Archive for August 2026

The winter property market

There’s only one word to describe Melbourne’s winter property market this year: lacklustre.

According to REIV PDOL data, total reported sales volume for homes sold above $1.5 million over the past month, compared with the same period last year (28 July to 28 August), is down by approximately 60% across the board.

Port Phillip is showing slightly better numbers than some areas, but based on a much smaller volume:

• Stonnington – down 60.9% (from 110 last year to just 43 this year).
• Boroondara – down 59.7% (from 191 last year to 77 this year).
• Bayside – down 59.2% (from 125 last year to 51 this year).
• Port Phillip – down 53.85% (from 65 last year to 30 this year).

This is not to suggest that total stock levels are down by anything like this amount. There are endless pages to scroll through on Domain and realestate.com.au of homes currently for sale. But the actual number of successful sales is well below the same period last year.

Anti-money laundering legislation

The new AML/ATF legislation took effect on 1 July.

This has been confusing for many, including selling agents.

The Attorney-General’s Office expected more than 35,000 real estate agencies to enrol. However, as at 13 August, only just under half had done so. The slow take-up is similar across the accounting and legal industries.

As buyer’s agents, we are required to carry out identity checks on both our clients and the vendors of the homes they purchase. Although this is a time-consuming process, we have found it to be generally quite smooth and unlikely to have contributed to the reduction in sales numbers.

Good properties

We consider a good property to be one that is conveniently located close to amenities, enjoys plenty of natural light and has a well-designed, flexible floorplan.

Well renovated single-storey homes are often particularly appealing to both families and downsizers because of their ease of living and accessibility. Two good sales of note – 29 Northcote Road Armadale and 19 Oak Street Hawthorn – have sold very well in recent weeks. They represent as outliers in a struggling market.

But the good ones are few and far between at the moment. However, due to the lack of competition for the limited number of genuinely good homes available, some properties are still selling very well.

The difference in a changing market is that good properties still attract buyers.

If the vendor is willing to accept current market conditions, their properties are selling.

We bid on two homes last weekend. Both sold above their quoted ranges, with at least three parties competing in each case. And, no, our clients were not the successful buyers on either occasion.

New Victorian property sale reforms

The REIV informed agents this week that, from 1 October 2026, new rules will change the way residential properties are marketed and sold across Victoria.

One of the biggest changes is the replacement of the now-familiar Statement of Information (SOI) with a new Property Price Statement (PPS), designed to give buyers more detailed information about a property and comparable sales.

For sellers and agents, the changes bring new advertising and disclosure requirements, including publishing a vendor’s reserve price at least seven days before an auction or fixed-date sale.

Once a property sells unconditionally, the final sale price must also be added to the PPS within seven days and remain publicly available for at least 18 months.

What we are told:

• The SOI will be replaced by a PPS from 1 October.
• Online property advertising must prominently display the PPS.
• Buyers will see more detailed information about the property and comparable sales, including bedrooms, bathrooms, car spaces, floor area and land size.
• Auction and fixed-date sale reserve prices must be published at least seven days before the sale.
• Sold prices must be published within seven days of a sale becoming unconditional.
• Sold-price information must remain free and publicly accessible for at least 18 months.

There are also questions agents are still searching for answers on, such as:

• If the vendor wishes to review their reserve (up or down) within that seven-day period, does the auction date also then need to be changed so it remains seven days after the new reserve price date?
• Is the vendor able to sell their property below (or well below) the reserve price on the day and, if so, how will that happen? For example, will we be seeing more ‘pass-ins’ and what tactics/strategies will agents use in procuring this practice?

Although revealing reserve prices sounds good in theory, it is likely to remain just as challenging in practice for buyers. Agents may well change their methods of sale away from auctions and expressions of interest to avoid the situation all together.

Rise of the ‘off-market’

‘Off-market’ property numbers have been significantly higher than in previous years. However, we have found the majority are heavily overpriced, with hope of a dream price being the main motivation for many vendors.

Having said that, our experience has allowed us to sift through the mountain of properties that are ‘not really for sale yet’ to find a few gems for our clients.

We expect to see the number of ‘off-market’ properties skyrocket for the remainder of the year.

A property without a formal ‘set date’ campaign may more easily avoid some of the legislation changes relating to advertising and reserve prices.

This risks pushing more transactions underground, increasing the ‘smoke and mirrors’ games some agents play and making it even more difficult for buyers to know what a property is really worth, or whether there are genuinely other buyers interested in the same property.

To the uneducated buyer, this can be a very difficult road to navigate. More than ever, we believe, appointing independent buyer representation is a sound investment in one of the biggest financial decisions many will make in their lifetimes.

2026 – the road ahead to the end of the year

As we are only a day or two away from spring, it is natural (and fairly normal) for buyers to be optimistic about more listings coming on to the market. The weather is better, the flowers are coming out, and generally the mood in Melbourne is a little more positive as football finals and the spring racing carnival are in sight. Yet this year looks different. Why is that?

