Melbourne’s property market is edging closer to a turning point. Sentiment is clearly improving, buyers are more active, and early signs of price strength are emerging in key suburbs. But for now, much of this remains a story of preparation rather than action.
Here’s what’s driving the market this month, and why now is the time to get ready.
Optimism is growing
Buyers are more confident than they were six months ago. Rate cuts are now widely expected, the Federal election is over, and more stock is anticipated over the coming months. Together, these factors are creating a sense that prices could rise over the next year, prompting more buyers to start making plans.
So far, this hasn’t translated into a broad rise in prices. However, some traditional market leaders, such as Albert Park, Hawthorn and Canterbury, are already recording stronger-than-expected results, especially in off-market and pre-market sales. These suburbs tend to move first in a rising market, signalling that change may be underway.
Off-plan stamp duty savings extended
The Victorian Government has extended the off-plan stamp duty concession by 12 months, with no purchase price cap. This means significant savings for buyers such as up to $100,000 on a $2.5 million apartment or townhouse.
For downsizers and “right-sizers” in particular, this can meaningfully reduce upfront costs at settlement. Off-plan purchases still require careful due diligence and professional advice, but the incentive has made them a far more attractive option for some buyers.
First home buyers are leading the market
First home buyers are now the most active segment in Melbourne, making up a higher proportion of participants than at any time in recent memory. This group spans a broader range of ages, incomes and price brackets than before.
With interest rates tipped to fall, borrowing power is expected to improve, but so will competition. A-grade properties are always desirable and tend to sell first. C-grade homes only become appealing when buyers are priced out of better options. If you’re planning to buy, be strategic, and don’t wait until everyone else is chasing the same homes.
Prepare your finance now
Pre-approval applications are rising, but many buyers still leave finance to the last minute. Paperwork may be dull, but it’s essential to have it done before the market accelerates. Being pre-approved allows you to move quickly on the right property and bid with confidence.
If you need a referral to an experienced broker, accountant or adviser, we’re happy to connect you with professionals we know and trust.
Look beyond your first-choice suburb
Melbourne is made up of hundreds of “villages” with their own rhythms, amenities and lifestyle features. When searching for your first home, consider the next suburb over, or a different property type, and think about your long-term exit strategy. Location, lifestyle and flexibility all matter when circumstances change.
Vendor advocacy on the rise
Vendor advocacy services are in high demand right now. Many sellers want independent support to manage their sale or simply don’t have the time to handle it themselves.
Our professional vendor advocacy can be as light-touch as a one-off valuation and marketability assessment, or as comprehensive as managing the entire campaign. In May, we’re representing ten vendor clients across a range of property types – from busy professionals outsourcing the sales process to families navigating relationship breakdowns or estates.
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.
