Melbourne Property News Monthly Wrap – July 2025
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Clearance rates hit new highs in July. Private sales surge.
Over July’s four weekends the Real Estate Institute of Victoria (REIV) recorded more than 1,981 auctions. 1,505 properties sold. 1,138 at auction, with 223 passed in. 366 properties were sold before auction & 1 property sold after auction. The clearance rate was very high averaging 87.75%. 1,094 homes sold by private sale.
Big jump in private sales
Winter home sales powered through July with very high clearance rates, plus rocketing figures for private sales.
548 homes sold by private sale in July’s last week compared to 206 in June’s last week. This spike was caused by a combination of things – buyers seeing value in stock that’s still on the market, considering more interest rate cuts are likely. And sellers wanting to close deals before the Spring rush when more listings appear. Also, some vendors have been holding off going to market, waiting for more interest rate cuts, which has reduced supply and pumped up competition for available listings.
Melbourne values grow 2.4%
The wind has changed in Melbourne with market analysts PropTrack recording 2.4% growth over the first 6 months of 2025. These are modest gains but it’s a healthy about face, after Melbourne’s stalling figures for the last few years.
Home values around Australia are not shooting up like they did in 2024, but are still growing consistently with an averaged national gain of 3.2% ing the six months to June. With rate cuts expected later in the year (but not guaranteed) modest price growth will continue, but held in check by affordability.
What are buyers thinking right now?
Home up-sizing is a key driver. Moving to a more comfortable home is a powerful draw. Demand for quality homes is consistently high. Sellers of course want the highest possible price for their property. And buyers help that along by borrowing the top end of what their budget can handle. But in this environment of sharply rising living costs, buyers are cautious. When an asking price makes good sense, they’ll jump in, but not if the price has been set too high.
Six figure premiums paid for public school zones
High school zones continue to be a wildcard in Melbourne home values. According to new data from property analysts Cotality, the highest premium paid for Melbourne homes in an exclusive school catchment, is $357,000 in Princes Hill, which has University High School. This breaks down to paying $59,000 per year for one child at the school, for six years. Or $29,750 a year each, for two children. $30,000 per annum is on par with Melbourne private school fees.
It’s a similar breakdown for other prized high-school zones like Balwyn and Glen Waverley. Balwyn has a home price premium ranging from $198,000 to $330,000 (realestate.com.au). Parents who are attracted (and with deep enough pockets) to these zones could be regarded as wise with money, or alternatively perhaps as cheapskates, wanting to avoid private school fees but wanting private school level VCE results for their children. But the economics don’t always stack up. Social or cultural pressures appear to play a role. But getting monetary value for paying a six figure premium to live in a prized school catchment zone, means putting three or more children through the school. This looks like the real driver.
Plan now for the Spring Market. One of the best times to sell!
Market energy goes into overdrive in Spring with many buyers ready to purchase. Vendor Marketing will advise you on the best ways to prepare your home for sale, maximising its appeal inside and out, from street view to interior presentation. We are by your side through the sale process making sure every step builds to the best outcome for you, the seller. Our strategies for all stages of the process make sure your home has the very best chance of achieving its maximum possible sale price. Call Vendor Marketing today!
Craig Knudsen
Principal Advisor
Vendor Marketing
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