Sentiment is shifting. Media headlines are catching up. And if the last few weeks are anything to go by, Melbourne’s property market could be heading for an early Spring.
Here’s what’s happening, what it means for buyers and sellers, and why the next few months could be more active than usual.
Market narrative is changing, and behaviour is following
The tone of media coverage has turned. Headlines in recent weeks have pointed to rising prices, strong auction clearance rates, and renewed momentum in prestige markets. These include:
- “House prices rise in Australian cities as rate cuts propel market” (ABC)
- “Melbourne and Sydney auction markets heat up” (AFR)
- “Luxury home sales take off as Australians get richer” (AFR)
- “Tremendous growth: Melbourne’s prestige suburbs outperforming the rest” (The Age)
- “How rate cuts could make buying at auction harder” (The Age)
While individual results don’t make a trend, the volume and tone of these reports suggest the market mood has decisively shifted. And as we’ve seen time and again, once the narrative changes, buyer behaviour tends to follow.
Over the past six to eight weeks, blue-chip suburbs have started outperforming, with off-market and pre-market sales fetching prices well above 2023 and 2024 levels. These areas often lead market recoveries and are the last to soften when conditions turn. Their recent performance is an early signal of what Spring might bring.
More A-grade homes, more competition
As confidence builds, more high-quality homes are being listed and attracting strong interest. This is expected to increase heading into Spring, with more properties appealing to multiple serious buyers, rather than just one or two.
Price strength is likely to follow. Not immediately and not across all segments, but A-grade homes in desirable locations are already showing signs of renewed demand.
First home buyers remain highly active
Enquiry from first home buyers is strong and growing. Unlike in past years, this cohort is more diverse in terms of age, income and budgets. Older-style apartments and villa units remain a key focus, though demand is concentrated in owner-occupier-friendly properties — with investors still largely sitting on the sidelines.
The takeaway? Owner appeal is key, and competition is likely to intensify further as rates drop and borrowing capacity improves.
Don’t delay finance preparation
With the market heating up, the usual reminder applies: get pre-approved before you start house hunting seriously. Paperwork might feel tedious, but waiting until the right property appears is a sure way to miss out.
When rates fall, your borrowing power may rise … but so does everyone else’s. That doesn’t mean you need to rush a purchase, but it does mean being ready puts you in a stronger position when it counts.
Need a referral to a broker, solicitor or building inspector? We work with people we trust and would be happy to connect you.
Vendor advocacy enquiries are rising
EOFY and the early signs of a busy Spring have prompted more homeowners to seek support ahead of selling. We’re currently working with eight vendor clients, ranging from those needing help managing a relationship breakdown or estate, to others who simply want an expert to take the stress out of the process.
Our vendor advocacy service is flexible, whether you need a one-off assessment or full management of your sale campaign. If you’re considering selling and want to explore your options, get in touch at [email protected]
The best time to buy a home was 10 years ago. The second-best time is when you’re ready.
If you’re ready now, or getting close, take the next step with AXTON’s property advocates Joe Stinear and Kate Vines. Whether you’re new to the market or already pre-approved, our expert team is ready to guide you. For tailored advice, insights, or representation, contact us today at [email protected] or call 03 9939 7576.
