Market remains strong as time to buy in 2025 is running out

With clearance rates being quite high over recent weeks (according to REIV stats – 82%, 84% then 83%; Domain stats – which tend to include more unreported sales – 67%, 69%, then 70%), the market in Melbourne has been strong, with demand considerably outstripping supply.

Despite recent rises to fees and taxes, foreign investment into Melbourne climbs. The population growth is strong, the economy is diverse and the investment by the government in local infrastructure remains high. Compared to Sydney, Melbourne is a relatively cheap alternative.

While Melbourne has posted four consecutive months of home price growth in 2025, not everything is selling well. In order to sell, the property needs to be priced right, and vendor expectations need to be realistic.

As a buyer, how do know if a property you are looking at is going to have strong competition? How far are you going to need to stretch? And what is the property’s ‘true worth’?

While not an exact science, key indicators to look for include:

• very large numbers at the first open for inspection.
• the property is being sold by a very experienced selling agent and agency in the area.
• multiple building inspections have been sought, and contracts have been issued.
• The property has been held for a long time – this often illustrates the home has been a happy one, set within a good street / neighbourhood.
• advertising brochures have run out!

What is ‘hot’ right now:

• Turnkey, well-located family homes, particularly those that have been held for a long time.
• Single-level downsizer homes, which are not too dated or part of mews arrangement, and have minimal or no body corporate element.
• Land in inner-eastern established areas (Boroondara, Monash, Whitehorse), which are not affected by heritage overlay (ie less restrictive to build on).
• The first home buyer market (buoyed by recent initiatives).

What is ‘not hot’ right now:

• Dated single-fronted period homes (construction costs remain high, builders are hard to find, numbers not stacking as they once did).
• Large, recently completed spec-home family homes In Balwyn (oversupply?)
• Townhouses (particularly in the Bayside area) – oversupply/quality/rising body corporate fees).
• Properties that are close to or part of recently designated government local activity zones – people are concerned about rapid change, congestion, overshadowing etc. which may affect current amenity.
• Dated apartments (work ahead, rising body corporate fees, supply exceeding demand)

Trends we are observing right now:

• More EOI campaigns (particularly in the Bayside areas, where key buyer numbers are limited, vendor expectations altruistic and agents can use a less transparent ‘smoke and mirror’ selling strategy.
• Rising numbers of pre-market off-market offerings (as vendors who have decided to sell next year try to ‘snag’ a hot buyer – typical and we see a bit more of this late November / early December.
• Properties that have not sold this year ‘remaining on the shelf’ as vendors remain steadfast in their search for the key buyer. Unfortunately for such vendors, most buyers see such properties as ‘damaged goods’ and, unless the price is revised significantly, the home will be unlikely to sell.

 

 

Weekend highlights:

 

Next week the market takes a mini pause for the Melbourne Cup Weekend. The next big auction weekends look to be November 15 (already strong numbers of listings are committed for that date), and then November 22 and 29 should also be quite popular.  A good number of the homes sold hereon will be representative of people who have recently bought, so hopefully that should give buyers confidence that the vendor expectations will be realistic. But having to beat competition could be the real test. As a buyer, are you prepared to wait another 4-6 months (say) until the market returns in earnest in 2026?

 

 

Some of the better properties going to auction 15 November; an architect’s view

10 Crisp Street Hampton – Robin Parker/Tas Bartels, Marshall White

54 Maitland Street Glen Iris – Carla Fetter/Aylin Demir, Jellis Craig

62 Empress Avenue Surrey Hills – David Banks, Joyce Liu, Jellis Craig

 

Off-market / Pre-market Properties:

