Spring is in the air, but not all segments of the Melbourne property market are feeling the heat. While some price brackets are showing strong signs of buyer interest, others remain subdued, and much of the market is still in a holding pattern.
Here’s what’s happening, what’s changed, and what to plan for in the weeks ahead.
Activity is up, but not evenly
There’s no doubt the market is getting busier. Mid-$1 million family homes are seeing decent turnout, and well-presented properties in the $600,000 to $900,000 bracket continue to attract solid interest.
At the higher end, however, momentum remains patchy. Many campaigns – particularly those around $3 million and beyond – are seeing only one active bidder come auction day. Even in blue-chip suburbs, buyer turnout at opens is often modest, and many “sold at auction” headlines are masking lengthy post-auction negotiations.
It’s a reminder that markets in transition are hard to read. Buyer behaviour is inconsistent, auction reporting can be misleading, and outcomes often hinge on just one or two participants. In many cases, the first serious offer is also the best one – and buyers and sellers alike should prepare accordingly.
First home buyer support expands from 1 October 2025
Significant changes to the First Home Guarantee take effect from 1 October:
- Price cap lifted: from $800,000 to $950,000 in metro Melbourne
- No income caps
- More flexibility: no limit on the number of applicants per application
This will open the door to more buyers, and will likely fuel strong competition in the $750,000 to $950,000 bracket. If you’re buying in this range, especially in Melbourne’s inner and middle rings, prepare for heightened competition through Spring.
Even if you’re not engaging a buyer’s advocate, now is the time to get your team organised, starting with your award-winning mortgage brokers at AXTON Finance.
Underquoting remains a hot topic
Underquoting is again in the media spotlight, and deservedly so. In some campaigns, pricing guides remain noticeably out of sync with final outcomes.
Kate Vines recently contributed to an article on realestate.com.au exploring how first home buyers are navigating this environment – read it here.
The reality is that compromise is often part of the buying process, whether that’s on suburb, house features or price. The key is knowing which compromises you’re prepared to make, and which are dealbreakers. That’s where working with an advocate can help, especially in high-pressure market conditions.
Selling in Spring or Autumn? Start now
Spring listing activity is increasing, and by December, the market is expected to be crowded. Many of these will be homes from buyers who have already secured a new property, or vendors hoping to take advantage of recent signs of life.
If you’re planning to sell, either this Spring or in early 2026, don’t wait until the rush. Early preparation puts you in a stronger position and gives you time to optimise your campaign strategy.
Whether you’re looking for a market appraisal, advice on agent selection, or full campaign support, we can help. Reach out to Joe Stinear or Kate Vines at [email protected] or call 03 9939 7576 to discuss next steps.
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.
