Melbourne Property News Monthly Wrap – August 2025
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Spring is here, with a new cohort of buyers lining up!
Over August’s five weekends the Real Estate Institute of Victoria (REIV) recorded more than 3,195 auctions. 2,424 properties sold. 1,806 at auction, with 443 passed in. 618 properties were sold before auction & 0 properties sold after auction. The clearance rate was a high 85%, down a bit on July’s 87%. 910 homes sold by private sale.
Spring has sprung, which means For Sale boards will start appearing everywhere. More Boards usually means more Buyers as they generally have a wider selection of properties to choose from.
Excellent conditions for vendors
For every 0.25 rate cut this year (three so far) there was a $20,000-$30,000 boost to borrowing capacity for most homebuyers. So, someone borrowing $500,000 last spring can now get about $100,000 more. Obviously that’s a real boost to entry level buyers in the $500,000 to $800,000 range, but the increased buying power goes right across the board, and across categories. The impact takes a while to filter through and spur values, but looking forward neighbourhood records are likely to be breached around Melbourne this Spring, as the unique 2025 market continues to bloom.
Big First Home Buyer boost in October
Government incentives like The First Home Guarantee scheme are about to put a rocket under first home buyers. From October 1, buyers can spend up to $950,000 with only 5% deposit, without paying lenders’ mortgage insurance.
Will the outlook stay this good?
The landscape ahead has firmed enough to expect value growth, with strong demand underwritten by lowering interest rates and steady immigration. The immediate future is bright for home sellers – as long as nothing drastic happens globally!
The banks tip another rate cut
All four big banks are tipping yet another 0.25 point rate cut before the end of the year, lowering the cash rate to 3.35%. We’ll see upward pressure on home values as people qualify for bigger mortgages. ANZ for example, is predicting a national median house price rise of another 5.8% across 2026.
Is it Frankston’s time in the sun?
It’s sometimes maligned, but it has waterfront, safe beaches, elevated views and established homes. There’s a vibrant town centre and direct freeway access to the city. So why isn’t Frankston one of Melbourne’s real estate hotspots? Well it looks like that’s coming. Values just jumped 0.4% across August alone (PropTrack) as buyers and investors get in early for the Spring rush. Frankston house values have doubled in the last ten years and according to some analysts growth is likely to continue as infrastructure improves and gentrification continues.
How Vendor Marketing maximises your sale price
Ensuring your best possible sale price is what we’re about. We advise on everything from home presentation to choosing the right real estate agent, on the best terms. We make sure the marketing campaign uses our proven strategies at each step of the way. Call Vendor Marketing for more information about getting your property’s maximum sale price!
Craig Knudsen
Principal Advisor
Vendor Marketing
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