• Single level brick Victorian, 5-2-2, pool, ~780sqm, Hawthorn – circa %5.25m
• Timber Period home, 3-2-2, good north light, Hawthorn East – circa $3m
• Contemporary 4-2-2 family home, ~760sqm, Surrey Hills – circa $4.1m
• Corner brick home, 2-2-1, ~380sqm, Camberwell – circa $1.5m
• Clinker brick, 4-2-2, ~770sqm, Balwyn North – circa $2.6m
• Period brick home with HO, ~940sqm, dated reno, Toorak – circa $8.5m
• Large period brick home, no HO, ~1000sqm, Toorak – circa $12.5m
• Brick single fronter, renovated, 3-1-0, Armadale – circa $2.1m
• Renovated brick Victorian, 3-1-0, ~250sqm, Armadale – circa $2.1m
• Brick art deco semi attached, 2-1-0, ~210sqm, Prahran – circa $1.8m
• Mid-century, immaculate original condition, 3-2-3, ~440sqm, Caulfield North – circa $1.9m
• Contemporary 5-4-6 family home w basement, pool, Brighton – circa $7.25m
• Tuscan inspired townhouse, 4-3-4, basement, Brighton – circa $2.9m
• Contemporary 3 storey w lift, 3-2-2, water views, Hampton – circa $4.7m
• Large timber family home, 5-3-2, pool, ~700sqm, Beaumaris – circa $2.4m
• Edwardian brick double fronter, 5-3-2, Albert Park – circa $5m
• Double fronted Victorian, 3-2-0, ~240sqm, South Melbourne – circa $1.7m
• Pretty timber period home, 2-1-1 on ~270sqm, Northcote – circa $1.25m

 

Auction Spotlights:

8 Elgin Street Hawthorn

• Quoted $2.8-3.05m
• Started and ended $2.85 VB
• Bidders 0

A good single level period home in a good Hawthorn location.

One of the first auctions in a very busy Melbourne auction day. A reasonable (mainly local) crowd of about 50 people gathered as Auctioneer James Tostevin conducted proceedings.

Front and rear parking, north light and an adaptable floor plan with a pretty period facade are the pluses, but internally the feel is not that warm, and the property was not that well maintained in places. Flow is a bit tricky and original proportions a little distorted. This auction wasn’t a very long one, with James setting the tone with a vendor bid of $2.85m, waited for some bidding (which didn’t eventuate), referred the bid, resumed the auction and then closed the auction without too much fuss. Selling last back in 2023 for $2.72m, vendor expectations were clearly too high here and the quote reflected that. A good example of a recently sold property not selling for much more than it was bought for, due to the market stabilising.

 

37 Anderson Street Malvern East

• Quoted $1.8-1.925m
• Started $1.9m (crowd bid)
• Ended $2.490m
• Bidders 4

1pm auction and a small crowd gathered for this auction – but there was clearly a buzz here. What was on offer was a free-standing modern home, with a functional floor plan and secure double garaging in a fringe Gascoigne Estate location. The property was on its own title, set within a street not encumbered by a heritage overlay (unlike surrounding areas) and this property had not sold for a very long time, which also helped the agent quote as vendor expectations were very reasonable. Auctioneer Steve James conducted proceedings right on 1pm (big tick) and didn’t have to look too hard for an opening bid as $1.9m was offered by the first bidder. Short fire bidding between two bidders saw the property quickly on the market at $1.95m (second big tick), then a further two bidders ultimately saw it sell for $2.49m. A very strong result, but not totally unexpected given such offerings don’t come along too often, and it is well suited to a downsizer who wishes to remain in the area and not have to pay and deal with body corporate bodies.

 

38 Hambleton Street Albert Park

• Quoted $3.5-3.75m, $3.6-3.8m
• Started $3.75m (crowd bid)
• Ended $4.0m – Passed In
• Bidders 2

The current vendors purchased a vastly different looking home when they bought 38 Hambleton Street 27 years ago. Reverting to one home from the then two units, as well as peeling back an extra layer of bricks to expose the name “Evelyn” and the beautiful Hawthorne brick façade. While a south rear, the rear extension added celestial windows and uses the full width at the rear to create an excellent living space.

Over 70 people crowded around the front of the home to see Oliver Bruce head up the auction on behalf of Marshall White. A solid opening bid of $3.75m was received, countered by a second party, going back and forth to quickly reach $3.9m. Smaller increments were requested, at first rejected, then accepted. Various calls for “is it on the market?” were also rejected as the level slowly crept to $4.00m.  At this point a break was announced, yet when the team emerged, the home remained below the vendor’s expectations. Bidder 1 was not prepared to offer more, so the property was passed in to the second party.  At time of publication, the home remains on the market, without an adjustment to the published price range.