Melbourne Property News Monthly Wrap – August 2026
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What happened in August and what home sellers need to know this Spring
Over August’s five weekends the Real Estate Institute of Victoria (REIV) recorded more than 2,053 auctions. 1,348 properties sold. 951 at auction, with 594 passed in. 396 properties were sold before auction & 1 property sold after auction. The clearance rate averaged 70%. 2,667 homes were bought by private sale.
Selling your home for the best result possible this Spring needs a distinct approach for your home’s own characteristics and value tier. It’s more important than ever to have Vendor Marketing’s experience and expertise on your side!
Property market analysts Cotality reports easing values continued in Melbourne through August, down 1.1%. There’s downward pressure in many neighbourhoods but value growth in some.
Cash Rate stays steady
It was good news for home sellers and buyers when the Reserve Bank did not raise the cash rate at the board meeting in August’s second week. It remains at 4.35%.
Where is the downturn sharpest?
So far in Melbourne the 2026 downturn has been primarily concentrated at the premium end, while affordable and entry-level stock continues to show resilience.
Blue-chip suburbs are the most exposed. The Toorak and Armadale belt is taking a hit with realestate .com.au estimating a 10 to 20% value drop in some categories. Agents report although lower priced Toorak properties have shown some sharp value falls, but those in the vicinity of 10 million and above, have been unaffected (Domain). That type of buyer is less reliant on borrowing. The Kew, Hawthorn, Camberwell private school belt is down also, but more in the -5% to -10% range. Brighton area values are holding up better.
Growth corridors play catch up
Affordable growth corridors are doing well. Some outer corridors and coastal pockets are still in value growth catch-up mode. Bonbeach for example has +22% growth in the last 12 months (median value). Coolaroo has +16.2%, Frankston North has +14.4%.
Where units are performing best
Units in well-serviced areas are getting great attention simply because they’re affordable compared with houses. Apartments at the affordable end in Sandringham have increased in value by 22.1% over 12 months. Albion is up 21.3% (realestate.com.au). Buyers are compromising on space, to get a good location.
Strategic pricing is key
Moving in the same market by selling a property and then purchasing another soon after, limits the setbacks in a softening market. There are benefits for upgraders in these conditions, particularly by selling very well and buying well. In this exercise realistic vendor expectations and precise initial pricing are key for avoiding prolonged time on the market. Vendor Marketing helps plan this transition so you can go forward with confidence!
Clearance rate dip
The auction clearance rate has dipped going from the low 70’s at the start of August, to the high 60’s near the end. The majority of home sales are by private sale right now (Real Estate Industry of Victoria).
Vendor Marketing is the best partner you can have either at auction, or for negotiating a private sale. We take the pressure off you and have the expertise to achieve your best possible outcome!
Craig Knudsen
Principal Advisor
Vendor Marketing
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