• Most listings for September 19 are out already, and the following weekend (September 26) is the AFL Grand Final – and not much traditionally happens on that day.
• The following weeks fall into October, and with the legislation changes outlined above coming into effect, it would be natural for most vendors to ‘wait and see’.
• Then we have November and, at the end of that month, we have a state election. Traditionally not much happens in the weeks prior, as voters ‘wait to see’ to what a change in government can possibly bring. Most agents we are talking to are confirming that there will be very few listings in this period.
• December is never a great time for listings. If a campaign fails, not many people feel comfortable carrying the listing/sale over into January, when most are on holidays and the industry effectively ‘shuts down’.

2027 is therefore on the radar and at the forefront of many vendor discussions right now. Many buyers may need to wait another six months at least to buy their next home. What will this do to buyer demand, many ask. As a buyer, are you ‘buy-fit’ for this scenario?

 

 

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

‘Off-market’ Properties:

• Character family home, 5-2-2, 3 levels, Camberwell – circa $3.2m
• Classic 2-storey, 4-3-3, ~720sqm, corner, Hawthorn East – circa $2.8m
• Renovated 6-3-2, 2-storey, north rear, Camberwell – circa $2.65m
• 1930s brick 2-storey, 4-3-1, renovated, Camberwell – circa $3.4m
• Near new 6-5-4 large family home, ~680sqm, Kew – circa $5.7m
• 6 bed 4 bath, plus 2-2 studio, court, pool, ~1700sqm, Glen Iris – circa $4.7m
• Contemporary 2-storey, 3-2-2, ~670sqm, Malvern – circa $4.2m
• 3-level TH w lift, 4-3-2, 4 living, incl studio, South Yarra – circa $3.45m
• Fully renovated TH 3-2-2, near amenities, Armadale – circa $3.5m
• Renovated brick Edwardian, 3-1-1, ~200sqm, Prahran – circa $2.1m
• Timber Victorian 2-1-0 on ~160sqm, west rear, Prahran – circa $1.15m
• Deco w modern rear, 3-3-1, ~240sqm, Prahran – circa $1.8m
• Renovated/extended timber, 4-2-2, Alphington – circa $2.85m
• Brick Victorian 2-1-0 on ~140sqm, Cremorne – circa $1.2m
• Renovated weatherboard 3-2-0, pool, Northcote – circa $2.7m
• Brick Edwardian, 3-1-2, ~465sqm, Elwood – circa $2.35m
• French style 2-storey 4-3-5 w pool, Brighton – circa $6.2m
• Period 4-2-2, pool, corner, near amenities, Hampton – circa $2.5m
• Hamptons style family home 5-2-2, ~630sqm, Hampton – circa $3.9m
• New home site, ~766sqm, north rear, Hampton – circa $2.0m
• Original clinker brick, 4-1-2, ~610sqm, Sandringham – circa $1.95m
• Original timber 4-2-2, ~700sqm, Golden Triangle Black Rock – circa $2.45m
• Contemporary 4-2-2, pool, north rear, Pennydale, Cheltenham – circa $2.3m
• 1920s renovated, 4-3-2, pool, Caulfield North – circa $2.5m
• Contemporary family home, 4-2-4, pool, Caulfield South – circa $2.6m
• Apt directly overlooking Fawkner Park, 3-2-2, Melbourne – circa $2.55m
• Dated home on land over 1300m2 – Gascoigne Estate Malvern East – circa $7.5m

 

Auction Spotlights:

37 Merton Street Camberwell

Listed by Désirée Wakim, this is a functional single-level period home, with prized north-facing rear, only a stone’s throw (or two) from Hartwell Primary School. In front of a solid crowd of about 80 people, auctioneer Hamish Tostevin started the auction on a vendor bid of $2.5m. After some time, bidder 1 entered the fray at $2.525m, joined not long after by bidder 2 who jumped audaciously to $2.6m. Bidder 1 rebutted at $2.625m and the property passed in at that number. At the time of writing, the property remains for private sale at $2.85m.

The home was presented well and given every chance to sell. On the face of it, the asking price seemed reasonable, and the offering was a quality home. So why didn’t it sell? To be objective, some people may have been put off by the tandem car-parking arrangement. It’s not uncommon but it is not ideal for households with multiple cars. The house was also best suited for a young family, but that demographic has possibly been most affected by recent interest rate hikes and is therefore cautious right now. In real estate, timing can be everything, right?

 

 

 

65 Fernhill Road Sandringham

This stately period home on about 937sqm of land sits proudly on the hill, offering Bay views from the upper level. The vendor’s family have enjoyed the home and location for over 60 years. Convenient to shops, station, parks and the beach, the home was looking for the next young family to make it into its forever home. Well maintained over the years, the property is ready for a freshen up and perhaps some reconfiguration (stca) to make it more user friendly for modern lifestyles. The home had been quoted $2.8-3.0m throughout the campaign.

A decent crowd of neighbours and interested parties gathered in the pretty gardens for Hodges McGrath auctioneer Nick Jones to commence proceedings.  The usual silence followed the preamble, with a vendor bid eventually placed at $2.8m to get things started. Everyone was waiting for others to make a move, which took until after the “half time break”, when a bid of $2.825m was finally placed. No other offers could be coaxed from the crowd, the home was passed in at this level and the family went inside to hear the reserve and negotiate.  The property was sold shortly after for $2.9m. A fair price in the current market to get into a well positioned home, still needing quite some money spent on it to bring up to date.