Californian Bungalow, 4-2-2, Brighton East – circa $2.3m
• 4-3-2 townhouse near parks and schools, Hampton – circa $2.3m
• Edwardian, single level, 3-1-1, prime position, Sandringham – circa $2.25m
• Development site ~840sqm w. 18m frontage, Beaumaris – circa $2.0m

Auction Spotlights:

36 Hunter Street Malvern

A good crowd of over 60 people came out to watch the auction at 36 Hunter Street Malvern.  A pretty, single level, timber Federation home, with covered off street parking ticked a lot of boxes for prospective buyers.  The home was being quoted $3.1-3.4m.  Daniel Wheeler headed up the Marshall White team and was made to work hard for anything to start.  Looking like it was going to pass in on the opening $3.1m vendor bid, suddenly two buyers put their hands up, trading offers to steadily to bring proceedings to $3.4m.  After a chat to the vendors, the bidding was reopened, receiving a more cautious response from the buyers. Slower $10,000 bids eventually brought the property on the market at $3.45m, then selling to the opening bidder for $3.5m.  A fair result for the offering.

57 Potter Street Black Rock

A sympathetically extended and updated single level art deco weatherboard home. It’s size and configuration, made it an attractive proposition for “younger downsizers”, not quite ready to part with the benefits of a full block and keen on a double garage.  Mark Earle’s first auction of the year, started with a pleasant genuine bid of $1.9m (in the middle of the quoted $1.85-1.95m).  Again, two bidders were vying for the property; bidder 1 steady and strong, bidder 2 keeping things varied and unpredictable.  After quickly exceeding reserve at $1.98m, both parties were clearly hurting by the $2.1m mark, with the home eventually selling to the opening bidder for $2.13m.  A solid result for the property.